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How Microsoft’s customers and partners accelerated AI Transformation in FY25 to innovate with purpose and shape their future success


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Over the past fiscal year, our customers and partners have driven pragmatic outcomes by implementing AI-first strategies across their organizations. With AI Transformation as their framework, we helped them enrich employee experiences, reinvent customer engagement, reshape business processes and bend the curve on innovation for their people, businesses and industries. Now, we are partnering to go beyond what they thought possible to unlock even greater potential by restructuring and centralizing their business strategies with an AI-first mindset. Our cloud and AI capabilities are leading the industry, and we are committed to working closely with our customers and partners to meet their increasingly complex needs and help them become frontier AI firms.

Below are several stories from the past quarter reflecting the success we have seen broadly this past year. Each showcases what we can achieve together with an approach grounded in AI business solutions, cloud and AI platforms, and security.

AI is blurring the lines between personal and organizational productivity, and we are helping our customers leverage Copilots and agents combined with human ambition to create differentiation.

With over one million customers in Argentina, Banco Ciudad launched a digital transformation initiative focused on AI, productivity and security. What began as a pilot program quickly grew into broad adoption with the bank implementing Microsoft 365 Copilot to improve productivity, Microsoft Copilot Studio to develop agents and Microsoft Azure to scale their AI solutions. As a result, the bank strengthened its operational resilience, empowered teams, drove sustainable growth and improved customer engagement — even in a challenging economic environment. So far, the bank has freed up 2,400 employee work hours annually with savings projected to generate $75,000 USD monthly.

As one of the country’s largest financial institutions, Commonwealth Bank of Australia is harnessing AI to meet rising customer expectations by developing smarter, more secure and highly customizable banking experiences at scale. To ensure employees have the confidence and expertise to leverage AI effectively, the bank launched a structured skilling initiative to empower them with the knowledge needed to adopt AI effectively. Eighty-four percent of 10,000 Microsoft 365 Copilot users reported they would not go back to working without it; and nearly 30% of GitHub Copilot code suggestions were adopted, driving efficiency and smarter decision-making.

Nonprofit Make-A-Wish is dedicated to granting hope by fulfilling wishes for children with critical illnesses across the United States. Fragmented systems, limited data access and the need to protect sensitive information were creating challenges for the organization to operate effectively, so it turned to partner Redapt for support. Make-A-Wish deployed comprehensive Microsoft cloud and AI solutions — including Azure Cloud Services, Microsoft Fabric, Microsoft 365 Copilot and Copilot Studio — to unify its data, rebuild core applications and boost staff productivity. This transformation enabled the organization to increase operational efficiency, improve collaboration across national and regional chapters and strengthen its data security to protect sensitive family data.

Sheló NABEL, a wellness and beauty company based in Mexico, faced operational challenges as it expanded its network of independent entrepreneurs. With support from partner Best Practices Consulting, the company integrated Microsoft Dynamics 365 to gain real-time market insights and optimize its demand planning across more than 400 products. They also integrated Microsoft Copilot to enhance customer service and increase operational efficiency with AI. As a result, the company has achieved a 17% increase in sales, 5X faster reporting processes and real-time inventory control.

Based in Saudi Arabia, technology and communications company Unifonic serves millions of people across 160 countries. As their business began to scale rapidly, they faced challenges managing a growing hybrid workforce while maintaining strong security and compliance standards. To solve this, the company deployed Microsoft 365 E5 and Microsoft 365 Copilot to automate workflows and secure data in one platform. This unified ecosystem enabled teams to reduce time spent on audits by 85%, save two hours per day on cybersecurity governance, save $250,000 USD in costs and reduce time to set up client demos by 15%.

Microsoft has the leading cloud platform for AI innovation with Azure as the infrastructure, Azure AI Foundry as the applications server and Fabric as the data platform.

As legal professionals face challenges with manual data entry, document generation and compliance-heavy processes, Assembly Software aimed to transform how they handle complex, time-consuming workflows. Using Azure AI Foundry, the company built NeosAI — a fully embedded generative AI solution that automates nearly every aspect of the legal workflow — from document intake to drafting and reporting. As a result, law firms using NeosAI report saving up to 25 hours per case, with document drafting time reduced from 40 hours to just minutes. This AI solution is not only boosting productivity and reducing stress for legal professionals but also enabling firms to serve more clients with greater speed and accuracy.

One of the world’s oldest continuously operating companies, Husqvarna Group, faced increasing pressure to modernize its network of factories, supply chains and distribution channels to stay competitive in a rapidly evolving landscape. The company implemented a comprehensive Microsoft Azure solution — including Azure Arc, Azure IoT Operations and Azure OpenAI — to unify cloud and on-premises systems, enable real-time data insights and drive innovation across global manufacturing operations. As a result, the company achieved a 98% reduction in data deployment time, cut infrastructure imaging costs by 50% and significantly improved productivity and uptime across its connected factories.

Serving over 600,000 members in the United States, Members 1st Federal Credit Union sought to modernize its data infrastructure to deliver more personalized member experiences and support data-driven decision-making. The credit union faced challenges with siloed data across more than 15 sources and legacy systems with limited analytics capabilities. With support from partner 3Cloud, the credit union combined Azure SQL, Azure Data Factory and Azure Databricks to extract, log and centralize enterprise-wide data into a cutting-edge data lakehouse. Machine learning models that took 36 hours to run can now be done in three to four hours — a reduction of about 89%. Additionally, updates within its customer relationship management software now take 30 to 40 minutes compared to three to four hours previously.

NTT DATA, a global IT and business services leader headquartered in Japan, sought to accelerate decision-making and unlock deeper insights by overcoming limitations of legacy dashboards and siloed data systems. Serving clients in over 50 countries, the company needed a more intuitive, scalable and AI-driven approach to data access and analysis. NTT DATA deployed Microsoft Fabric, Azure AI Foundry Agent Service and Azure AI Foundry to enable the creation of conversational AI tools that allow employees to retrieve and act on real-time data. This agentic AI platform significantly improved productivity, reduced time to market for new solutions by 50% and laid the foundation for broader adoption of multi-agent frameworks across the organization.

University of Venda, a public higher education institution in South Africa, modernized its IT infrastructure to support its strategic goal of producing globally competitive graduates while meeting the evolving needs of its regional and international students. Facing challenges with aging on-premises servers, frequent service interruptions and a six-month hardware procurement cycle, the university sought a more agile and reliable solution. By deploying Microsoft 365, migrating 18 systems to Microsoft Azure and leveraging Microsoft Unified Support, the university achieved 99% service uptime and reduced resource provisioning time from six months to under 12 hours. This transformation significantly improved system reliability, scalability and security, enabling students and staff to access essential services seamlessly from anywhere. 

Security is the foundation for AI Transformation. We are helping our customers and partners defend against threat actors and secure their environments with Microsoft’s cloud and AI solutions. 

Following its spinoff from Eli Lilly, Elanco sought to modernize its IT and security infrastructure by building a secure, scalable digital environment from the ground up. The company deployed a comprehensive Microsoft solution stack comprised of Microsoft 365 E5, Microsoft Defender suite, Microsoft Sentinel, Microsoft Intune and Microsoft Security Copilot. This integrated approach streamlined global IT operations across 90 countries, enabling Elanco to accelerate security response times by 50% with a future-ready, secure and efficient digital ecosystem that empowers their workforce.

Kern County faced significant challenges securing and governing their data across 40 departments — each operating with fragmented IT systems. With an approach grounded in data protection, the county deployed Microsoft Purview as part of its Microsoft 365 Government G5 suite. The implementation resulted in the classification of over 13 million files, near-total adoption of sensitivity labels and over 3,000 data loss prevention alerts in a single month. A validation assessment also showed the county saved about $1 million in mitigation risk and potential noncompliance. This transformation strengthened audit readiness, reduced data exposure risks and laid a secure foundation for future innovation.

Headquartered in the Czech Republic, Mews provides cloud-based property management solutions to help modernize hotel operations worldwide. As it scaled its platform to serve thousands of properties worldwide, the company faced increasing cybersecurity threats and sought to strengthen its security posture and streamline threat detection. By deploying Microsoft Sentinel, Microsoft Defender for Cloud, Microsoft Entra ID and Microsoft Security Copilot, they enabled real-time monitoring, automated threat response and centralized visibility across its cloud infrastructure. As a result, the company reduced incident response times from hours to minutes and enhanced its ability to meet stringent compliance requirements to ensure secure growth in a highly regulated industry.

Puritan Life Insurance Company of America transformed its business model by launching Canvas Annuity — a direct-to-consumer digital distribution platform built entirely on Microsoft Azure. With the security features built into the technology out of the box, the team can detect and block malware attacks and threats, manage security efficiently and more easily pass regulatory, financial and information security audits. By creating a secure, scalable and user-friendly platform, customers can now purchase annuities online in just 10 minutes — a speed previously unheard of. Since launching, the company has seen a 700% increase in annual premium revenue, with the platform now accounting for 75% of premiums every year.

Facing growing cyber threats to its research, Singapore Management University needed to maintain seamless access for students and faculty while ensuring compliance with the country’s stringent data privacy regulations. The university implemented Microsoft’s Zero Trust framework by integrating Microsoft Security Copilot with Microsoft’s comprehensive security suite to strengthen protection while maintaining academic accessibility. This helped reduce response times and ease workloads for security teams while also supporting security analysts to streamline incident investigations, summarize complex multistage attacks and receive guided response recommendations in real time. The integrated security solution reduced operational costs and enhanced compliance reporting while maintaining seamless access to research resources.

For additional AI Transformation stories, check out AI-powered success—with more than 1,000 stories of customer transformation and innovation.

I could not be more excited by our mission than I am today — and I believe we have never been closer to bringing it to life than we are right now. With Microsoft’s leading technology and expertise, we are helping our customers and partners implement AI to bring out the best in individuals, organizations and companies. We are partnering to reinvent their business strategies and move beyond AI adoption alone to innovate with purpose and shape their futures as frontier AI firms. The opportunity to differentiate your business through AI Transformation and pave the way for industry leadership is now.

The post How Microsoft’s customers and partners accelerated AI Transformation in FY25 to innovate with purpose and shape their future success appeared first on The Official Microsoft Blog.



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Recommitting to our why, what, and how


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Satya Nadella, Chairman and CEO, shared the below communication with Microsoft employees this morning.

As we begin a new fiscal year, I’ve been reflecting on the road we’ve traveled together and the path ahead.

Before anything else, I want to speak to what’s been weighing heavily on me, and what I know many of you are thinking about: the recent job eliminations. These decisions are among the most difficult we have to make. They affect people we’ve worked alongside, learned from, and shared countless moments with—our colleagues, teammates, and friends.

I want to express my sincere gratitude to those who have left. Their contributions have shaped who we are as a company, helping build the foundation we stand on today. And for that, I am deeply grateful.

I also want to acknowledge the uncertainty and seeming incongruence of the times we’re in. By every objective measure, Microsoft is thriving—our market performance, strategic positioning, and growth all point up and to the right. We’re investing more in CapEx than ever before. Our overall headcount is relatively unchanged, and some of the talent and expertise in our industry and at Microsoft is being recognized and rewarded at levels never seen before. And yet, at the same time, we’ve undergone layoffs.

This is the enigma of success in an industry that has no franchise value. Progress isn’t linear. It’s dynamic, sometimes dissonant, and always demanding. But it’s also a new opportunity for us to shape, lead through, and have greater impact than ever before.

The success we want to achieve will be defined by our ability to go through this difficult process of “unlearning” and “learning.” It requires us to meet changing customer needs, by continuing to maintain and scale our current business, while also creating new categories with new business models and a new production function. This is inherently hard, and few companies can do both.

But I have full confidence that we can, and we will once again find the resolve, courage, and clarity to deliver on our mission in this new paradigm.

With that context, I want to re-ground ourselves in our why, what, and how: our mission, our priorities, and our culture.

Our why: mission 

What does achieving our mission look like and feel like for us as a company? When Microsoft is succeeding, the world around us must succeed too. This is why each of us chose to be here, and as a company it’s how we earn our social permission to operate. When Bill founded Microsoft, he envisioned not just a software company, but a software factory, unconstrained by any single product or category. That idea has guided us for decades. But today, it’s no longer enough.

We must reimagine our mission for a new era. What does empowerment look like in the era of AI? It’s not just about building tools for specific roles or tasks. It’s about building tools that empower everyone to create their own tools. That’s the shift we are driving—from a software factory to an intelligence engine empowering every person and organization to build whatever they need to achieve.

Just imagine if all 8 billion people could summon a researcher, an analyst, or a coding agent at their fingertips, not just to get information but use their expertise to get things done that benefit them. And consider how organizations, empowered with AI, could unlock entirely new levels of agility and innovation by transforming decision-making, streamlining operations, and enabling every team to achieve more together than ever before.

That’s the empowerment our mission enables, creating local surplus in every company, community, and country. And that’s our opportunity ahead.

Our what: priorities 

To deliver on our mission, we need to stay focused on our three business priorities: security, quality, and AI transformation.

We are doubling down on the fundamentals while continuing to define new frontiers in AI.

Security and quality are non-negotiable. Our infrastructure and services are mission critical for the world, and without them we don’t have permission to move forward.

We’ve made substantial progress across SFI, QEI, and Engineering Thrive this year, and they remain top priorities to ensure that we continuously improve our innovation velocity and our operational metrics.

We will reimagine every layer of the tech stack for AI—infrastructure, to the app platform, to apps and agents. The key is to get the platform primitives right for these new workloads and for the next order of magnitude of scale. Our differentiation will come from how we bring these layers together to deliver end-to-end experiences and products, with the core ethos of a platform company that fosters ecosystem opportunity broadly. Getting both the product and platform right for the AI wave is our North Star!

Our performance this past year has positioned us well. And we must move forward with the intentionality and intensity that these industry shifts demand.

Our how: culture

Growth mindset has served us well over the last decade—the everyday practice of being a learn-it-all, not a know-it-all. It has reshaped our culture and helped us lead with greater humility and empathy. We need to keep that.

It starts with each of us as individuals and our personal drive to learn, improve, and get better every day. Professional rewards, growth, and pride in our craft will always be the prime drivers. Beyond that, we each have the opportunity to connect our personal passion and philosophy of how we derive meaning from the work we do with Microsoft’s mission to empower the world. This is what makes it all worthwhile.

This platform shift is reshaping not only the products we build and the business models we operate under, but also how we are structured and how we work together every day. It might feel messy at times, but transformation always is. Teams are reorganizing. Scopes are expanding. New opportunities are everywhere. It reminds me of the early ’90s, when PCs and productivity software became standard in every home and every desk! That’s exactly where we are now with AI.

Years from now, when you look back at your time here, I hope you’ll say: “That’s when I learned the most. That’s when I made my biggest impact. That’s when I was part of something transformational.”

What we’ve learned over the past five decades is that success is not about longevity. It’s about relevance. Our future won’t be defined by what we’ve built before, but by what we empower others to build now.

And I know that with your dedication, drive, and hard work we can go win together, and change the world in the process.

I look forward to sharing more at Earnings next week and addressing your questions at our next Town Hall.

Satya

 

The post Recommitting to our why, what, and how appeared first on The Official Microsoft Blog.



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