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pww.comMicrosoft Corporation - Special Call - NasdaqGS:MSFT

NasdaqGS:MSFT

Ann Johnson [Executive] đź’¬

During the Microsoft Corporation special call on May 18, 2020, Ann Johnson, an executive at Microsoft, discussed various aspects related to cybersecurity, market trends, and Microsoft’s strategies. Here’s a detailed summary of her statements:

  1. Overview of Driving Factors:

    • Data Proliferation: Customers are accumulating large amounts of data (petabytes) that need to be secured.
    • Cyber Attacks: There has been an increase in cyber attacks, including those by cybercriminal groups motivated by financial gain.
    • Cloud Adoption: Many customers are moving assets to the cloud, which offers the potential to improve security postures through global visibility and rapid response capabilities.
    • Microsoft’s Role: As a platform vendor with a significant installed base, Microsoft has an imperative to invest in security to support its ecosystem.

  2. Investments in Security:

    • Microsoft invests $1 billion annually in security, with 3,500 dedicated engineers working on the security portfolio.

  3. Portfolio Analysis:

    • Microsoft continuously evaluates its security portfolio and identifies areas of customer demand driven by new technologies or attacks.
    • Strategies include organic development, partnerships, and acquisitions, but there is no fixed spending plan; decisions are based on detailed market analysis.

  4. Global Signal Detection:

    • Microsoft detects trillions of signals daily, which are used to improve its threat protection suite, allowing for detection, blocking, and response.

  5. Zero Trust Environment:

    • Microsoft focuses on securing its own platform exceptionally well and providing heterogeneous solutions that work effectively in mixed environments.
    • The company is preparing for a significant shift towards Zero Trust environments, especially in remote work scenarios.

  6. Disruptive Solutions:

    • Sentinel: A cloud-native Security Information and Event Management (SIEM) solution designed to address the limitations of legacy on-premises SIEM systems.
    • Artificial Intelligence Security: Work on securing artificial intelligence systems against malicious attacks on the data.
    • Quantum Encryption: Research on quantum-resistant encryption and quantum encryption.
    • IoT Security: Development of meaningful work around Internet of Things (IoT) and Operational Technology (OT) environments.

  7. Heterogeneous Platform Education:

    • Microsoft aims to educate customers about its ability to secure heterogeneous environments, highlighting solutions like Cloud Access Security Broker (CASB), Azure Active Directory (AAD), and Microsoft Defender ATP.

  8. Zero Trust Journey:

    • Many organizations are now on a Zero Trust journey due to the need for remote work, and Microsoft provides building blocks to help customers implement Zero Trust strategies.

  9. Baseline for Zero Trust Strategy:

    • Multifactor Authentication (MFA): Essential for remote access solutions.
    • Cloud-Based Identity Store: Use of Azure Active Directory for dynamic provisioning and conditional access.
    • Conditional Access: Analyzes human behavior, device, authentication method, and data access to assign risk scores.

  10. Competition and Ecosystem:

    • While Microsoft offers a comprehensive solution, there are competitive offerings that cover different aspects of Zero Trust. Microsoft partners with other companies for network layer capabilities.

  11. Microsoft Defender ATP:

    • Runs on Windows, Mac, Linux, iOS, and Android.
    • Includes Microsoft Threat Experts for managed hunting and a threat and vulnerability management capability.
    • Focuses on reducing the endpoint footprint and encouraging standardization on Defender ATP.

  12. Microsoft Threat Protection Suite and Sentinel:

    • The Microsoft Threat Protection suite is ideal for hunting and investigations within the Microsoft environment.
    • Sentinel complements this suite by integrating third-party data and providing a comprehensive view of the entire enterprise.

  13. Transition to Zero Trust:

    • Enterprise customers have many security solutions and technical debt that will take years to clear.
    • Legacy controls may become less important, but a complete transition to Zero Trust will take time due to the complexity of existing infrastructures.

  14. Automation and Human Expertise:

    • Microsoft is investing in automation at the endpoint to handle mundane tasks and allow security professionals to focus on high-value tasks.
    • Automation includes using AI to detect and remediate previously unknown malware.

  15. Closing Remarks:

    • Ann Johnson thanked Keith for the discussion.

Andrew Conway [General Manager of Microsoft 365 Security] đź’¬

Certainly. Here is a detailed summary of Andrew Conway’s statements during the Microsoft Corporation special call on May 18, 2020:

  1. Introduction:

    • Acknowledged the presence of others in the call.

  2. Growth and Sophistication of Attacks:

    • Noted the increasing complexity and frequency of cyberattacks.
    • Highlighted the need for cloud-based technologies that leverage artificial intelligence and automation to combat these threats.

  3. Customer Perspective:

    • Shared insights on how customers (Chief Security Officers, CSOs) are experiencing challenges due to managing multiple security solutions.
    • Mentioned the significant time and resources spent on vendor management, operational costs, and contract management.
    • Observed a growing realization among CSOs that the gaps between security solutions and the cost of integrating them harm overall security posture.

  4. Consolidation and Integration:

    • Stated that there is a move towards consolidating security solutions and improving integration.
    • Clarified that this consolidation does not imply compromising on the quality of security solutions.
    • Emphasized Microsoft’s commitment to offering best-of-breed solutions that are seamlessly integrated.

  5. Strategy and Customer Opportunity:

    • Explained the importance of aligning customer needs with Microsoft’s strengths.
    • Used the example of Enterprise Mobility + Security (EMS) to illustrate how Microsoft identified and capitalized on trends such as cloud apps and mobility.
    • Highlighted the uniqueness of Microsoft’s approach, particularly the integration of identity and access management with device management.

  6. Impact of COVID-19:

    • Noted the increased demand for Zero Trust architecture and related solutions due to the pandemic.
    • Observed that organizations implementing Zero Trust were better equipped to handle remote workforces.
    • Mentioned growing interest in cloud security as more assets are moved to the cloud.

  7. Above-the-Line Advertising:

    • Discussed Microsoft’s efforts to educate customers about its comprehensive security offerings.
    • Addressed the issue of lagging customer perceptions and misconceptions.
    • Mentioned the focus on demonstrating the breadth of protection provided by Microsoft Security solutions.

  8. Identity and Access Management:

    • Described work done with Software-as-a-Service (SaaS) Independent Software Vendors (ISVs) to enhance integration.
    • Noted the extensive range of applications supported by Azure Active Directory (AD).

  9. Device Management:

    • Explained the increased focus on device management in a Zero Trust environment.
    • Mentioned the importance of ensuring the health of endpoints and using solutions like Microsoft Intune.
    • Highlighted the role of technologies like app proxy for bringing on-premises applications to the cloud.

  10. Integrated Threat Protection:

    • Discussed the progress made with Microsoft Defender and analyst recognition.
    • Introduced Microsoft Threat Protection, an integrated solution combining endpoint, email, and identity threat detection.
    • Emphasized the value of an integrated console experience for security operations teams.

  11. Cloud Security:

    • Mentioned investments in Azure Security Center capabilities following the Adallom acquisition.
    • Explained the balance between first-party and third-party security solutions in Azure.

  12. Pricing and Packaging:

    • Described the pricing structure for Microsoft 365 security features, including the role of per-user licenses and the value proposition of the E5 tier.
    • Mentioned the availability of individual products and the consumption-based pricing model for cloud security solutions like Azure Security Center and Sentinel.

  13. Conclusion:

    • Expressed gratitude for the opportunity to participate in the discussion.

These summaries capture the key points raised by Andrew Conway during the call, providing insights into Microsoft’s security strategies, customer perspectives, and product developments.