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    Why Microsoft bet on Surface

    enMay 28, 2024

    Podcast Summary

    • Microsoft's new era in AI technologyMicrosoft's push towards AI integration marks a significant turning point, signaling the beginning of a new era in AI technology and the culmination of a decade-long project to bring modern architectures to Windows.

      Microsoft's push towards AI integration across its products, including the new Copilot Plus PCs, marks a significant turning point for the company, signaling both the beginning of a new era in AI technology and the culmination of a decade-long project. Microsoft's leader for Windows and Devices, Pavan Devalluri, shares insights from the company's past, including the early days of the Surface and Surface RT, when the ARM bet was made to modernize the platform and bring modern architectures to Windows. Despite the long-standing joke that "next year" has been the year of Windows on ARM for over a decade, Microsoft now feels more confident than ever that this is the case. The diversity of the Windows ecosystem, which can be both a strength and a challenge, necessitated a more comprehensive approach to the project.

    • Microsoft's quantum leap in PC technologyMicrosoft identified the need for a significant overhaul of their PC technology, driven by customer feedback, benchmarks, and AI integration, to deliver a more durable and innovative user experience.

      Microsoft chose to invest the time to completely overhaul their operating system and hardware partnerships instead of releasing incremental updates. This decision was driven by the desire to address fundamental issues and take a "quantum leap" in terms of performance and customer needs. The process involved collecting signals from customer feedback, benchmarks, and trials to determine when the project had met expectations. The inflection point for this decision was the integration of AI technology, which presented an opportunity to reimagine the value of a PC in the modern era. The job of a PC in this era is to continue its foundational role in work and play for people, but with a renewed focus on AI integration and delivering a more durable and innovative user experience. Microsoft is at the beginning of this journey and expects there to be iteration, refinement, and learning as the technology evolves.

    • AI integration in Microsoft PCsMicrosoft is investing in AI technology to enhance productivity and user experience on PC devices, allowing for reasoning across multiple applications and workflows, and is exploring new UI patterns for infrastructure AI

      Microsoft is heavily investing in AI technology and integrating it into their PC devices, such as the Surface Pro, to enhance productivity and user experience. The combination of AI and PCs allows for reasoning across multiple applications, workflows, and multimodal interactions. Microsoft's ecosystem partners are also embracing this transition, making it a holistic approach for a class of devices rather than just one particular form factor. The power of the Windows ecosystem and its rich app catalog is a significant advantage for local AI capabilities. The UI of AI is still uncertain, with a focus on infrastructure AI that improves existing experiences and potentially new net-new applications. Microsoft is in the exploration phase, and there will likely be iteration, evolution, and varying patterns in how AI is implemented and perceived.

    • AI integration in WindowsMicrosoft is experimenting with AI in Windows to enhance user experiences, focusing on efficiency, intent, and personalization. They plan to use hybrid AI models and explore new shell surfaces.

      Microsoft is continuing to innovate and experiment with AI integration in their Windows operating system and apps, focusing on making user experiences more efficient, intentful, and personalized. They plan to use AI for serving customers where they're at in their workflows and creating new shell surfaces. The company also plans to explore hybrid AI models, combining large models in the cloud with models on the edge, to open up new experiences. Microsoft is committed to responsible AI and will continue to learn and apply these lessons to the Windows context. The Surface line will continue to drive innovation and lead the way for what's possible in the Windows ecosystem. Microsoft's approach to innovation involves experimentation, learning from the Windows Insider program, and applying lessons from other parts of the company. The company is balancing the cost of change with the ability to reach a large number of people quickly. The bet Microsoft is making now is to continue driving innovation in the Windows ecosystem while being responsible for end customers and the business within Microsoft.

    • Innovations in Comfort, Efficiency, and EnjoymentNew innovations in fashion, technology, and other industries are making our lives more comfortable, efficient, and enjoyable through high-quality, easy-to-care-for clothing, advanced floor cleaning mops, and simplified compliance processes for businesses

      There are exciting new developments in various industries, from fashion to technology, that can make our lives more comfortable, efficient, and enjoyable. For instance, Twillery offers high-quality, comfortable, and easy-to-care-for clothing that can be machine washed, making wardrobe management hassle-free. In the tech world, Dyson has introduced its first mop, the Dyson Wash G1, which uses a different cleaning method and has large rollers to effectively mop floors. While it's a big investment, it could potentially revolutionize floor cleaning. Additionally, Vanta simplifies the compliance process for SaaS businesses, enabling them to save time and money while establishing trust with their customers. Overall, these innovations showcase the continuous efforts to improve everyday experiences and solve common problems in various aspects of life.

    • IRobot Terra robot vacuum, Amazon MattercastingThe iRobot Terra robot vacuum provides a more efficient cleaning experience compared to handheld wet dry vacuums, while Amazon's Mattercasting technology holds great promise as an open standard for universal device communication, simplifying content casting and expanding smart home capabilities.

      The iRobot Terra robot vacuum offers a more lightweight and efficient cleaning experience compared to handheld wet dry vacuums from other companies, making it a worthwhile investment for those seeking a hassle-free cleaning solution. Another significant development is Amazon's Mattercasting technology, which has the potential to revolutionize the way we cast content from one device to another, especially on Fire TVs. However, its adoption is currently limited due to the lack of commitment from major tech companies like Apple and Google. Despite these challenges, Mattercasting holds great promise as an open standard for universal device communication, simplifying the process of casting content and potentially expanding the capabilities of smart home devices. Overall, while there are current limitations, the long-term potential of these technologies is significant.

    • Matter 1.3 and energy managementMatter 1.3 update introduces energy reporting and management features, enabling energy conservation, cost savings, and potential for universal compatibility, including electric vehicle management and virtual power plants.

      Matter 1.3, a recent update to the connectivity protocol for the Internet of Things (IoT) in the smart home industry, brings significant advancements, particularly in energy reporting and management features. This development opens up new possibilities for energy conservation, cost savings, and ease of use, making the smart home more necessary than ever. With the addition of electric vehicle management and the potential for universal compatibility across various smart home apps, Matter 1.3 sets the stage for improved energy efficiency and virtual power plants, benefiting both individual households and the grid as a whole. Despite some limitations, such as the need for manufacturer apps for advanced camera features and security systems, the energy management capabilities of Matter 1.3 represent a significant step forward for the smart home industry.

    • Interoperability challenges in smart homesThe interoperability of various smart home systems and devices under one platform remains a work in progress, with Google's new home APIs seen as a potential solution, but success depends on industry collaboration and addressing interoperability issues.

      While there are advancements in technology and certifications like UL for security systems and the anticipated arrival of adaptive lighting, the interoperability and integration of various smart home systems and devices under one platform remains a work in progress. The collapse of companies like Brilliant, despite their promising potential, highlights the challenges startups face in this space. Google's new home APIs, offering access to their automation engine, are seen as a significant step towards improving the smart home experience and increasing device compatibility, potentially making it a huge deal. However, the success of these initiatives relies on the industry's ability to address interoperability issues and encourage collaboration among device manufacturers and app developers.

    • Google Home APIGoogle's new Home API allows developers to create innovative experiences and platforms using Google's technology, potentially leading to a wider range of devices and capabilities, new partnerships, and applications in various industries.

      Google's new Home API is set to open up the smart home ecosystem, allowing developers to create innovative experiences and platforms using Google's technology. This could lead to a wider range of devices and capabilities, as well as new partnerships between companies. The API's potential goes beyond just smart home devices, and it could inspire developers to create new applications in various industries. However, the success of the API will depend on how many developers take advantage of it. Companies like ADT are already using it for facial recognition and home security, and it could potentially be used by others in the home industry or even beyond. The API's announcement was seen as a solution in search of a problem by some, but it could also be a stepping stone towards integrating the smart home more deeply into the online ecosystem. Overall, it's an exciting time for the smart home industry, with new technologies and possibilities on the horizon.

    • AI in Chicken Coops, Podcast ProductionAI technology is transforming industries beyond smart homes, like chicken farming and podcasting, by improving productivity and enhancing experiences, despite high costs

      Advanced AI technology is revolutionizing various industries, even those outside the traditional realm of smart homes, such as chicken coops and podcast production. For instance, a high-tech chicken coop can monitor egg laying, count chickens, and detect potential predators. Meanwhile, Podcast AI aims to make podcast production more productive for producers. These innovations demonstrate the expanding influence of AI and show how it can enhance everyday experiences, whether it's tending to chickens or creating content for podcasts. However, the significant cost of these advanced technologies raises questions about affordability and competition. Despite the high price tag, many people are willing to invest in these innovations due to their unique features and benefits.

    • AI search enginesAI search engines like Bing and Arc bypass websites and provide summaries directly to users, potentially reducing website traffic and ad revenue

      The relationship between websites and search engines like Google has evolved significantly with the advent of AI technology. While Google's dominance in sending traffic to websites has been a crucial exchange for two decades, the latest AI tools like Bing and Arc are changing the game by bypassing the original source of information and providing summaries directly to users. This shortcuts the value exchange of the Internet, as websites no longer accrue benefits like ad revenue or increased traffic from these crawlers. The shift raises concerns about Google's growing power as the arbiter of online information and the potential impact on publishers, bloggers, and content creators. The future may bring increased competition in the search engine space and potential threats to website traffic.

    • Google algorithm update impactGoogle's new algorithm update has a larger scale and potential consequences for website monetization and the economy, with ongoing discussions on The Vergecast encouraging listeners to seek out more information on their website.

      While the principles of Google's new algorithm update may be similar to those of past updates, the scale and impact on the open Internet and the economy of website monetization make it a much bigger issue. The uncertainty surrounding the update and its potential consequences for websites and businesses will be a topic of ongoing discussion on the Vergecast. The Verge encourages listeners to visit their website, where they can find extensive coverage on the topic and avoid relying solely on Google. The Vergecast is produced by Andrew Marino, Liam James, and Will Poor, and the team will be back on Friday to discuss more on AI and other tech news. The world works with ServiceNow, which puts AI to work for people across businesses, improving productivity, enhancing customer service, and providing intelligent tools. Visit servicenow.com/aiforpeople to learn more.

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