the microsoft case is an important part of that story. it is fitting that we have gathered here today to discuss it, but i should make one thing very clear, and right from the start. while the microsoft antitrust controversy in retrospect offers several important lessons, it was no panacea. on the one hand, we must avoid treating it as a sort of permission slip to ramp up enforcement of entities or markets that bear superficial similarity to the microsoft story. on the other hand, while markets change rapidly and technology evolves at a dizzying pace these days, the most basic laws of economics persist. the world we occupy today is in many ways different from the world in which microsoft fell under such scrutiny, but what experience taught us then remains relevant. so, what are some of the important lessons we can learn from the microsoft experience? first, that the technology sector is an integral part of our economy. it is bound to become all the more important as we race further into the 21st century. these days, our digital ecosystem i

during the height of the microsoft case, mr. cooney served as chief counsel and staff director of the united states senate judiciary committee, where he was the principal legal and policy adviser to the committee's chairman, senator orrin hatch. and last but certainly not least, we've got tim wu, a professor at columbia law school, contributing opinion writer for "the new york times." he is perhaps best known for coining the term net neutrality, but writes about private power, free speech, copyright and antitrust. "master switch," his book, chronicles the rise and fall of technology empires over the course of the 20th century. jack, i'll hand it to you. thanks. >> thanks, luther. welcome, everybody. it's sort of an interesting twist that 20 years later i'm here moderating a panel with four individuals that i think represented the leading voices on the opposite side of my then employer and the work that i was doing back then. but it's actually a great honor to be here. and before we get into questions, i thought i'd open it up to

the platform. look at microsoft. look at i would say the eu ice android case, so there i think you're safe with going back to the microsoft reasoning and using it, saying this is really entry for, you know, upending the platform, or that the -- that the lock-in switching cost, the economic power of the platform, yeah. >> well, i wish we could have a little bit more time, but really appreciate your time, and we'll take a five-minute break before we get the next panel up here. thank you very much. [ applause ] >>> it's an honor to have senator richard blumenthal closing out today's conference. he's serving his second term as a united states senator from the state of connecticut. prior to this position he served an unprecedented five terms as connecticut's attorney general fighting people against large and powerful special ies

he was also one of the 20 state attorneys general to file a lawsuit against microsoft in 1998 alleging market power abuse. speaking about the lawsuit, then attorney general blumenthal said our actions seek today for market to siphoning innovation and short-changing consumers. what we're saying to bill gates in a very real way is stop your 800-pound gorilla from blocking access to the internet and the information superhighway. on that note we're thrilled to welcome senator richard blumenthal to the podium. [ applause ] >> this will -- i'm on a very short leash now. let me, first of all, thank you all for having us today and organizing this very important gathering, and also to all of the experts who have been here before me, i'm sure they have exhausted the topic and your patience, and i think i'm one of the last, correct? so talk about closing arguments, this is it, and i'll be very brief fanned there are any questions i'd be happy to take any. i want to sort of bring back on a somewhat personal note my experience as attorney general. you've heard from some already. bill clinton once s

i think that the microsoft case is highly relevant today, and i actually started covering the tech platforms exclusively about two years ago because i started seeing over and over again that they were all employing microsoft-like conduct, and to me that was risk of antitrust enforcement that people needed to know about, so it was literally seeing, wow, that's just like microsoft. that's just like microsoft. seeing that over and over again was what made me start writing about this exclusively two years ago, so i think all the major platforms are doing it, and why we should care i would like to echo some points that senator hatch made which is, you know, anti-trust law is about having a fair shot, and i never thought i would agree so much with senator half. i'm a pretty lefty person myself, but to me it is about having a fair shot, and if you are dependant on a tech platform to reach users and then that tech platform is also going to be competing against you, you don't have a fair shot, right? and i like to say it's like there's the tech platforms are controlling the arena in which the game is

the statement. they say microsoft supplying i.c.e. with cloud services to include deep learning capabilities and accelerate facial recognition and identification since the beginning of the year. our sources say the git hub coders are most concerned that ceo or the president did not specifically address facial recognition capabilities, and they tell me this is the most ethically concerning piece of the puzzle to them. liz, it's worth noting if microsoft were to drop contacts with the government, amazon, google are the two other big companies that have this same kind of cloud power, big data power, but since president trump did sign the executive order reversing the i.c.e. policy of separating children from families, the pressure may be off in the meantime. but this story is not going away. a lot of members of the tech community have strong political views. there are going to be more crossroads to come, liz? >> deirdre, thank you very much. to wall street, where the dow looks to snap the longest losing streak in 15 months. we do have the

what is the value added for microsoft? they have got plenty of blockchain expertise in the company. >> they do, and microsoft has been an incredible technical partner. what has been amazing is not only do we have deep process knowledge around it, but we have been equal partners of microsoft in the technology development. puttingopers have been together the process around smart contracts, scaling up blockchain. from a transactional perspective, this will be the industrial biggest blockchain in the world. when fully deployed, it will be 2 million transactions a day. our engineers worked alongside microsoft engineers to make sure we could build a solution which would scale even larger than ethereum and bitcoin combined. caroline: talk about the scaling challenge, because it is what has been holding back and frustrated ethereum and bitcoin with why it can't be used for the payment solution. why have you been able to scale to get so many transactions when it is an industrial solution? >> there are some advantages when working w

role in the developer system it's not the same microsoftt was 15, 20 years ago. >> is there a risk, kara, in terms of them losing some of the business from these developers that traditionally may want to be with someone smaller, independent, as opposed to a goliath like microsoft >> meaning they don't want to be part of github because microsoft owns it? >> exactly. >> developers will flee the platform, is that -- >> exactly. >> i think that's the worst case scenario in this a lot of people are very imported into this system and use it it's a very vibrant and healthy system i don't know that that would necessarily make them move along just because it's owned by microsoft. if they made substantive changes or advantage microsoft, that would be the case. i don't think that's what satya was talking about when he was discussing that. he's right they've done a very good job i was just at linkedin recently and talkedo jeff wiener, ceo there. they've done a very good job of keeping hands off. and they should. they shouldn't medal they got into troub

what was the value add for microsoft? hat got plenty of blockchain expertise in the company. paul: they do. microsoft has been an incredible technical partner. not only do we have deep process knowledge around it, but we have been partners with microsoft in the technology development. been puttings have together process around art contracts, scaling up their blockchain. this will be the biggest blockchain industrial blockchain in the world. when it is fully deployed out, our engineers worked alongside microsoft engineers. caroline: talk about the scaling challenge. it is what has and holding back any who have frustrated with why it can't be used for the payment solution. why have you been able to scale to get so many transactions when it is an industrial solution? paul: there are some advantages when working with the microsoft environment. we chose a program called quorum. it allows us to scale. we made some choices in the design architecture that will allow us to speed up the process. the most important thing is if you lo

after the break, we're going to have a debate between apple and microsoft. we started it already. over the next, let's say two years, which stock has the best percentage return? apple or microsoft >> tell us on twitter,@halftimereport. we want to hear from you >> we do we'll be right back. ♪ that's confident. but it's not kayak confident. kayak searches hundreds of travel and airline sites to find the best flight for me. so i'm more than confident. how's your family? kayak. search one and done. theextreme risk of burstd a pipes and water damage...y... soon, insurance companies won't pay for damages. that is, not if they can help prevent damages from happening in the first place. at cognizant, we're turning the industry known for processing claims into one focused on prevention with predictive analytics, helping them proactively protect the things that matter most. get ready, because we're helping leading companies see it- and see it through-with digital. >>> welcome back let's continue this debate we were having. we didn't get to the whole thing. we had to do some breaking news. do

that was the biggest driver for microsoft. e to take out two thirds of their cost of managing. and, we are able to drop the time required to process and sections and tell partners how much they have coming. we dropped it like 99%. timeiggest cycle compression we have had in my career. carolina: where else are you looking than? what other industries? if this number that ey is already looking at? what about other technical partnerships than microsoft? paul: we have a foundational principle at ey that we believe blockchain's will do for ecosystems of companies what erp did for the single enterprise. anywhere that you have complex business logic and shared network control that need to be diplomatic, it is a good solution. the early ones we are working on our things like supply-chain management, logistics partners, manufacturing, any kind of intellectual property. ultimately the goal is to have an integrated system where we could take license token from a microsoft solution and drop it into a an effect for building materials for a c

that was the big driver for microsoft. ble to take out two thirds of their cost of managing a rights and royalties system. and, we are able to drop the time required to process and -- transactions and tell partners how much they have coming. we dropped it like 99%. this is the biggest cycle time compression we have had in my career. emily: are you looking for a job? one that lets you got down the competition, fight off hordes of alien invaders, be part of a team of top athletes? and one that pays up to $4000 a month with nine digit signing businesses -- bonuses? aofessional gaming is no billion dollar industry coming giving a new wave of teens and twentysomethings a shot at celebrity. just imagine living in this $15 million home. steady salary, supported by a team of staff whose sole purpose is to , get you to play at your best. >> fellas, let's go. >> if you don't perform, you are cut from the team. >>ere we go. round three. round three. no breaks. >> if you think this sounds like the life of a pro athlete, you would be ri

working on a i and have a relationship with the government? >> microsoftwo years ago put out something similar about ai. the aclu has criticized amazon with its use on facial recognition technology. google is a rare company in many ways where they had given their staff these vehicles for complaining for protesting. that hasn't quite happened at amazon or microsoft. emily: how do we expect the employees to receive these guidelines? will this appease some of the folks that were really upset? >> right now some employees have been saying we don't want to do any military work at all. some are willing to have these conversations. some are can comfortable with surveillance. emily: thank you so much. some stories we are watching, go -- an indonesian ride-hailing service was offered a billion dollars in new funding. this is to ensure its first international forays are successful. the company has not decided whether it wants the cash, but the funds would accelerate the firm's overseas expansion. coming up as a fight for the pentagon cloud heats up amazon , introduce

that is the wrist strategic rationale. if you think about microsoft have always been a developer company. that is how we got started with the developer tools. now we are all in on open source. with that big -- but that coming together, that makes a lot of sense to us. we can country viewed a lot and stay true to the original a post of github. operatehow we will going forward, which is being developer first. emily: github has had issues finding a way to grow revenue significantly. they rsed $2 billion a few years ago. is microsoft going to do differently ty the $7. billion price tag? satya: we feel very good about the growth rate that github has. github starts, whether you are a hobbyist or student, or a small or a person working on a large company, wants a private thing to use github as a free service. they have done a good job of having the premium model going from the free service to paid ions for organizational use. we think we can scale that. by staying true to building that service up and making sure it is an open platform for all tools, all clou

we see the stock putting in all-time highs. microsofte of the bigg contributors. >> it was clearly a relationship there. think they went to being bought after that rather than going public? >> we have seen a number of take high-profile tech ipos. the ceoare saying that is one of the reasons. github is impressed by them. it could be difficult to go public without that kind of leadership. the price tag is impressive. billion, all stock deal. it was valued at $2 billion. microsoft is impressed and they are getting a good price. they will remain an independent company run by microsoft bycutive named by -- ran matt friedman. moving them deal toward that open approach of software. vonnie: thank you for that. and the next hour. caroline: as we prepare for bloomberg investor conference tomorrow, another highlight of growth. they have just supported the past. take a listen. >> what we are focused on is to help the people across europe that are parking. we want to help those people get into investment product. everyone is getting more concerned ab

i think microsoft has shown it's the new microsoft and they've done great and the new c.e.o.ub, matt friedman, really understands developerso i believe him when he says they will be maintainers of github. emily: what's so bad about github? >> nothing. emily: what about gitlab? sid: it's open court. you can host it yourself. but second, and i think most importantly, it's juode hosting. github you host your code. gitlab is the entire cycle. so all the way from planning something to rolling it out, continuing the registry, monitoring all in sangle product and that allows you to get the whole organization on the same page and that's why people are flocking to it. emily: part of the reason github sold is because they tried for years to develop a sustainable business but they were having trouble driving significant revenue, turning a profit. is your business going to be any different? sid: i think we're seeing great adoption. we closingure deals now and for the last five years we doubled incremental a.c.v. every year we're getting a lot -- emily: a.c.v.? sid: our revenues are close

so that's the real strategic rationale. if you think about microsoftwe've always been a developer first company. that's how we got started with the developer tools. now we're all in on open source. and so with that really becoming together, with microsoft then contribute a lot and stay true to the original ethos of github and that's how we'll operate going forward which is being developer first. emily: github has had issues finding a way to grow revenue significantly, turning a profit. they raised $2 billion just a few years ago. what is microsoft going to do differently to justify this $7.5 billion price tag? satya: you know, we feel very, very good about the growth rates github has. when it first started whether, you are a hobbyist, a student, or a small startup or a person working in a large company, to be able to use github as a free service and then they have done a good job having a premium model going from that free service to paid versions of it for organizational use. we think we can scale that by first staying true to building that service up

the u.s. and china. plus amazon is attempting another home device breakthrough. board.t alexa is on microsoft traveled to the coast of scotland to set up a data center like you have never seen before. we will take you down under. first the trump administration has reached a deal to get zte back in business. , zte has to pay a fine billion.$2.3 it also agrees to management changes eliminating a key sticking point. the deal has caused a bipartisan backlash with senators warner and rubio railing against it on the basis of national security. johnson backed them up to glisten. >> stealing our open electoral property and using it in their country, those are all things that i think this company historically has been guilty of. we have to approach it in a very measured and cautious way because clearly china has on surpassing and replacing the united states in the technological leader of the world and we should not help them do that. emily: selena talked to us about this zte deal. a lifeline for the company. they will have to pay a massive fine. they want to change their management and allow u.s. comp

this is soccer training on the microsoft hololens, teaching the rules through a mixed reality game, a to check you've been paying attention. there's some text but i can't actually read the text properly. it's not quite the right position. there's the goalkeeper, and it explains the offside position. the premise is good, i like the virtual players running about, but it feels like hard work to watch because naturally you want to watch the people, but you need to be actually reading the words. so i tried to kick a ball around, thinking about everything a robotic leg, a smart football and microsoft hololens experience had taught me. but through no fault of the tech, i'm still monumentally useless. stephen, look over there! 0h! i had to find some way! that's it for the shortcut of our world cup show. the full—length version is up on iplayer right now. next week, we're going to be in the united states for the e3 video game show in los angeles and elsewhere in the country too. in fact, by the time you see this we'll already be there tweeting @bbcclick so join us there tweeting @bbcclick so j

now, two of the biggest events at e3 are the microsoft and sony press extravaganzas and here are the new stuff for xbox fans. the show starting strong with a tease. climaxing in a glimpse of that helmet. we willjoin master chi on his greatest adventure yet, to save humanity. showcasing 50 games, the briefing was a riot of gun toting, rubber burning, puzzle solving, ninja sneaking, body slamming, alien exploding action. for when the fighting stopped and the fallout settled. iconic sequels came thick and ear—splittingly fast. games like fallout 76. devil may cry 5. and dying light 2. but the only one we'll be able to play this year, is forza racing. set in great britain with seasonal weather fronts to mix up the game play. what is it about us brits and talking about the weather? one of the biggest cheers came for gears 5, which introduced a female lead. a move that could cause controversy in certain online circles. one of the things i really love about gaming is that it really can unite all of us, across age, across gender, across geography. we're able to bring everybody together, play

we speak with the microsoft ceo. new scandal brewing at facebook after the company revealed shared user data with for chinese companies. we discussed the implications of this disclosure and get the reaction in washington with congressman greg walden of oregon. first to our top story. this week, apple held its worldwide developer conference in san jose, where tim cook welcome developers from around the world. happier tonot be announce we now have over 20 million apple developers around the world. that is more than ever before. while no new gadgets were announced apple is giving the , software that runs iphones and ipads overhaul. craig federighi announced i.o.s. 12. with improvements to the operating system performance and operability this coming in , addition to enhanced augmented reality apps and new tools to monitor and moderate tech addiction. the overall focus of their, improving speed, efficiency and making us even more connected to our devices and those devices more connected to each other. we were joined by our

now, two of the biggest events at e3 are the microsoft and sony press extravaganzas, and here are highlightsere was plenty of new stuff for xbox fans. the show starting strong with a tease, climaxing in a glimpse of that helmet. we willjoin master chief on his greatest adventure yet to save humanity. showcasing 50 games, the briefing was a riot of gun toting, rubber burning, puzzle solving, ninja sneaking, body slamming, alien exploding, action. for when the fighting is stopped and the fallout has settled... iconic sequels came thick and earsplittingly fast, games like fallout 76. not just walls, but hearts and minds... this is a trial from the heavens above. devil may cry 5. and dying light 2. once again, the world changes completely with the seasons... but the only one we'll be able to play this year is forza racing, set in great britain, with seasonal weather fronts to mix lay. what is it about us brits and talking about the weather? round these people up. i need help. one of the biggest cheers came for gears five which introduced a female lead, a move which could cause controversy in cer

that is the rear strategic rationale. about microsoft, we have always been a developer first company, that is how we got started, and now we are all in on open source. with that, the coming together of github and microsoft, it makes a lot of sense for us. we can contribute a lot and stay true to the original teeth those of github -- to the original ethos of github and that is how we will operate github -- developer first. billionithub raised $2 just a few years ago. dot is microsoft going to differently to justify the $7.5 billion price tag? satya: we had -- we feel bailey good about the growth rates that github has. whether you're a hobbyist or a student or a small startup or a person working in a large company, to be able to use github as a free service. they have done a good job of going a freemium model from that service to paid versions. we think we can scale that by first staying true to building that service up and making sure it is an open platform for all tools, all clouds, all platform targets. we think we can bring a lot in te

the consumer use. you could argue maybe this is why github is getting bought by microsoft instead of being the next microsoftson: if you're sitting down in silicon valley at google or facebook or apple, what is your reaction? paul: i think a lot of them -- the main cofler on git, the underlying software, works at google. i think a lot of them are just like ok. you saw it happening, those numbers are no longer crazy. i think it is just like it had to go somewhere, it had trouble getting a ceo. there was a lot of drama about the company four years ago. there was a harassment scandal. and also it's venture capital backed. is there has to be in a position. jason: at some point there was going to be some kind of exit? paul: exactly. they were talki to microsoft for a long time according to stakeholders, and i think everybody said, ok. carol: the key executives, it is a stock deal, so they are now becoming the biggest shareholders in microsoft. what say might they have in microsoft going forward? paul: oh, i don't know. microsoft's corporate structure, i don't know. now, it sounds like they may want everyone to ta

this is soccer training on the microsoft hololens, teaching the rules through a mix reality game, a lotd it properly. it is not quite right position. there is the goalkeeper and it explains the offside position. premise is good, i like the virtual players running about but it feels like hard work to watch because naturally you want to watch because naturally you want to watch the people, but you need to be the words. so i tried to kick a ball around, thinking about everything a robotic, smart football and microsoft hololens experience had taught me. but through no fault of the attack, i am still one immensely useless. stephen, look overthere! yes! i had to find some way! that is it for our world cup show. next week we will be in the united states for the g3 videogame show in los angeles, and elsewhere in the country too. in fact either time you see this we will already be there. we will be on twitter, have a look, see what we are up to. thanks for watching and we will see you in the states. hello. it looks like a fairly decent weekend ahead for many of us. we had very few showers throug

they can make sure the versions are right. microsoftbiggest user of github but the platform itself has been in some trouble. they've been looking for a ceo in alittle bit of disarray what's interesting here is that git, the underlying concept and idea for collaborationderneath forth by linus torvoltz. used to be enemy number one when it came to linux they reported the desire to control the word of coding it's this open source bottoms up, different kind of movement satya nadella has embraced open source, linux and nothing crystallizes that mo thais shoud i think perhaps not, if, a, micrcan maintain github and build up credibility even more credibility with the developer community, because that translates into good will microsoft has said they'll allow all open source projects, all the projects on github to flourish you don't have to build for microsoft. they're not changing all of that if they're seen as being a good steward of this, that can be hard to calculate. >> it's funny. so f ten yea ago, this would have almost been inconceivable

the day. and you gotta wonder when microsoft becomes fully valued, sarat. >> i think you're getting there, but actually what i like about the story is compared to a lot of its competitors, it has everything going for it in the sense of the cash flow, the balance sheet, the dividend, and they don't have really pieces of their business anymore that are holding them back. a lot of their competitors do. in this time where everybody else selling their tech, this is a good place to, quote, hide or even actually add to because i think you're going to be fine for the next few quarters. >> i also think you're seeing significant enterprise i.t. spending, and microsoft is a significant beneficiary of that and i don't think that cycle is over again, not i'm looking to do something like sell microsoft. i have the good fortune of being long microsoft from the mid-60s. i would stay with this company just maybe you want to hedge against it whether you're using the options market or something like that, but the cycle continues. i think saratd is right. i think the balance sheet is incredible, a tremendous amou

the boss of xbox tells why its new games line—up is key to microsoft catching up with market leader sonyand on the markets... in asia they are trading right now and you can see they are higher, traders watching and waiting to see the fallout of the g sevens but in real terms. —— g7 spat. let's look at the trade turmoil in more detail. global markets are waking up to trade turmoil after president trump's meltdown at the group of seven summit in canada over the weekend, the most acrimonious g7 to date. it left us allies reeling with europe and canada threatening counter—measures against us tariffs and german chancellor angela merkel calling it sobering and depressing. hopes to smooth out trade tensions and tackle protectionism were dashed, with the us president renewing his threat to slap tariffs on cars imported into the us. let's just remind you, on ijune the us decided to impose a 25% tariff on steel and a 10% levy on imports of aluminium. the eu, canada and japan, who all attended the summit, had hoped to get exemptions from the tariffs, but the white house has held firm. america's two

sweeping microsoft into the firestorm into the trump administration immigration policy. denounced that policy. calling on past legislation and ensuring children are not separated from the families. the rise of conscience capitalism. putting their support behind social issues like gay marriage and gun control and immigration. this would be a front in the corporate activism. >>> the white house is threatening tariffs on $200 billion in chinese goods. this follows the $50 billion it announced last week. punishment for china stealing u.s. tech and trade secrets. beijing outlining tariffs on exports. the president promises to impose the additional tariffs if they follow through. writing that further action must be taken to encourage china to chain the unfair practices. china once again promised to strike back accusing the u.s. of pressure and extortionist behavior. the tariffs are shaking global markets. asian stocks at a four-month low. dow is down 400 points. >>> breaking news. kim jong-un going to china today and tomorrow. he is expected to brief xi jinping about his summit

>> i think that when the ceo of microsoft and jeff wiener first started to talk about the acquisitiongned on a common objective of growing and accelerating the growth of linkedin leaving it standalone. >> hold on we have breaking news that we have got to get. ayman jafrs has it. >> the president called the pool of reporters in to the white house speaking to them now we'll see this comment coming out on tape here in a moment but we are told that the president said that he's going to be signing something on family unification. he said that republicans want security and also want to keep families together amid this crisis at the southern border. the president says he's signing something later today that is going to keep families together. he also says that he'll do something preemptive and hopes it will be matched by legislation, he says later from congress he also said he's canceling the congressional picnic and didn't feel right to him at this point in time. the president still talking so we'll hear from him shortly. but he is signaling that he's going to be signing something that's go

things are very, very different in the height of the microsoft —— migrant crisis three yea rs microsoft of arrivals is down to an extent that most countries haven't been affected and have been able to simply look the other way. so what has changed all of a sudden? well, the migrant crisis for europe in 2018 is about a change in politics, not a change in migrant arrival numbers. suddenly, two of the main countries that have been deal with the migrants that have still come, that is germany, on the one hand, who takes the largest number, and italy on the other, where most votes arrived, they have turned around and said no more. both countries have voted to be increasingly worried about migration and both have seen the rise of different extent to tougher migration politicians. two—day summit, both countries turned around and said we are all in this together 5°ppy and said we are all in this together soppy but the response they got today and the same that you will expect to see at the end of this week at a formal summit of all eu leaders in brussels is that eu leaders in brussels is that eu

children from their parents of the border yes i'm talking from hewitt hewlett packard to reuters the microsoft of facebook's own peter thiel was rather some call slippery data firm pal and here is taken in more than four point nine million from ice as recently as may thirtieth as m b c news once again reports according to a government database search the contract goes towards operations and maintenance of falcon palin tears proprietary intelligence database that tracks immigrants records and relationships this of course comes as facebook executives like c.e.o. mark zuckerberg and the old fellow board members sheryl sandberg criticized the family separation policy and pledged to use the social media giant to stage a multimillion dollar fundraiser for immigrant children. yes corporate apoc received knows no bounds even when it comes to traumatize families and abused kids i would start watching the hawks. to. get the. real thing. as it were to pull out of it. what they like you know that i got. the. welcomer on the watch of the hawks i am tyrrel but for them to have a long list. and i wish i coul

up in 0rkney, the tech giant microsoft is trying to do just that. puters. it was assembled in france, and then brought here to be sunk. we're on our way across scapa flow to the deployment site, but i have one nagging question. why sink a data centre? it's easier to cool data centres in water than on land. that means we use a lot less power to cool the data centre than we otherwise would. it is kind of a crazy experiment, but that's why we do research — to try these things and sort of push us to new places. and, if this is successful, maybe we'll have the ability to deploy data centres anywhere in the world very rapidly, perhaps as little as 90 days. this is the exact point where the data centre is going to be sunk and on the ocean floor is a cable bringing power to it, and then taking its data ashore and connecting it to the wider internet. a day on, with conditions in this sometimes rough stretch of sea very calm, the painstaking operation to put the data centre on the ocean floor is under way. 0rkney was chosen partly because it is a centre for pi

so that's the real strategic rationale. if you think of microsoft developer first company. that's how we got started with the developer tools. now we're all in on open source. and so with that really becoming together github and microsoft makes a lot of sense for us. we can contribute a lot and stay true to the original ethos of github and that's how we'll operate going forward which is being developer first. emily: github has had issues finding ways to grow significantly, turn a profit. they had $2 billion just a few years ago. what will microsoft do differently to justify this $7.5 billion price tag? >> you know, we feel very, very good about the growth rates github has. whether you are a student, small staup, a -- first working in a large company, to be able to use github as a free service and then they have done a good job having a premium model going from that free service to paid for organizational use. we think we can scale that by first staying true to that service up and making sure it's an open platform for all tools, all clouds, all platf

just some of the the companies will run it out here's a hewlett packard birch rises us your printers i believe thomson reuters microsoft motorola solutions and power below are just some of the companies some of the companies with these ice contracts in the last year or two years last couple months even as early as may we're talking about it and we're really jumps out to me is this rather like a slip really interesting little company problem tear right here thiel and if you don't know what peter thiel billionaire you know shuts down entire news organizations because they said mean things about him on the internet i guess yeah so you know. one of the ones i think that sort of struck me that was so odd was reuters. is. this idea. between powell and here and reuters now pelletier is one that we don't really know much about the things you might be going what the heck is this i've never heard of it so this is a pal and here is a cia backed firm that is used by law enforcement across the country so sheriff's departments marshals all of law enforcement it's behind. a very controversial set of software and we've talked about it

the cloud act is two basic things. one, there is a supreme court case, commonly called microsoft the island. microsoft is challenging a probable cause warrant that is seeking records, dated that is -- data that is physically stored overseas. that case, microsoft's argument in that case is effectively that the law that permits email warrant does not apply extraterritoriality. the cloud act answers that question in the affirmative. it says that an email provider must disclose to the government those emails, regardless of where the data is, whether in the united states are overseas. -- or overseas. it also has a second part, which would deal with what are called mutual legal assistance treaties. so if another country wants law enforcement assistance here or if we want law enforcement assistance abroad, there is a system right now where you go through, in many cases, the other country would come here, the department of justice would go and get a warrant and get the information and send it overseas. this would create a system where the department of justice, with the concurrence of the state depar

microsoft's head of gaming julia. >> morgan, that's right. new and exclusive content and easy access to that content was the focus of microsoft's big xbox announcements microsoft showcased 52 new games. 18 of which will be exclusive to xbox, also announcing it's buying five game studios microsoft's head of gaming phil spencer telling us about the growing importance of its game pass subscription service, $10 a month, to which it's adding new content and features >> what we're seeing today in gam pass is not only an expansion in subscribers but the people who subscribe play more games. it drives higher engagement. >> with epic games fortnite taking the gaming world by storm on both consoles and mobile devices he tells us thgame's success has been a win for microsoft >> fortnite has been a huge success for epic games it's great to see that we love when big hit games do very well on our platforms we're seeing that, we're continually working with epic about how to make that game even bigger they're doing a lot of e sport work this year exxbox has always been a great place for games. >> fortnite's success poses a threat to rival game makers including elect