pier 3 in san francisco, welcome to "bloomberg west." aol ceo tim armstrong joins us to talk about his company's new platform. will it help aol get a bigger piece of the ad market?

and now turkey has blocked access to google's youtube. court ordered the government to lift the ban on twitter although it is unclear whether if or when it will be lifted. twitter has signed a deal with billboard. charts will measure the popularity of songs based on how much buzz it is generating. twitter announced plans to his continued its #music app. shares are up more than 15%. try net makes cloud-based software for medium and small businesses.

it is time for microsoft the the press ast chief executive. mobilea bigger push into and tailoring its office suite to work on apple's iowa state vices for the very first time. cory johnson is live outside the event. >> you have two big significant things happening in san francisco. have satya nadella, the new microsoft ceo, addressing the tech journalists. that is a big deal. it is a big deal that he came to us. he came to san francisco where the big tech companies are

headquartered here in -- headquartered. microsoft office will be on the iphone and the ipad. there are more ios devices sold then microsoft devices. coming to where the users are. that is a big admission from microsoft that they need to be in more places. >> standby. i want to take a deeper dive into who he is and what his qualifications are. a look into the background of the man who is taking over for steve ballmer. followld you like to this act? satya nadellafor is no one expects them to be steve ballmer or wants them to be.

is now having to deal with the tug-of-war over strategy. cofounder bill gates initially disagreed with ballmer's plan to make mobile devices. it didn't help that the microsoft surface tablet was a nadella, they have chosen a -- years atwendy two microsoft. he ran the company's rmb unit before ballmer named him the head of the server group. he reengineered that business into the unit known today as cloud and enterprise. under his leadership, it has risen to number two worldwide in cloud computing behind amazon. nadella is seen as someone who can help microsoft innovate faster as it tries to navigate the post-pc world. still count on windows

and office, microsoft's two big money makers. so what does today mean for the future of microsoft? we have a group of special guests to discuss. from framingham, massachusetts. -- ave a former microsoft executive who reported to nadella for many years and cory johnson who is live at the event. michael, i would like to start with you. why did nadella make so long to make his debut to the public? itactually, if you look at in the context of the time he has been ceo of microsoft, it has been a very fast move. this decision was made when ballmer was still ceo. october, he announced that

the office for ipad would be coming in 2014. and thee ceo search time it took to get the ducks in the road -- in a row -- >> so you are saying that nadella doesn't really get credit for this announcement? [laughter] >> this work has then going on within microsoft for at least three years. >> i think we are having trouble with your microphone. i will get back to cory. did you hear that? doesn'tthat nadella deserve credit for this announcement. >> michael couldn't be more wrong. i couldn't hear them but i will just say that he couldn't be more wrong. influence atla's microsoft was felt in the decision to do things like this app. his groundbreaking decision and insistence that they offer

oracle database on the microsoft cloud to their customers was the kind of decision that this also represents. ipad --on of making an one of the great strengths of strength of the microsoft word, microsoft powerpoint, microsoft itself, those applications that are so unique to microsoft. making the decision to share those with an operating system that they are try to be in the marketplace will strengthen apple not just by making devices thoseseful but 30% of sales will get paid right out to apple. that is a very aggressive decision. absolutely, this started under steve ballmer. but this is nadella showing the way of the future. microsoft's one of big products. google is trying to get into that market with google documents. i just spoke with bret taylor

who is trying to replace windows from mobile altogether. in terms of this competitive landscape, is office really the right thing for nadella to be focusing on? >> absolutely. this is the language of business. when you think about the way people communicate, the way that they send information, microsoft office is a huge part of that language. people can throw rocks at it. people can say it is not as relevant as it used to be. but in the valley, it is the way people use information. microsoft needs to up level away from the os and to microsoft services. you will see more of a collaboration platform in a way to unlock her grams. >> michael, you worked with nadella for many years.

where do you see him leading this company and is it the right direction? >> he is a really incisive thinker and he loves to be able to find near-term opportunities within the company to execute huge returns. i agree with cory in the economics case... -- the decision. i think satya has an immense challenge with respect to changing the innovation culture within microsoft. it is not good enough to connect the dots anymore. those blue find ocean opportunities compared to where competitors are today. >> i wonder about microsoft's on mobile devices. what are the plans for those? going to continue to focus on those products? herethink that next week, in san francisco, there will be

a big focus on some phones, possibly announcements of new devices as well. i think the reason they split this announcement apart from next week is that they want to get a lot of focus on this ios product. the best analyst estimates are talking bout dollars in revenue but a big part of this is really not so much about the consumer. while the consumer will really and theme money on this consumers who use office products in other environments,, what this is is trying to get back into the enterprise on the devices they lost the battle of. where you got the android devices and the ios devices coming to the office place. articulately the ipad. -- particularly the ipad. you've got your ipad without office. microsoft has a chance to get

that subscriber revenue on a regular basis to bring those users back into that ecosystem that is microsoft with the office product. i think that is the strength they want to offer here. >> crawford, what odds do you give nadella to be able to make some of these hard turns, to change the innovation culture to shifthese major platform decisions that could be very difficult along the way? >> i give him high odds. i give him 75% odds. microsoft's relevance with consumers has dropped. they cannot afford to let their relevance drop in the same way. people need these kinds of devices. people want to use this microsoft service. you can use google services, but it's harder. this kind of a service has huge

value. unlockosoft needs to that value and they need to transform the company to be able to say, look, where we can excel, we can monetize that and grow. largere is a much willing participants. they need to be pushed there. >> we are looking at satay nadella right now on stage and he is not jumping around like a monkey. he looks like a normal ceo. crawford gives in 75% odds. >> i think that is pretty fair. i think that is exactly the kind of mission microsoft needs to focus on. microsoft has been hamstrung by its prior mission of a pc on every desk in every home. ok.

michael kim who worked for nadella. we will be back with cory later on this hour. ♪

"bloomberg west." yahoo! publishes a transparency report. the report says data was disclosed in 83% of cases. reportalso published a saying that government requests are up 120% in the last four years. it also disclosed data in the second half of last year. come from google and yahoo! just as president obama offers a major overhaul.

datants to end bulk phone collection. correspondente joining us from washington. first of all, break it down for us. what exactly is the president proposing? >> what they laid at -- what the white house laid out is they want to end bulk collection but they want the federal agencies and law-enforcement to have access to the same kind of data. that means that the nsa will no longer be collecting that bulk metadata from the phone program. the phone companies will maintain them which is what they are required to do by law now. then the federal government would have to get an ok from the fisa court before they can go query data. by privacyng lauded advocates as a major step forward compared to where we were. however, there is concern from

the phone companies. the general counsel from verizon has released a statement saying that putting the onus on the phone companies might be problematic from a couple of different levels, not the least of which is legal liability and the other is cost to comply. the administration getting so involved in what is likely to be a congressional debate? interesting. it is a house and senate issue now, not the white house. the white house perspective is this. we need to get involved in this because there are segments of the house and senate who want to go even further, be more restrictive. the white house feels that, if they can get a conversation around their specific proposal, they can get more of what they want in the final way of the program. >> thank you. l push intoao

advertising. you can watch us on your bloomberg how the -- bloomberg tablet.

>> four of the top contenders for the 2016 republican residential nomination are spending the weekend in las vegas where the republican jewish coalition is meeting. candidates are hoping to convince sheldon adelson that they are the ones who can win the white house. josh green is in las vegas outside the venetian hotel where this meeting is going down. josh, tell us who is there and why. >> you have four blue-chip

republican candidates. chris christie of new jersey. jeb bush. and scott walker who is the governor of wisconsin. and john kasich, governor of illinois. adelson has summoned them out there. he is putting on a beauty contest to pick one of these guys and back them with his substantial fortune. dropped $23lson million in the presidential election. whatever candidate he selects stands to get a substantial gain. >> talk about adelson's position on internet gambling. it is something he does not like at all but a direction that some states are going in. adelson made his fortune obviously with casinos like the

venetian behind me. real-world casinos that people come and visit and spend money at. internet gambling poses a threat and he helped fund a washington front group to stop internet gambling. this is not an issue that is big within the gop. he will have a bit of trouble finding support. offer $100ng to million to a candidate is certainly an incentive. but if you look at people like chris christie who will be here at this dinner tonight, christie has supported internet gambling in the state of new jersey. social than adelson may wind up with having to choose between supporting unelectable republican -- supporting an electable republican and one inclined to block internet security --cial social conservatives like mike huckabee and rick santorum. still hasnk huckabee a chance of getting his support even though new jersey has legalize online gambling? >> early on, yeah.

the word is that adelson viewed christie they very -- christie very favorably. that was before the washington bridge scandal. the word is that adelson is concerned. but chris christie is here and he will have a one-on-one number station with adelson. so he is still in the running for adelson's support. let's talk a little bit about republican candidates and how they are using and understanding technology. historically, republicans, it seems, haven't needed to embrace technology. is that changing with this new crop of potential candidates? >> that is a great question. it is changing with some of the candidates. them knows, most of they got stumped on tech in

2012. of gopller segment hopefuls, rand paul and marco rubio, are trying to embrace and identify themselves with the innovation economy. uber has given speeches at and google and talked about the economy and innovation. it is likely that candidates like those would suddenly stand up and endorse a ban on internet gambling. one of the questions to watch or to keep an eye on in the republican primary is due candidates like rubio and paul orrge as strong contenders will it be somebody from the old school republican party, some of you like santorum who hasn't put up a position on tech one way or the other. i am inclined to believe that rubio and paul will be better candidates. >> josh green for us in las vegas at the ship -- the sheldon adelson hi mary. coming up, we will be talking about aol wanting to get a slice

of the online advertising market. ♪

>> you are watching "bloomberg west." is making his debut as the new microsoft ceo. cory, what can you tell us? despite all the people on the streets and the buses arriving, they are not here to see me. they are here to see nadella. talking about his vision about the world of computing. >> the world in the nymex five years in the tenures will him not be defined by the form

factors and we know today but the variety of form factors that will come to deal with the coming years. if you think of the core evolution of silicon hardware systems. >> that kind of gives you an , aa of the thought process real clear vision of what the future of computing will be and not sure where microsoft is in that. don't be wrong about that. this is not about the apple ios. this is getting all people in systems to subscribe to microsoft office 365 and how they will work hand-in-hand. the apple ios product is just a part of that. >> the cloud that is not connected to devices is just latent potential. how does the cloud react with the real world? interacting with real

devices. a device which is not connected to the cloud dust cannot complete the scenarios. it really gives you a clear idea of what they are trying to think about and the advantages they think they can reap from this. right. cory johnson outside the microsoft event. just as microsoft is hoping to innovate and grow, aol is also a company in transition. hoping to become a dominant force in the online ad market. it just introduced a new ad platform called one by aol. it helps automate the process of buying and selling online ads by combining ad technology.

cory caught up with aol ceo tim armstrong earlier and asked him what the new platform is. >> basically, it's a platform for the advertisement business that will is -- will essentially make advertising and e-commerce. >> if only. this is across the network of the different businesses that you guys have. we havend our networks, 20000 and 30,000 other publishers that use our ad systems. it will basically go across the entire ecosystem of our network and it is built as an open platform, like an app store. if companies want to bring in other partners or other data, it is truly like in itunes or amazon-type platform or advertising. >> is the notion that this will be a parallel problematic desperately programmatic -- parallel problematic at buying? you can programmatically by

across the entire web. you can also bring your own data. you can bring your own point-of-sale information. it is really powerful. >> what are the changes -- i have been trying to get my head around it. >> programmatic, the simplest the, is the information of advertising business. of automotivein from when you get the metal out of the ground to when ebay motors can buy a car, the only part of the total supply chain that has not been fully automated is advertising. where the industry is going right now, the baseline is to put machines into places where machines can tirelessly do over a big scale what humans have a hard time doing. the human capacity in advertising will go to the creative side and the planning side of advertising. >> not to placing the ad to find

the right audience. >> you don't want to use human knowledge to basically do spreadsheet work. you want human knowledge figure out how to come up with creative ideas and find audiences around their and machines will help advertising scale to a degree we haven't seen yet. adapt tv --ravity, is this all of those things coming together? >> it is all coming together. we started back three or four years ago saying -- advertising is all most a trillion dollar industry globally. it is not automated for the most part. when you think about automation, planning, serving, by analytics, it is probably going to get automated. recent one is gravity which personalizes advertising and content for consumers which is a very big part of the future of the internet. is the best video

marketplace for buyers and sellers. our theory is that it based on emotion will trump a lot of the things done on the internet. >> video and mobile. >> people ask what our mobile strategy is. we have a two-for-one strategy. >> i'm supposed to ask you that. what is your mobile strategy? >> our mobile strategy is video. video works well for consumers and advertisers. if you think about screen size on those things, if you watch kids these days, even some adults, it does not matter what size screen they watch. our ability to serve video throughout the internet and add video as throughout the internet, we have been successful at it so far. >> i was talking with a friend the other day and he has been addicted to the game of thrones. that was he was home,

his preferred way to watch it, not on the big expensive tv that he has. >> overtime, people like personalization in the way they use things. household in america, if you have three or four or five people in the household, you have multiple people on different screens watching different things at different times. there will be the common need for human collective -- but a lot will be personalized and require a lot more content to be produced. i think the mega trends going forward will be a massive in content, increase in ad content to get created, and you will see networks and devices get really fast. go next 18 months, you will from single custom multicast on most of the major carriers which will probably explode the amount of video usage which is already exploding on some devices. >> is their standardization on

the way ads show up around video? days of thehe early internet, the internet started toh people, consumers going the internet and advertisers going and it took years or formats to get adjusted on what would work well on the internet. videonovation around formats and video analytics for advertisers is in the first inning right now. the gap we, which is want to close, is the biggest opportunity and is still in the first inning. >> cori with aol ceo tim armstrong. on, cialis top companies are redesigning their headquarters. iswill speak to the man who overseeing cutting edge new design next.

horowitz has just closed its

million, a $1.5 multistage venture capital fund. opportunitiesoted that have sprung up because of mobile. he pointed to opportunities in full stack startups, where companies build complete products. our next guest has led the architectural design of new headquarters for technology giant from google to amazon to samsung. his firm uses computational design to approach design problems for some of the tech industry's largest design problems. he joins me now. computational design, what does that mean? >> it is an ability now that we never had before.

we are at a time when there is more research and more stability to research. there is hardware and software that allows us to take large amounts of data and make it meaningful. to start to prove the performance of buildings, they need an approach of performance of human beings in those buildings. >> you design for the biggest names in tech. a teche the demands of company headquarters and how does that differ from others? >> the technology business is incredibly competitive. what you have is a demanding client which makes it really fun to be a designer. design,igh demands for high expectations. they want facilities that can help them compete for the best employees in the world and they really want facilities where those employees can reach maximum performance and high performance teams. let's talk about the difference between google, samsung, amazon -- how are each of these projects different and

how did they ask you to approach them? >> the tech business is like many businesses. you need differentiation to compete. theseach -- each of companies is different and they work hard to be different and to be unique. with that, you get unique cultures. we arere, as architects, looking into those cultures and products and processes to reflect that and enhance that in the design. how do they differ? >> it is those differences that make it so much fun. personality counts. cultureity often drives and the kind of competitiveness and the kind of attitudes. those attitudes really drive success. that is what we try to pay attention to in these facilities. >> is there anything in particular that larry page wanted you to develop? any particular feel or look? >> well, a lot of those

conversations are really confidential and we are asked to keep that confidential. but i think you will see and we all get to observe these companies in the way they are behaving in their products. they are unique and interesting. >> how does a ceo shape the direction? how involved are they in the process? how many times do you meet with that person? >> that is a great question. we believe that the visionary leaders of companies, the more they are connected, the more they can get out of their facilities, the more performance, particularly the human performance. we have seen ceos involved. once a cases as often as month and certainly as often as once a quarter to be looking at the work and looking at the options. >> what are we looking at here? en that is tenc

headquarters in china. 'there are some really advanced looking headquarters in china. >> what is interesting is how similar they are these days in being global competitors. it is not just about competing in china. certainly, there are differences. there are the cultural differences of how they work, who their employees are, and how they will attract and keep the best employees. and also start to learn how high-performance teams were again what are the aspects of that that the buildings can enhance. and soinating stuff important because this is where these people are coming to work every day. and ceo of, partner nbj.

>> silicon valley has taken center stage in the immigration debate with mark zuckerberg wishing for immigration reform. ceo argues valley that green cards should be attached to u.s. const agrees. i want to talk about that a little more now with our guest. first of all, tell us your story, your immigration story. i find it so fascinating. when i was 17ay years old and i came to this country with $50 in my pocket. >> what was the first and you did? >> i went to a place called eastern mountain sports and -- and bought myself a parka. in bombay, it is pretty hot and it was turning to get cold in boston. >> so then you had about $10

left. >> i had very little money. they had like a special for foreign students. we bought them in bulk and got them cheap. ceoo now you find yourself -- owner of the sacrament of things. >> i love your colors. >> when you look at the , sogration scene right now many prominent indian americans running companies, talk to me about what the state of that is right now and why we are seeing changes? >> there is no industry that is more fueled by brainpower than the high-tech industry. nearly half of the companies that have been founded in the last decade have immigrant founders. so it is crazy that we send spend thousands of

dollars educating them and say to them goodbye. go home now. we should be attaching green cards to their diploma and encouraging them to stay. >> should there be any other requirements other than they got a degree in the u.s.? >> it is a very competitive world right now. from aget a degree college like m.i.t. or for that matter any college in a technical area, i think we should be encouraging these kids to stay. >> the issues holding that up has not in disagreement in either party about certain kinds of immigration. it is comprehension -- it is conference of immigration reform, the opposition of low skilled workers coming into the country that hold up the passage. are we as a nation or a technology community even at a competitive disadvantage because

of the insistence on competence of immigration reform or is it morally the right thing to do and the democrats who are holding out for that should hold up for that? >> you have to decouple it. you can't boil the ocean in one shot. it is a competitive disadvantage . the siliconsking in valley is let us have the best and the brightest no matter where they come from. we still have to convince them to come and stay at our companies. we are not forcing them to stay. so they have choice. just make it a little bit easier by giving them that green card. >> what do you think of mark zuckerberg's approach and all the tech heavyweights that are backing him? i think it has been effective. i have a huge regard for all the people that are backing that initiative. we just have to all do whatever we can so we can keep these kids. >> talk about culture, two.

how it is infiltrating or being seen more in silicon valley. you have an indian night coming up for the kings, something you did for a file when you are part owner of the warriors. i feel like the culture is coming more to the forefront than it has in the past. >> there is a lot of indian and chinese and asian engineers. we try to expand -- at my company, we have indian food, chinese food. these people make as comfortable as possible and this is what makes silicon valley so special. we don't care where you come from, what you look like, what kind of food you like. it is an open place. no secret that open systems beat closed system and we want to be an open system. >> if immigration reform doesn't happen, what is the result? >> half of the companies that have been founded in the last decade or to have immigrant

founders. there's been a trillion dollars of wealth created in silicon valley. if we don't have access to the best and the brightest, there is going to be an impact. there is no question about that. >> haven't we seen that already? your company has seen six quarters of single digit or even negative sales growth. i wonder if you tie that directly to lack of innovation? is it hurting us to make the right products? >> i think it is. revenues have our come from products we haven't even invented yet. i need the best and the brightest. and i need them from all over the world. i need them from india. i need them from china. i need them from south america. i need that brainpower. >> thank you so much for sharing your story and your views with us. it is time now for the number that tells a whole lot. john is in l.a. what have you got? >> here is the bite.

seven. as in seven days. on april 2, amazon says that they will have an event in new york tied to video. they sent an invitation to the press today. in the invitation, they have a little bit of popcorn so there may be ties in their movie initiatives, tv show initiatives. brad stone is hearing that out the house, one of their original shows, is going to get a second season. >> indian food. chinese food. popcorn. [laughter] elusive amazon set top box, we will be covering that next week. >> all of these different devices, the cloud, all of this data, it is funny to cover all of these companies and have them

all come together. >> thank you all for watching. we will see you later. > . .

>> from bloomberg world headquarters in new york, i am mark crumpton. this is "bottom line." today, congress passes a financial aid package for ukraine. then, what's in store for the banks that fail the latest fed stress test? and we will look at a game changing ruling for college athletes. to our viewers here in the united states and those of you joining us from around the world, welcome. we have full coverage of the