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CNBC Exclusive: CNBC Transcript: Microsoft CEO Satya Nadella and GE CEO Jeff Immelt Speak with CNBC’s Jon Fortt on “Squawk on the Street” Today

WHEN: Monday, July 11th

WHERE: CNBC's "Squawk on the Street"

Following is the unofficial transcript of a CNBC EXCLUSIVE interview with Microsoft CEO Satya Nadella and General Electric CEO Jeff Immelt live from the Microsoft Worldwide Partner Conference in Toronto today on CNBC's "Squawk on the Street" (9AM-11AM ET). Following are links to video of the interview on CNBC.com: http://video.cnbc.com/gallery/?video=3000533211; http://video.cnbc.com/gallery/?video=3000533215; http://video.cnbc.com/gallery/?video=3000533221; http://video.cnbc.com/gallery/?video=3000533216; and http://video.cnbc.com/gallery/?video=3000533222.

All references must be sourced to CNBC.

FORTT: HEY, CARL, THANKS. I'M HERE WITH SATYA NADELLA AND JEFF IMMELT. THANKS FOR SITTING DOWN WITH US. BIG ANNOUNCEMENTS TODAY AROUND THE CLOUD FOR BOTH OF YOU. SATYA, I WANT TO START WITH YOU TO PUT THIS INTO SOME CONTEXT. IT'S CLEAR WHAT'S IN THIS FOR GE. I THINK THEY HAD A $5 BILLION DIGITAL BUSINESS LAST YEAR PLANNING FOR $15 BILLION BY 2020. HOW DO YOU MAKE THIS WORK FOR MICROSOFT AND TURN IT INTO A DEAL THAT BOOSTS THE OTHER CLOUD BUSINESSES AS WELL.

NADELLA: YOU KNOW FOR US IN FACT WE ARE RIGHT HERE AT A PARTNER CONFERENCE AT MICROSOFT. WE ARE A PLATFORM COMPANY AT THE CORE. WHEN WE THINK ABOUT WHAT A PLATFORM COMPANY DOES, IT CREATES AN OPPORTUNITY FOR OTHER SOFTWARE AND OTHER PLATFORM COMPANIES AND GE NOW WITH PREDIX THEY ARE BUILDING OUT THEIR OWN PLATFORM. SO THE COMBINATION OF AZURE AND PREDIX IN FACT CREATES A HUGE OPPORTUNITY FOR ALL THE PARTNERS AT THIS CONFERENCE TO BE ABLE TO BUILD THE INTERNET OF THINGS AND INDUSTRIAL INTERNET SOLUTIONS. AS PART OF THE SOLUTIONS, THEY WOULD WIRE IN THINGS LIKE MICROSOFT DYNAMICS, OFFICE 365 AND ALL OF THE OTHER PARTNER SOLUTIONS. TO ME, IT'S THAT COMBINATION OF PLATFORM CAPABILITIES THAT I THINK WILL SHAPE THE INDUSTRIAL INTERNET.

FORTT: CAN WE THINK OF IT AS THIS BEING A POTENTIAL INDUSTRIAL AND ENTERPRISE ON RAMP TO MICROSOFT'S FULL CLOUD IN A SIMILAR WAY THAT LINKEDIN WOULD BE MORE OF AN INDIVIDUAL CONSUMER ON RAMP TO THINGS LIKE 365.

NADELLA: FOR SURE I MEAN THE PROFESSIONAL NETWORK AS AN ONRAMP TO OFFICE 365. THAT'S THE LINKE IN OFFICE 365 LINKEDIN DYNAMICS. BUT THE WAY WE ALWAYS THOUGHT ABOUT PARTNERSHIPS IS WHAT ARE THE COMPANIES THAT ARE INNOVATING IN SOFTWARES. BUILDING SOLUTIONS THAT WE CAN PARTNER AS A PLATFORM PROVIDER. IN THE PAST IT WAS MOSTLY ABOUT TECH COMPANIES. NOW EVERY COMPANY IS A TECH COMPANY. GE IS A DIGITAL COMPANY BUILDING DIGITAL SOFTWARE WITH PREDIX. SO LIKE IN THE PAST, SAP WAS A BIG PARTNER OF OURS. GOING FORWARD, OF COURSE. SAP WILL CONTINUE TO BE A PARTNER BUT GE WOULD BE IN THE SAME CLASS.

FORTT: JEFF TALK TO ME ABOUT THAT A BIT. GE HAS TRADITIONALLY BEEN A HUGE TECHNOLOGY CUSTOMER. YOU ARE BECOMING MORE AND MORE OF A TECHNOLOGY PLAYER IN YOUR OWN RIGHT. WHAT ARE THESE CLOUD PROVIDERS GOING TO DO TO DISTINGUISH THEMSELVES WORKING WITH YOU SO THEY DON'T END UP OFFERING COMMODITIZED SERVICES. DOESN'T MATTER IF YOU ARE ON AZUR, AMAZON OR ON ORACLE. WHAT IS GOING TO DISTINGUISH

IMMELT: YOU HAVE BEEN COVERING IT A LONG TIME AND SATYA KNOWS THIS. THERE WILL BE MULTIPLE ALLIANCES AS THIS BUILDS OUT. FOR US, HAVING A RELATIONSHIP WITH MICROSOFT DOES TWO THINGS REALLY. ONE, ALLOWS US TO GO FASTER. IN THE INDUSTRIAL WORLD THIS WILL BE CUSTOMER BY CUSTOMER, COUNTRY BY COUNTRY. HAVING AZURE'S PRESENCE IN A LOT OF DIFFERENT PLACES AROUND THE WORLD, BEING ABLE TO BUILD OUR PLATFORM ON TOP OF THE PLATFORMJUST ALLOWS US TO GO FASTER. I THINK THE OTHER THING IS THERE IS A BRIDGE BETWEEN ENTERPRISE AND INDUSTRIAL. EVERY CHIEF INFORMATION OFFICER WILL HAVE TO WALK. THEY WILL HAVE TO BE MORE COMFORTABLE WITH OPERATIONS TECHNOLOGY. I THINK MICROSOFT --

FORTT: GOOD EXAMPLE OF WHAT KIND OF USE.

IMMELT: SURE. TAKE A RAILROAD. THEY HAVE BEEN BUYING ERP SYSTEMS. THEY HAVE MICROSOFT OFFICE IN THEIR OFFICES. NOW THEY WANT TO DO A MOVEMENT PLANNER TO HELP THEM SCHEDULE LOCAMOTIVES. THAT'S OPERATIONS TECHNOLOGY. IT'S EASIER FOR THEM IF THEY HAVE ONE CLOUD PROVIDER. EASIER IF THEY ARE ABLE TO PUT PREDIX ON TOP OF AZURE OR SOME OTHER NETWORK THEY ARE MORE COMFORTABLE WITH. AND THEN MULTIPLY THAT BY EVERY AIRLINE, UTILITY. EVERYBODY ELSE. THERE WILL BE LOTS OF ALLIANCES LIKE THIS AS TIME GOES ON.

FORTT: AND YOUR SOFTWARE IS GOING TO HELP LITERALLY THE TRAINS RUN ON TIME AND MAKE SURE THEY DON'T BREAKDOWN.

IMMELT: WE ARE PULLING DATA OFF THE EQUIPMENT. WHAT WE CAN DO IS ADD THAT WITH USE DATA. WE ARE COMING AT THIS FROM THE ASSET OF. MICROSOFT IS COMING AT IT FROM ENTERPRISE ACROSS. WE INTERSECT IN THESE INDUSTRIAL CUSTOMERS. YOU KNOW THE DIFFERENCE IS THAT THE INDUSTRIAL WORLD IS DONE IN UNITS OF ONE. THESE PEOPLE COMPETE WITH EACH OTHER THEY ARE IN DIFFERENT COUNTRIES. HAVING THE ARMS AND LEGS THAT SOLVE THESE PROBLEMS GLOBALLY IS SOMETHING THAT TAKES SOMETHING THAT TAKES SCALE TO PROVIDE. MICROSOFT HAS THAT, GE HAS THAT.

FORTT: JEFI WANT TO ASK ABOUT GLOBALIZATION. YOU GAVE AN INTERESTING COMMENCEMENT ADDRESS. IN PART OF IT YOU SAID WE WILL PRODUCE FOR THE U.S. IN THE U.S. BUT OUR EXPORTS MAY DECLINE. I THINK YOU WERE TALKING ABOUT SOME OF THE PROTECTIONIST POLICIES SPRINGING UP EVERYWHERE. AT THE SAME TIME WE'LL LOCALIZE PROTECTION IN BIG END USE MARKETS LIKE SAUDI ARABIA AND COUNTRIES WITH EFFECTIVE EXPORT BANKS LIKE CANADA WILL BE MORE ATTRACTIVE FOR AN INVESTMENT. THAT SOUNDS LIKE A WARNING THAT IF U.S. POLICIES CONTINUE TOWARD PROTECTIONISM BOTH HIRING AND CAPITAL SPENDING ARE GOING TO SHIFT OUTSIDE.

IMMELT: EVERYBODY LOOKS AT THESE TRADE DEALS AND THINGS TO BE FROM MICROSOFT, GE OR BIG COMPANIES. WE HAVE GLOBALIZED ALREADY. WE HAVE 400 FACTORIES AROUND THE WORLD. MICROSOFT IS IN EVERY COUNTRY AROUND THE WORLD. THESE TRADE DEALS HELP SMALL NOT BIG COMPANIES. WE ARE FOR THE EXPORT, IMPORT BANK. IF THERE IS NO IMPORT-EXPORT BANK WE'LL MOVE PRODUCTION AROUND THE WORLD AND TAKE ADVANTAGE OF EXPORTBANKS IN EUROPE AND OTHER PLACES. I THINK SMART GLOBAL COMPANIES HAVE VERY SMART LOCAL STRATEGIES THAT ALLOW THEM TO CONTINUE TO GROW WHILE POLITICS EBB AND FLOW IN EVERY CORNER OF THE WORLD ALLOWS US TO SERVE OUR CUSTOMERS GLOBALLY.

FORTT: AND SATYA WE ARE HEADING INTO THE SEASON WHERE WE ARE GOING TO HAVE THE DEMOCRATIC, REPUBLICAN CONVENTION, A LOT OF POLICY IS GOING TO GET DISCUSSED. WHAT ARE A COUPLE OF ISSUES. NOT GOING TO ASK YOU TO PICK A CANDIDATE I KNOW THAT IS STICKY. WHAT ARE A COUPLE OF ISSUES THAT AS THE CEO OF ONE OF AMERICA'S BEST KNOWN BRANDS, THE BIGGEST BUSINESSES. YOU ARE GOING TO BE LOOKING FOR. BECAUSE IT WILL BE IMPORTANT FOR MOVING NOT JUST MICROSOFT BUT ALSO YOUR EMPLOYEES' LIVELIHOODS FORWARD.

NADELLA: GREAT QUESTION. THERE ARE MANY ISSUES. I TALKED TO ALL THE POLITICIANS ON BOTH SIDES OF THE AISLE EVERY DAY. WHETHER IT'S IMMIGRATION, PATENT REFORM OR TRADE. QUITE FRANKLY RIGHT NOW WHAT I'M LOOKING FOR IS THE POLITICS IN OUR COUNTRY TO GET TO A PLACE WHERE PEOPLE CAN WIN ELECTIONS BY MAKING A CASE FOR BOTH GLOBALIZATION AND ADDRESSING THE INEQUITIES THAT DO EXIST IN OUR SOCIETY. THAT'S WHERE WE NEED TO GET TO. IT CAN'T BE ONE VERSUS THE OTHER. IT HAS TO BE HOW DO WE BALANCE THE TWO SUCH THAT WE CAN TRULY HAVE THE RIGHT DIALOGUE FOR THE PROGRESS OF THE COUNTRY. AMERICA HAS TO BE THE BEACON OF PROGRESS, WHERE BOTH THE INEQUITIES IN SOCIETY ARE ADDRESSED AND AT THE SAME TIME, WE CAN'T SHUT THE WORLD OUT.

FORTT: JEFF DO YOU SEE THAT THE SAME WAY AND WHAT KIND OF MESSAGE DO YOU FEEL WE NEED TO HEAR TO GET AT THAT IF SO?

IMMELT: I WOULD SAY THREE THINGS. REALLY THREE THINGS. SECURITY. THERE ARE OTHER PEOPLE SMARTER THAN THE TWO OF US. TO WORK ON GEO POLITICS.

FORTT: NOT MANY BUT OK.

IMMELT: CLOSE. IN OTHER WORDS 2% GDP GROWTH WON'T GET IT DONE. WE HAVE TO HAVE MORE PRO GROWTH POLICIES. 5% OF THE WORLD POPULATION IN THE U.S. 25% OF THE WORLD'S GDO. WITHOUT GLOBALIZATION, THAT DOESN'T END WELL FOR A COUNTRY LIKE THE UNITED STATES. PRO GROWTH POLICIES AND UNITY. I THINK ALL OF US WANT TO SEE MORE CONSTRUCTED DIALOGUE THAT TAKES PLACE BETWEEN BUSINESS, GOVERNMENT, SOME OF THE TRAGEDIES THAT HAVE TAKEN PLACE RECENTLY. I WOULD SAY I LOOK FOR WHICH CANDIDATES WILL PROVIDE SECURITY, GROWTH, UNITY. THAT HELPS MOST PEOPLE. EVERYBODY.

FORTT: AND SATYA WHEN YOU LOOK AT THE MORE PROTECTIONIST MOVES AS SOME SEE THEM. AS YOU LOOK AT BREXIT, DOES THAT MAKE IT MORE EXPENSIVE TO DO BUSINESS GLOBALLY? IF SO, WHO WILL END UP BEARING THE COST? DO YOU HAVE TO RAISE PRICES FOR YOUR SERVICES AND SOFTWARE IN VARIOUS MARKETS? HOW DOES THAT PLAY OUT?

NADELLA: LOOK. IN FACT, THAT'S THE REAL WORLD TO ME. THEY ARE LEGITIMATE DIGITAL SOVEREIGNTY NEEDS, DIGITAL SECURITY NEEDS THAT COMPANIES HAVE TO ADDRESS ACROSS THE GLOBE. IN OUR CASE, FOR EXAMPLE, WE OPERATE IN CHINA UNDER CHINESE LAW WE HAVE THE CLOUD OPERATING IN GERMANY UNDER GERMAN LAW. HAVE WE HAVE NOT GOTTEN TO A POINT OF EQUILIBRIUM WHERE IT'S FRICTION FREE. WE CAN'T EXPECT THAT. SO THEREFORE WE ARE BUILDING AZURE AND THE AZURE INFRASTRUCTURE. OFFICE 365 AND DYNAMICS FOR THAT WORLD. THE COSTS OF THAT FOR SURE WILL BE HIGHER THAN JUST HAVING ONE DATA CENTER IN ONE PART OF THE WORLD TO SERVE EVERYBODY BUT IT MAY NOT BE REALISTIC

FORTT: ARE YOU HAVING TO TWEAK THOSE PLANS BASED ON THE HEADLINES.

NADELLA: YEAH, I MEAN MORE SO THAN WE ALREADY ANTICIPATED IT. I WOULD SAY I'M NOT TWEAKING IT BECAUSE OF BREXIT. LIKE EVEN TAKE THE UNITED KINGDOM. WE DO HAVE DATA CENTERS IN THE UNITED KINGDOM. WE DO HAVE DATA CENTERS IN THE NETHERLANDS. SO WE HAVE ALREADY ANTICIPATED WHAT I WOULD SAY ARE LEGITIMATE DIGITAL SOVEREIGNTY AND SECURITY NEEDS. NOW, SOMETIMES IT MAY GET MORE COMPLICATED, MORE FRICTION LADEN, BUT THAT I THINK OVERTIME, WILL COME DOWN. BUT TO ASSUME THE WORLD IS GOING TO BE SIMPLE I THINK WOULD BE A PROBLEM OR A PROBLEMATIC ASSUMPTION FOR ANY BUSINESS TO MAKE.

FORTT: AND JEFF.

IMMELT: SATYA, I WOULD JUST AGREE. YOU KNOW, A GOOD GLOBAL CEO KNOWS HOW TO MANAGE COMPLEXITY. WE ARE IN 185 COUNTRIES, WE HAVE 400 FACTORIES AROUND THE WORLD. WE KNOW HOW TO MAKE AND SELL THINGS IN EVERY CORNER OF THE WORLD. WE HAVE LOCAL TEAMS THAT WE HAVE INVESTED IN OVER THE YEARS. THE OTHER THING I WOULD SAY, JON, IS LOOK, WE ARE A $20 BILLION EXPORTER FROM THE UNITED STATES. WE ARE A NET EXPORTER IN ALMOST EVERY COUNTRY IN THE WORLD. WE CAN COMPETE. I DON'T THINK – THIS FEAR THAT EVERYBODY WANTS TO PUT FORWARD. LOOK, I UNDERSTAND THAT IT HASN'T BEEN – THAT THERE'S BEEN PEOPLE THAT HAVEN'T DONE AS WELL AS OTHERS HAVE, AS WE HAVE GLOBALIZED. BUT THE FACT IS, THIS COUNTRY IS QUITE COMPETITIVE. WE HAVE GREAT PEOPLE THAT WORK IN OUR FACTORIES , WE HAVE GREAT PRODUCTS. AND SO, I WOULD LOVE TO SEE MORE POLICIES THAT WOULD ACTUALLY MAKE OUR BUSINESSES MORE COMPETITIVE, HELP US COMPETE GLOBALLY, VERSUS CLOSING THE DOOR ON GLOBALIZATION. THERE IS STILL IN MY MIND MORE TO BE GAINED THAN TO BE LOST THROUGH GLOBALIZATION.

FORTT: AND JEFF, GE CAPITAL IS NO LONGER DESIGNATED EFFECTIVELY TOO BIG TO FAIL.

IMMELT: RIGHT.

FORTT: SYSTEMICALLY IMPORTANT FINANCIAL INSTITUTION. THAT MAKES SOME PEOPLE LIKE NELSON PELTZ VERY HAPPY OR PUSHING FOR GE TO FOCUS ON ITS ROOTS AS AN INDUSTRIAL COMPANY. THAT IS GOING TO FREE UP SOME RESOURCES THAT YOU DON'T HAVE TO SPEND COMPLYING WITH REGULATION. WHAT'S TOP OF THE LAUNDRY LIST AS FAR AS WHERE YOU ARE GOING TO INVEST NOW THAT THAT'S FREED UP?

IMMELT: LOOK, WE LOVE WHERE THE COMPANY IS TODAY. WE CONTINUE TO HAVE A GREAT DIVIDEND AND, YOU KNOW, WE'LL EXECUTE OUR PLANS ON BUYBACK AND THINGS LIKE THAT. BUT WE LOVE REINVESTING BACK IN OUR CORE FRANCHISES. WE LOVE THE COMPETITIVE ADVANTAGE WE HAVE. AND MAKING INVESTMENTS IN PREDIX AND ALL THE DIGITAL TRANSFORMATION WE ARE DRIVING INSIDE OF THE COMPANY, WE THINK THESE ARE GREAT FOR OUR CUSTOMERS, GREAT FOR OUR PEOPLE, BUT ALSO GREAT FOR OUR INVESTORS. SO, WHAT I WOULD SAY TO INVESTORS IS LOOK, YOU'RE GOING TO GET THE BEST INDUSTRIAL COMPANY IN THE WORLD AND YOU KIND OF GET PREDIX FOR FREE, RIGHT?. SO IF IT DOES WHAT I THINK IT CAN DO, AND WHAT I HOPE WORKING WITH SATYA WILL HELP US DO, THAT'S A PRETTY GOOD MESSAGE FOR INVESTORS RIGHT NOW.

FORTT: YOUR STOCK HAS BEEN ON A PRETTY GOOD TEAR, THOUGH. I'M NOT SURE THEY ARE GETTING IT FOR FREE.

IMMELT: YOU KNOW, A LITTLE LITERAL. MAYBE NOT WHAT JIM CRAMER WOULD SAY FREE, BUT YEAH.

FORTT: WELL, I WANT TO GO A LITTLE BIT LIGHTER, SATYA, IN A WAY. POKEMON GO OVER THE PAST FEW DAYS HAS EXPLODED ON MOBILE DEVICES AS THIS REALLY POPULAR GAME. YOU KNOW NINTENDO, YOU KNOW POKEMON. YOU THROW BALLS AT THEM OR SOMETHING. I DON'T KNOW, I NEVER PLAYED. I'M A LITTLE TOO OLD EVEN. BUT IT USES AUGMENTED REALITY, WHICH IS AN AREA THAT YOU AT MICROSOFT HAVE PIONEERED WITH THE HOLOLENS. ARE YOU MISSING AN OPPORTUNITY BY FOCUSING HIGH END WITH THE HOLOLENS WHEN PEOPLE SEEM TO BE EXCITED ABOUT SOME PRETTY SIMPLE APPLICATIONS TOO? IS THERE ROOM FOR YOU TO APPLY YOUR TECHNOLOGY JUST IN THIS MORE THAN YOU HAVE ALREADY?

NADELLA: LOOK, I THINK IT'S FANTASTIC TO SEE THESE AUGMENTED REALITY APPLICATIONS GETTING BUILT BECAUSE THE BEST THING THAT CAN HAPPEN WHEN YOU ARE CREATING A NEW CATEGORY IS FOR APPLICATIONS THAT ARE THESE KILLER APPS – WHETHER IT BE GAME OR IN THE INDUSTRIAL SCENARIO – TO GET INVESTED IN. AND SO, THERE IS POKEMON INTEREST HOPEFULLY WILL TRANSLATE INTO A LOT OF INTEREST EVEN INTO HOLOLENS. BECAUSE IF YOU THINK ABOUT IT, THE GAME PHYSICS OF THAT APP ARE BUILT FOR HOLOLENS. OF COURSE, THE PHONE IS A GREAT WAY BECAUSE AFTER ALL THE INSTALLED BASE OF THE PHONE IS SO ENORMOUS THAT IT MAKES IT POSSIBLE. BUT THINK ABOUT NOW WHAT THAT GAME ON HOLOLENS WOULD MEAN. YOU ARE NOT TRYING TO USE A PHONE WHEN YOU CAN ACTUALLY JUST USE YOUR EYES TO LOOK THROUGH AND HAVE THAT AUGMENTED REALITY EXPERIENCE. EVEN JUST AT THIS CONFERENCE, WE SHOWED NOT JUST GAMING THOUGH. BECAUSE TO ME, THE INDUSTRIAL SCENARIOS – WHETHER IT BE EDUCATION, TRAINING, MANUFACTURING, ARCHITECTURE, INDUSTRIAL DESIGN – THEY ARE GOING TO BE FUNDAMENTALLY CHANGED BY AUGMENTED REALITY. SO IT IS THE ULTIMATE COMPUTING PARADIGM. AND I'M HAPPY FOR POKEMON, BUT I'M HAPPY EVEN FOR THESE INDUSTRIAL APPLICATIONS.

IMMELT: HERE IS WHAT I WOULD SAY JON –

FORTT: SO ARE YOU BUYING HOLOLENS? BECAUSE YOU ARE THEIR CORE CUSTOMER.

IMMELT: LOOK, WE ARE ALL OVER THIS TECHNOLOGY. I THINK WHAT MICROSOFT IS WORKING ON, WE ARE QUITE KEEN ON. THEY ARE NOT THE ONLY ONES, BUT THEY ARE QUITE ADVANCED. LOOK, IF YOU CAN TAKE THE CYCLE TIME OF LESS DOING REPAIRS ON A UTILITY OR AN LNG PLANT OR REFINERY DOWN BY 10%. LET'S SAY BECAUSE YOU COULD FIX EVERYTHING RIGHT THE FIRST TIME, YOU HAD A CHANCE TO VISUALIZE AND MANAGE THE HUMAN DATA INTERFACE DOWN BY 10%. THAT'S PROBABLY WORTH $50 BILLION OR SOMETHING. YOU KNOW, I'M NOT A GREAT GAMER, SO I CAN'T REALLY SAY HOW MUCH THAT'S WORTH. BUT THE INDUSTRIAL APPLICATIONS OF THIS ARE GOING TO BE BILLIONS OF DOLLARS OF PRODUCTIVITY. AND THAT'S WHERE THE INDUSTRIAL INTERNET'S COME TO PLAY.

FORTT: SO, HOW FAR OFF DO YOU THINK WE ARE FROM WIDESPREAD ADOPTION OF TECHNOLOGIES LIKE –

IMMELT: LIKE THIS?

FORTT: YES.

IMMELT: WITHIN 24 MONTHS.

FORTT: OK.

IMMELT: YEAH, WITHIN 24 MONTHS.

FORTT: SO, DOES THAT MEAN YOU ARE PUTTING IN ORDERS WITHIN 24 MONTHS?

IMMELT: YEAH, YEAH, NO, WITHIN 24 MONTHS. I THINK WHAT WE ARE TRYING TO DO IS REALLY BUILD THE RIGHT HUMAN INTERFACE. WE HAVE, LET'S SAY, 20,000 FIELD ENGINEERS THAT ARE REPAIRING MR SCANNERS, OR GAS TURBINES, OR JET ENGINES. WE ARE MARRYING THAT WITH SERVICE DATA RIGHT NOW. BUT THIS IS REALLY RIGHT THERE. VIS-A-VIS HOW TO UNFOLD IT IN THE TECHNOLOGY.

FORTT: ARE YOU GOING TO BE ABLE TO SUPPLY HIM WITH HOLOLENS IN VOLUME?

NADELLA: THE SCENARIO THAT WE JUST SHOWED IN FACT WAS THE JAPAN AIRLINES USING IT FOR THE TRAINING MODULE. AND YEAH, ABSOLUTELY. HOLOLENS IS AVAILABLE TODAY. YOU JUST HAVE TO GO UP AND ORDER THE DEVICES.

IMMELT: IT'S A LITTLE BIT TOO PRICY STILL. WE WERE THINKING –

FORTT: IF IT'S GOING TO SAVE YOU $15 BILLION, I DON'T KNOW.

IMMELT: THE PRICE HAS GOT TO BE A LITTLE BIT BETTER.

FORTT: OKAY. SO, YOU ARE GOING TO BE READY TO SUPPLY THIS IN VOLUME WITHIN 24 MONTHS. YOU ARE KEEN TO START USING IT WITHIN 24 MONTHS. SOUNDS LIKE AUGMENTED REALITY AND THE PROMISE OF THAT, PERHAPS RUNNING ON PREDIX, IS SOMETHING WE'RE GOING TO BE TRACKING AS A REAL CONTRIBUTOR BEFORE VERY LONG.

IMMELT: OH I THINK, AGAIN, I LOOK AT OUR – LET'S SAY TO REPLACE THE GE INSTALLED BASE TODAY WOULD BE ALMOST $2 TRILLION. SO THESE ASSETS THAT ARE OUT THERE, THESE INDUSTRIAL ASSETS – I MEAN, THE DIFFERENCE BETWEEN THE CONSUMER INTERNET AND THE INDUSTRIAL INTERNET – IF YOU GET SICK OF YOUR IPHONE, YOU JUST THROW IT AWAY AND BUY ANOTHER ONE. YOU DON'T DO THAT WITH A JET ENGINE OR A GAS TURBINE. YOU NEED IT, YOU KNOW, 1% MORE FUEL IS LIKE GOLD FOR YOU. SO OUR ABILITY TO DELIVER IN THIS DISTRIBUTED GLOBAL NETWORK, MORE PRODUCTIVITY TOOLS, IS LIKE GOLD FOR OUR CUSTOMERS. AND MAKE NO MISTAKE, AUGMENTED REALITY IS GOING TO HAPPEN. IT IS GOING TO HAPPEN IN THE INDUSTRIAL SPACE. IT IS GOING TO BE VERY PRODUCTIVE. YOU KNOW, WE WANT TO MAKE SURE AS A PRACTITIONER, LET'S SAY FIRST AND FOREMOST, WE WANT TO BE THE BEST PRACTITIONER OF THIS TECHNOLOGY.

FORTT: AND SATYA, I NOTICED, JUST TO CLOSE, YOU JUST JOINED YOUR FIRST NONPROFIT BOARD. TELL US A LITTLE BIT ABOUT THAT AND WHY THAT'S IMPORTANT YOU PICKED THIS ONE.

NADELLA: YOU KNOW, TO ME, I WAS LOOKING AT WHAT'S A WORLD CLASS ORGANIZATION, DOING WORLD CLASS WORK, AND WAS LOCAL TO SEATTLE, AND YOU KNOW, UNANIMOUSLY, PEOPLE SORT OF RECOMMENDED FRED HUTCH. BECAUSE WHEN I THINK ABOUT CURING CANCER AND THE WAY THINGS LIKE IMMUNOTHERAPY ARE REALLY BENDING THE CURVE ON FINDING THE CURE FOR CANCER, I FELT THAT I CAN LEARN A LOT AND MAYBE CONTRIBUTE A THING OR TWO TO A WORLD CLASS ORGANIZATION LIKE FRED HUTCH. SO I'M REALLY PRIVILEGED TO HAVE A CHANCE TO JOIN THEIR BOARD AND I'M LOOKING FORWARD TO IT.

IMMELT: HUTCH IS A GREAT CANCER – ONE OF THE BEST IN THE WORLD. SO, THAT'S GREAT TO HAVE SATYA THERE.

FORTT: ALL RIGHT. WELL, I GUESS ONE LAST QUESTION FOR YOU. YOU ARE 60 YEARS OLD, I'M TOLD. YOU DON'T LOOK A DAY CLOSE TO THAT. BUT EDGING TOWARD THE AREA WHERE PEOPLE START WONDERING, OKAY, SUCCESSION PLANS, HOW LONG ARE YOU PLANNING TO SERVE IN THIS JOB? ARE YOU IN IT FOR THE LONG HAUL?

IMMELT: SO, JOE KERNEN AND I ARE BOTH FROM CINCINNATI. WE WERE BOTH BORN THE SAME YEAR. SO HE AND I – I'M GOING TO GO AS LONG AS JOE GOES.

FORTT: YOU'RE GOING TO GO AS LONG AS JOE KERNEN GOES.

IMMELT: SO, WHEREVER THAT TAKES ME. YOU JUST TELL HIM I SAID IT.

FORTT: ALL RIGHT. PUT YOUR RUNNING SHOES ON BECAUSE THAT COULD BE A LONG TIME.

IMMELT: OK.

FORTT: I DON'T KNOW HOW LONG A DAY YOU WORK. BUT OKAY.

IMMELT: MORE THAN JOE, I CAN TELL YOU.

FORTT: WELL, YOU SAID IT. I DIDN'T. THANK YOU, GENTLEMEN, FOR JOINING US. COVERING INDUSTRIAL INTERNET, THE CLOUD, AUGMENTED REALITY – SO MUCH. REALLY APPRECIATE IT. EXCLUSIVE TO CNBC, SATYA NADELLA OF MICROSOFT AND JEFF IMMELT OF GE. BACK TO YOU.

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