Business of Tech

Recent advancements in quantum computing are pushing the technology closer to practical application, with companies like Google, IBM, and ICONIC making significant strides in stabilizing quantum systems. This progress poses risks to current encryption methods, as traditional security measures may become obsolete due to quantum capabilities. The National Institute of Standards and Technology (NIST) is advocating for the adoption of post-quantum cryptography (PQC) to protect sensitive data, emphasizing the urgency for organizations to reassess their security protocols. Failure to act could result in severe repercussions, including data breaches and regulatory noncompliance.Google's quantum computing division has published research demonstrating practical applications for quantum computers, such as using quantum technology for nuclear magnetic resonance to estimate atomic structures. The company is shifting its focus from merely proving quantum feasibility to making the technology cost-effective. Sundar Pichai, CEO of Alphabet, expressed optimism about the timeline for commercially viable quantum computing, while industry opinions vary, with some experts suggesting practical applications may still be decades away. This divergence highlights the uncertainty surrounding the timeline for widespread quantum adoption.In addition to quantum computing advancements, the episode discusses the integration of PQC into mainstream technology. Microsoft Windows 11 has begun incorporating PQC algorithms into its cryptographic APIs, allowing for the generation of PQC key pairs and hybrid TLS handshakes. Meanwhile, companies like Palo Alto Networks are updating their software to support quantum-resistant encryption. These developments indicate a growing recognition of the need for quantum-safe security measures as organizations prepare for the potential threats posed by quantum computing.For Managed Service Providers (MSPs) and IT decision-makers, the implications are clear: proactive measures are necessary to prepare for the quantum computing era. MSPs should assist clients in inventorying their cryptographic systems and developing a roadmap for adopting PQC. As the U.S. government urges organizations to transition to quantum-safe encryption by 2035, MSPs must prioritize updating protocols and exploring quantum-resistant solutions. The transition to quantum-safe encryption is a multi-year effort, and early preparation will help mitigate future risks associated with quantum advancements. One thing to know today00:00 All About Quantum Computing This is the Business of Tech.    Supported by:  

OpenAI has officially transitioned to a for-profit corporation, a move approved by Delaware Attorney General Kathy Jennings. This restructuring allows OpenAI to raise capital more effectively while maintaining oversight from its original non-profit entity. Microsoft now holds a 27% stake in the new structure, valued at over $100 billion, and OpenAI has committed to purchasing $250 billion in Microsoft Azure cloud services. This agreement includes provisions for Artificial General Intelligence (AGI), which will require verification from an independent expert panel before any declarations are made. Critics have raised concerns about the potential compromise of the non-profit's independence under this new arrangement.Research from cybersecurity firm SPLX indicates that AI agents, such as OpenAI's Atlas, are becoming new security threats due to vulnerabilities that allow malicious actors to manipulate their outputs. A survey revealed that only 17.5% of U.S. business leaders have an AI governance program in place, highlighting a significant gap in responsible AI use. The National Institute of Standards and Technology emphasizes the importance of identity governance in managing AI risks, suggesting that organizations must embed identity controls throughout AI deployment to mitigate potential threats.Additionally, a critical vulnerability in Microsoft Windows Server Update Services (WSUS) is currently being exploited, with around 100,000 instances reported in just one week. This vulnerability allows unauthenticated actors to execute arbitrary code on affected systems, raising concerns among cybersecurity experts, especially since Microsoft has not updated its guidance on the matter. Meanwhile, Microsoft 365 Copilot has introduced a new feature enabling users to build applications and automate workflows using natural language, which could lead to governance challenges as employees create their own automations.For Managed Service Providers (MSPs) and IT service leaders, these developments underscore the need for enhanced governance and security measures. The shift of OpenAI to a for-profit model signals a tighter integration with Microsoft, necessitating familiarity with Azure's AI stack. The vulnerabilities associated with AI agents and the WSUS exploit highlight the importance of proactive security measures. MSPs should prioritize establishing governance frameworks around AI usage and ensure robust identity management to mitigate risks associated with these emerging technologies.Four things to know today00:00 OpenAI Officially Becomes a For-Profit Corporation, Cementing $100B Partnership with Microsoft03:30 AI Agents Are Becoming a Security Nightmare—Because No One Knows Who They Really Are07:53 Hackers Are Targeting WSUS Servers — and You Could Be Distributing Malware Without Knowing It09:28 Microsoft's New Copilot Features Turn AI from Assistant to App Creator, Raising Governance Questions This is the Business of Tech.    Supported by:  https://scalepad.com/dave/https://getflexpoint.com/msp-radio/

AI assistants are currently misrepresenting news content 45% of the time, according to a study by the European Broadcasting Union. This research, which evaluated 3,000 responses from popular AI chatbots, including ChatGPT and Google Gemini, revealed that 31% of responses had serious sourcing issues, while 30% contained inaccuracies. Notably, Google's Gemini performed the worst, with 76% of its outputs flawed. This raises significant concerns about the reliability of AI in disseminating information, particularly as these tools increasingly serve as intermediaries between users and content.In addition to issues of accuracy, a study from Stanford and Harvard found that AI chatbots tend to flatter users rather than challenge them, validating user behavior 50% more than human counterparts. This tendency to agree rather than provide constructive feedback can lead to a lack of critical engagement, further complicating the role of AI in decision-making processes. Furthermore, the Wikimedia Foundation reported an 8% decline in human traffic to Wikipedia, attributed to generative AI chatbots and search engines that provide direct answers without redirecting users to original sources. This trend highlights the growing challenge faced by platforms reliant on user engagement.The episode also discusses advancements in AI capabilities from major players like Microsoft, OpenAI, and Anthropic. Microsoft has introduced updates to its CoPilot AI assistant, including a group chat feature and a new Real Talk mode that encourages more dynamic interactions. OpenAI's ChatGPT can now search across multiple applications, while Anthropic's Claude has introduced a memory feature that retains past conversations. These developments indicate a shift towards more integrated and context-aware AI systems that can enhance collaboration and user experience.For Managed Service Providers (MSPs) and IT service leaders, the implications are clear. The effectiveness of AI now hinges on context, governance, and integration rather than just model size. As AI tools become more prevalent, the responsibility for ensuring their safe and effective use falls on providers. This presents an opportunity for MSPs to develop new service lines focused on AI hygiene and governance, helping clients navigate the complexities of AI while maximizing its potential benefits.Four things to know today 00:00 The Limits of AI: Research Shows Chatbots Mislead, Overagree, and Undermine the Information Ecosystem04:27 A 1997 PC Running AI? The Future of Intelligence Might Be Smaller, Cheaper, and Closer to Home08:08 AI's Getting Personal — Microsoft, OpenAI, and Anthropic Roll Out Smarter, More Human Chatbots13:26 From Feedback to Fixes: Microsoft's New Copilot Brings AI to Customer Experience and Operational Intelligence This is the Business of Tech.    Supported by:  https://mailprotector.com/mspradio/

Small business confidence has declined as inflation concerns rise, with 71% of owners expressing worries about ongoing price increases, according to the latest CNBC SurveyMonkey Small Business Index. This marks an increase from 66% in the previous quarter, indicating a cautious approach to spending among small business owners. The report highlights that 24% of these owners view rising prices as the greatest risk to their operations, prompting a need for strategic adjustments in pricing and customer engagement to mitigate inflationary pressures.In parallel, Gartner projects that global IT spending will exceed $6 trillion by 2026, driven primarily by investments in data center systems and software, particularly in response to the growing demand for artificial intelligence (AI) services. Despite the anticipated growth rate of 9.8% year-over-year, challenges remain, including constraints on computing resources and governance tasks. Gartner's analysis suggests that while organizations are currently experiencing disillusionment with generative AI, its integration into existing enterprise software is becoming more prevalent, shifting the focus from speculative investments to cost-cutting and efficiency improvements.The Kanata Report reveals that nearly half of the surveyed office technology dealers offer managed IT services, yet these services account for only 7.6% of overall dealer revenue. Among those engaged in managed IT, 73% reported an average revenue increase of 28.8%. This indicates that while there is potential for growth in managed IT services, many dealers are not fully capitalizing on this opportunity. Additionally, concerns about a potential AI bubble are discussed, with analysts suggesting that managed service providers (MSPs) may not be significantly affected, as major AI innovations are primarily driven by large corporations.For MSPs and IT service leaders, the current landscape emphasizes the importance of specialization and collaboration in a competitive market. With 75% of partners identifying these as top priorities, it is crucial for providers to differentiate themselves and focus on specific verticals. The findings suggest that while optimism remains high, particularly in regions like Latin America, actual revenue growth is slowing. MSPs should benchmark their performance, leverage distributor partnerships, and prioritize delivering measurable outcomes to navigate the evolving market effectively.Four things to know today00:00 Small Businesses Tighten Budgets While Enterprises Drive AI-Fueled IT Growth04:19 Cannata Report Shows IT Maturity Gap as Channel Weighs AI Bubble Risks07:28 Intel Returns to Profit With Government Boost, but Foundry Struggles Continue09:52 TD SYNNEX Report Shows Partner Growth Slowing but Confidence Holding Strong This is the Business of Tech.    Supported by:  https://saasalerts.com/mspradio/

In this episode of The Business of Tech, host Dave Sobel engages in a conversation with Tammy Cannizzaro, the Chief Marketing Officer at Thrive, a company with over a century of experience that has transitioned from selling Yellow Pages ads to providing a comprehensive SaaS-enabled marketing solution for small businesses. Tammy outlines Thrive's mission to help small businesses grow by enhancing their online presence and competing effectively against larger enterprises. She emphasizes the importance of a structured approach to marketing, which includes getting found online, converting leads into customers, and fostering customer loyalty.As the discussion progresses, Tammy highlights the significant impact of artificial intelligence (AI) on small businesses, particularly in marketing. She shares insights from Thrive's research, indicating that a growing number of small business owners are adopting AI tools to improve their marketing strategies. Tammy explains how AI can assist in optimizing online visibility, managing customer reviews, and maintaining fresh website content, all of which are crucial for small businesses looking to thrive in a digital landscape increasingly dominated by AI technologies.Tammy also addresses the challenges small business owners face when integrating AI into their operations. She advocates for a gradual approach, suggesting that starting with simple AI applications can yield meaningful results without overwhelming business owners. By focusing on practical use cases, such as automated customer outreach and review responses, small businesses can leverage AI to enhance their marketing efforts and drive repeat business. This incremental strategy allows them to build confidence and familiarity with AI tools over time.Finally, the conversation touches on the importance of customer retention and the balance between marketing-driven and product-led growth. Tammy emphasizes that understanding customer needs and preferences is key to delivering effective SaaS solutions. Thrive aims to meet customers where they are, offering various engagement options, from hands-on support to self-service models. This flexibility ensures that small business owners can choose the approach that best suits their unique circumstances, ultimately fostering long-term relationships and driving growth.

The podcast episode explores three significant shifts impacting the managed service provider (MSP) and technology landscape. The first topic centers on the ongoing debate regarding artificial intelligence (AI) and its role in empowering non-skilled workers versus enhancing the capabilities of skilled professionals. The discussion highlights the current state of AI adoption in organizations, emphasizing that while skilled workers are leveraging AI to augment their expertise, many smaller MSPs are still in the experimental phase, using AI for basic tasks rather than integrating it into their core operations.The second major theme is the emergence of the security-first MSP model, where cybersecurity is not merely an add-on service but a fundamental aspect of the business. Research indicates that a significant portion of MSPs still view cybersecurity as a secondary function, with only a small percentage considering it a core part of their offerings. This raises concerns about the preparedness of MSPs to meet the growing cybersecurity demands of their clients, especially as regulations and compliance requirements become more stringent.The final discussion point addresses the readiness of small and medium-sized businesses (SMBs) for AI-powered cyber attacks. The experts note that many SMBs are ill-prepared for the evolving threat landscape, often relying on outdated strategies that may no longer be effective. The conversation underscores the necessity for MSPs to not only enhance their cybersecurity offerings but also to educate their clients about the importance of integrating cybersecurity into their overall business strategy.Throughout the episode, the hosts emphasize the need for MSPs to adopt a more proactive approach to cybersecurity and AI integration. They argue that as the technology landscape continues to evolve, MSPs must refine their business models and operational processes to remain competitive. The discussion concludes with a call for MSPs to embrace their role as trusted advisors, guiding their clients through the complexities of cybersecurity and AI, and ensuring that they are equipped to navigate the challenges of the modern digital environment.

Executives are increasingly optimistic about the potential of artificial intelligence (AI) to transform their organizations, with 87% believing it will fundamentally change their business within a year. However, a significant gap exists between this optimism and the readiness of their workforce, as only 29% of executives feel their teams possess the necessary skills to effectively leverage AI technology. This disconnect is compounded by foundational issues in technology infrastructure, which over half of the surveyed executives cite as barriers to innovation. For Managed Service Providers (MSPs), this presents both a challenge and an opportunity to guide clients through complex AI transformations.A report from Movila indicates that 59% of MSPs are grappling with project management scope creep, which has risen from 46% in 2024. This increase is attributed to inaccurate project timelines and low process maturity, which are critical factors affecting profitability. Movila's CEO emphasizes the importance of accurate timelines in maintaining project profitability, suggesting that structured project management processes are essential for improving efficiency and client outcomes. The findings highlight the need for MSPs to address their internal project management challenges before assisting clients with AI initiatives.The episode also discusses the impact of the ongoing federal shutdown on government IT operations, which has led to workforce furloughs and hindered modernization efforts. Additionally, a study reveals a stark divide in AI adoption between executives and employees, with 87% of executives using AI compared to only 27% of employees. This disparity has created tensions in the workplace, particularly in companies where leadership promotes AI integration while employees express concerns about its reliability and job security.For MSPs and IT service leaders, the key takeaway is the necessity of focusing on execution and discipline rather than merely adopting new technologies. As the market for AI continues to grow, MSPs should prioritize training and process improvement to ensure their teams and clients are prepared for AI integration. By addressing foundational issues and fostering a culture of readiness, MSPs can position themselves as valuable partners in navigating the complexities of AI adoption.Four things to know today00:00 The Readiness Gap: When AI Ambitions and MSP Project Discipline Don't Match Reality03:46 Reality Check: From Shutdowns to AI Gaps, Tech's Biggest Problem Isn't Tools—It's Readiness07:13 Contrarian Wisdom: When Saying “No” to AI and “Goodbye” to VMware Becomes a Winning Strategy09:53 Waste, Profit, and AI Decay: Rethinking Technology's Broken Business Models Before They Collapse This is the Business of Tech.    Supported by:  https://cometbackup.com/?utm_source=mspradio&utm_medium=podcast&utm_campaign=sponsorshiphttps://scalepad.com/dave/

U.S. federal cybersecurity policy has regressed by approximately 13%, according to a report from the Cyberspace Solarium Commission 2.0. This decline is attributed to budget cuts and workforce reductions at key agencies, including the Cybersecurity and Infrastructure Security Agency (CISA) and the State Department's Cyber Diplomacy Staff. The report indicates that nearly a quarter of previously implemented recommendations have lost their status, which raises concerns about the nation's ability to effectively address rising cyber threats. Mark Montgomery, a former Navy Rear Admiral, emphasized that these cuts hinder the agency's effectiveness, calling for the restoration of funding and personnel to strengthen national cyber defenses.In addition to the decline in federal cybersecurity readiness, AI-generated code is now responsible for one in five security breaches, as reported by Aikido. The study found that AI coding tools account for 24% of production code, with 43% of U.S. organizations reporting serious incidents linked to AI-related flaws. Interestingly, the report also noted that increasing the number of security tools does not necessarily enhance safety; organizations using six to nine tools experienced a 90% incident rate, compared to 64% for those with one or two tools. Despite these challenges, 96% of industry professionals remain optimistic that AI will eventually produce secure and reliable code.The episode also highlights the impact of generative AI on IT service management, revealing that organizations utilizing this technology have reduced incident resolution times by nearly 18%. A report from SolarWinds indicated that the average resolution time decreased from 27.42 hours to 22.55 hours after implementing generative AI. Furthermore, a survey by Accenture found that 19% of office workers admitted to entering sensitive business information into free, unsecured AI tools, underscoring significant gaps in cybersecurity awareness and training.For Managed Service Providers (MSPs) and IT service leaders, these developments signal a pressing need for improved governance and training regarding AI usage. The findings suggest that organizations should focus on reducing tool sprawl and enhancing employee education on cybersecurity responsibilities. As small business optimism declines amid rising inflation and supply chain issues, MSPs should position themselves as stability partners, helping clients navigate these challenges rather than pushing the latest technology trends. The evolving landscape of cybersecurity threats, particularly those involving AI and automation, necessitates a proactive approach to risk management and incident response. Three things to know today 00:00 U.S. Cyber Defenses Slide as AI Code Risks Rise and Governance Gaps Widen05:41 Inflation, Uncertainty, and Automation Push Small Firms Toward Caution and Cost Control09:23 From Prompt Injections to Hidden Malware, Cyber Attacks Are Shifting Toward Stealth and Precision This is the Business of Tech.     Supported by:  https://saasalerts.com/platform-overview-for-msps/?utm_source=mspradio 

OpenAI has launched ChatGPT Atlas, an AI-powered browser designed to compete with Google in the realm of online information searches. Initially available on macOS, the browser will soon expand to Windows, iOS, and Android, offering free access to all users at launch. The integration of core ChatGPT functionalities allows users to interact directly with search results, streamlining online tasks through features like a sidecar and an agent mode for automating web-based tasks, although the latter will be limited to paying users. Despite the promising features, concerns about security and privacy have been raised, particularly regarding the experimental agent mode.The rapid adoption of AI technologies has led to ChatGPT processing an impressive 2.5 billion messages daily, with its user base reaching approximately 800 million. However, OpenAI faces significant financial challenges, reportedly losing three times more money than it earns, with a substantial portion of its users not paying for the service. The company generated $4.3 billion in revenue in the first half of 2025 but suffered a net loss of $13.5 billion. This financial disparity presents both challenges and opportunities for growth in the market, as OpenAI aims to double its customer base while investing heavily in data center capacity.In other industry news, Corey Kirkendall has been appointed as the new president of the National Society of IT Service Providers, focusing on strengthening community ties and advocating for ethical practices within the IT service industry. His leadership is seen as a pivotal moment for the organization, which is evolving into a more influential advocacy group. This shift could provide IT service providers with a stronger voice in the industry, emphasizing the importance of relationships over technology.Additionally, TeamViewer has integrated its software with Salesforce's AgentForce, enhancing IT service management capabilities, while Serval has raised $47 million to develop innovative agentic AI models for IT service management. Zoom has also introduced new features for its Zoom Spaces platform to improve collaboration in hybrid work environments. These developments indicate a trend where the boundaries between IT management, collaboration, and automation are increasingly blurring, signaling a need for IT providers to adapt to a rapidly changing landscape.Three things to know today00:00 OpenAI Launches ChatGPT Atlas Browser as AI Dominates the Web—and Faces Its Own Financial Reality06:48 Corey Kirkendoll Named President of NSITSP as Group Matures into National Voice for IT Service Providers08:40 AI Redefines IT Management: Salesforce-Driven Agentforce Integration, Serval's Dual-Agent Model, and Zoom's Hybrid Enhancements Lead the Shift This is the Business of Tech.     Supported by:  https://scalepad.com/dave/https://cometbackup.com/?utm_source=mspradio&utm_medium=podcast&utm_campaign=sponsorship 

Small and medium-sized businesses (SMBs) are significantly increasing their spending on cybersecurity solutions, with managed detection and response (MDR) and network detection and response (NDR) expected to grow by 107% and 118%, respectively. However, despite this financial commitment, a recent study reveals that 83% of SMBs do not conduct formal security awareness training, and nearly half lack established incident response protocols. This operational gap is concerning, as the average financial loss from a security incident for these businesses is estimated at $1.6 million. The study emphasizes that technology alone cannot address the underlying issues of process and expertise that leave many businesses vulnerable.Microsoft's sixth annual digital defense report highlights a troubling trend where over half of cyberattacks are now financially motivated, with ransomware and extortion being primary drivers. Critical public services, such as hospitals and local governments, are particularly at risk due to limited cybersecurity budgets and inadequate incident response capabilities. Nation-state actors are also evolving their tactics, with countries like China and North Korea increasing their cyber espionage efforts. Microsoft stresses the importance of organizations staying informed about threats and collaborating with industry peers to enhance their defenses.For managed service providers (MSPs), this situation presents a unique opportunity. Clients are investing in cybersecurity tools but require assistance in operationalizing these tools into effective security measures. MSPs can help by building processes, training personnel, and conducting tabletop exercises to ensure that businesses are not just purchasing products but are genuinely prepared for potential threats. The podcast emphasizes that cybersecurity is not merely about acquiring tools; it is fundamentally about preparedness and having a well-executed plan tailored to the business's needs.Additionally, the episode discusses recent product updates from various vendors, including Nerdio, SureWeb, and Veeam, which are introducing new AI tools and partner updates to enhance MSP operations. The importance of human capital in maintaining complex systems is also highlighted, particularly in light of Amazon's recent AWS outage, which was exacerbated by significant layoffs leading to a loss of institutional knowledge. The podcast concludes with a call for MSPs to audit their technology stacks and focus on the impact of workflows rather than just features, ensuring that they are prepared for any chaos that may arise. Four things to know today00:00 The Cybersecurity Paradox: SMBs Spend More Than Ever, But Stay Just as Vulnerable04:21 ConnectWise's Critical Automate Flaws Highlight the Growing Risk of On-Prem RMMs06:11 From Layoffs to Latency: Amazon's DNS Outage Reveals the True Cost of Lost Expertise09:06 AI, Compliance, and Cloud PCs: Vendors Race to Redefine MSP Efficiency Ahead of Microsoft's 2025 Shift This is the Business of Tech.    Supported by:  https://try.auvik.com/dave-switchhttps://cometbackup.com/?utm_source=mspradio&utm_medium=podcast&utm_campaign=sponsorship

Microsoft is significantly enhancing Windows 11 by integrating artificial intelligence capabilities, transforming the PC experience into what the company calls the "AI PC." This new initiative allows users to interact with their computers using voice commands through a feature called CoPilot. With functionalities like CoPilot Actions, users can delegate tasks such as editing files and troubleshooting issues directly to AI agents, which operate in secure environments to ensure data safety. This shift comes as Windows 10 reaches its end of life, prompting a wave of hardware upgrades as consumers and enterprises seek AI-enabled PCs. Salesforce has also made strides in the IT support sector by launching AgentForce IT Service, a conversational support suite designed to streamline employee assistance. This new system moves away from traditional ticket-based support to real-time solutions delivered through platforms like Slack. By automating incident management, AgentForce aims to reduce the time employees spend on IT challenges, which can lead to significant productivity losses. The service integrates with major companies, enhancing its utility and positioning Salesforce as a competitor in the help desk market. Research indicates that organizations that are well-prepared for AI are more likely to successfully implement AI projects and achieve measurable benefits. Cisco's AI Readiness Index reveals that companies integrating AI into their core functions see substantial gains in profitability and productivity. As enterprise spending on AI infrastructure is projected to double by 2026, the focus is shifting from training AI models to deploying them effectively in business operations. This trend underscores the importance of having a robust infrastructure to support AI initiatives. Finally, Microsoft has announced the end of support for Office 2016 and 2019, urging users to migrate to newer versions like Microsoft 365 Apps or Office 2024. This transition presents an opportunity for managed service providers to engage clients in proactive discussions about software upgrades and security measures. As unsupported software becomes a liability, providers can align these upgrades with other IT improvements, ensuring clients remain compliant and secure. The emphasis is on guiding clients through these changes to enhance their operational efficiency and maintain a steady revenue stream for service providers. Four Things to Know Today: 00:00 Windows 11 Enters the AI Era as Microsoft Launches Copilot-Powered PC Experience05:31 Salesforce Enters IT Support Market with Agentforce, Targeting Productivity and PSA Disruption09:06 AI Advantage Comes to Those Prepared: Cisco, Gartner, and Anthropic Signal Shift to Embedded Intelligence13:10 End of Support for Office 2016 and 2019 Raises Security Stakes, Opens QBR Opportunities  Sponsored by:  https://mailprotector.com/mspradio/

Jacob Ward, a technology journalist and author, delves into the complex relationship between artificial intelligence (AI), human behavior, and social change. He shares insights from his extensive experience in technology journalism, including his time as editor-in-chief of Popular Science and a correspondent for NBC News. Ward emphasizes the concerning trend of AI eroding our sense of agency, as companies increasingly deploy AI systems that exploit our cognitive shortcuts. He argues that while these technologies can enhance productivity by automating repetitive tasks, they also risk diminishing our ability to engage in critical thinking and moral reasoning.Ward highlights the blind spots in how big tech companies market AI as productivity tools without addressing the psychological implications of their use. He warns that the commercial interests of these companies often align with amplifying our primitive decision-making instincts rather than fostering our rational and creative capacities. This dynamic can lead to a reliance on AI systems that ultimately detracts from our ability to make thoughtful decisions, similar to how over-reliance on navigation apps has impaired our sense of direction.The conversation also touches on the importance of intentionality when using AI tools in business contexts. Ward suggests that while it is beneficial to use AI for mundane tasks, users should be cautious not to let these systems dictate their work pace or decision-making processes. He advocates for using AI to free up time for more significant, creative thinking rather than allowing it to consume time with trivial tasks. This approach can help maintain a balance between leveraging technology and preserving our cognitive abilities.Finally, Ward discusses the regulatory landscape surrounding AI, noting that while innovation often outpaces policy, regulations are inevitable. He draws parallels between the current state of AI and historical industries like airlines and shipping, suggesting that the future of AI may resemble these heavily regulated sectors. As AI continues to evolve, Ward emphasizes the need for a thoughtful approach to its implementation, ensuring that it serves to enhance human capabilities rather than diminish them.

The podcast discusses the current state of AI adoption among Managed Service Providers (MSPs) and the challenges they face in delivering measurable results to clients. Despite significant investments in AI, many enterprises report no new revenue from these technologies, leading to a growing skepticism about their practical value. MSPs are now under pressure to bridge the gap between vendor promises and client realities, focusing on specific workflow use cases that can demonstrate tangible benefits. The conversation emphasizes the importance of understanding client workflows and integrating technology in a way that enhances human productivity rather than replacing it.Ryan Morris, a channel strategist, highlights the cyclical nature of technology adoption, comparing the current AI landscape to previous technology trends like the dot-com boom and cloud computing. He notes that while the tools for implementing AI have become more user-friendly, the challenge remains in effectively integrating these tools into existing business processes. The discussion also touches on the need for MSPs to evolve from traditional roles to become more strategic partners, guiding clients through the complexities of AI implementation.The podcast further explores the trend of vendor consolidation in the tech industry, particularly with Kaseya's acquisition of Inky. This move signals a shift towards integrated platforms, but Morris argues that the best-of-breed approach is still relevant, especially for MSPs who prioritize flexibility and risk management. He explains that while vendors may push for comprehensive solutions, MSPs are cautious about committing to a single vendor due to concerns about vendor lock-in and the need for reliable service delivery.Finally, the conversation addresses the changing landscape of market development funds (MDF) in the channel. Traditional MDF programs are viewed as outdated, with partners now seeking outcome-based funding and support for solution development. This shift reflects a broader desire for meaningful collaboration between vendors and partners, focusing on integrated campaigns that drive measurable results rather than simple marketing reimbursements. The podcast concludes with a call for a more strategic approach to channel development that prioritizes long-term partnerships and shared success.

Hybrid work is evolving into a strategic approach for organizations, rather than disappearing. Recent data indicates that 43% of small and mid-sized businesses offered hybrid work options in the third quarter of 2025, reflecting a slight decrease but still underscoring its significance in the modern workplace. Companies are focusing on enhancing their culture, improving physical environments, and developing better management practices. However, major tech companies like Amazon, Apple, and Google are pushing for a return to in-office work, which may risk losing top talent as employees increasingly prefer remote work for better work-life balance.The impact of artificial intelligence (AI) on the workforce is becoming more pronounced, particularly for young workers in roles exposed to AI, such as software development and customer service. A study from Stanford University revealed a 13% decline in employment for young individuals aged 22 to 25 in these sectors since the introduction of AI tools like ChatGPT. This trend highlights the need for educational institutions to adapt their curricula to prepare students for an evolving job market influenced by AI technologies. Meanwhile, small business owners are facing challenges with unfilled job openings, indicating a mismatch between available roles and qualified candidates.Organizations are finding ways to empower non-technical employees to embrace AI, as demonstrated by Super.com, which trained its staff to build their own tools, resulting in significant revenue growth. This approach emphasizes the importance of creating accessible tools and fostering a culture of innovation. As AI usage among employees rises, disparities in access to technology and training persist, particularly between executives and non-managers. Companies that provide inclusive AI training are likely to lead in productivity and innovation, making it essential for IT providers to help clients optimize their workflows and prepare their teams for AI integration.The discussion around AI suggests that we may not be in a bubble, as evidence shows early adopters are experiencing substantial performance improvements. Unlike the dot-com boom, current AI investments are driven by profitable companies integrating technology into their operations. The evolving role of AI is also elevating the value of support jobs, as organizations require skilled professionals to navigate complex customer needs. As AI systems become more prevalent, the demand for human skills such as empathy and communication remains crucial, indicating that the future of work may focus on enhancing human impact rather than replacing it.Three things to know today00:00 Hybrid Work Isn't Over—It's Optimizing for the Long Haul05:32 AI Training Pays Off: Super.com Hits $200M Revenue with Citizen Developers09:48 AI Boom or Business Shift? Analysts See Sustainable Growth, Not a Bubble This is the Business of Tech.    Supported by:  https://timezest.com/mspradio/https://cometbackup.com/?utm_source=mspradio&utm_medium=podcast&utm_campaign=sponsorship 

The Cybersecurity and Infrastructure Security Agency (CISA) has issued an emergency directive for federal agencies to update their F5 products following a significant breach where hackers accessed source code and undisclosed vulnerabilities. This incident, discovered in August, poses a serious risk to federal networks, as the threat actor could exploit these vulnerabilities to gain unauthorized access and exfiltrate sensitive data. Agencies are required to apply the latest updates by October 22nd and report their F5 deployments by October 29th, highlighting the urgency of addressing these security concerns.In a related development, the National Institute of Standards and Technology (NIST) is encouraging federal agencies to take calculated risks with artificial intelligence (AI) under new federal guidance. Martin Stanley, an AI and cybersecurity researcher, emphasized the importance of risk management in AI deployment, particularly in comparison to more established sectors like financial services. As agencies adapt to this guidance, they must identify high-impact AI applications that require thorough risk management to ensure both innovation and safety.A report from Cork Protection underscores the need for small and medium-sized businesses (SMBs) to adopt a security-first approach in light of evolving cyber threats. Many SMBs remain complacent, mistakenly believing they are not targets for cybercriminals. The report warns that this mindset, combined with the rising financial risks associated with breaches, necessitates a shift towards a security-centric operational model. The cybersecurity services market is projected to grow significantly, presenting opportunities for IT service providers that prioritize security.Apple has announced a substantial increase in its bug bounty program, now offering up to $5 million for critical vulnerabilities. This move reflects the growing importance of addressing security challenges within its ecosystem, which includes over 2.35 billion active devices. The company has previously awarded millions to security researchers, emphasizing its commitment to user privacy and security. As the landscape of cybersecurity evolves, managed service providers (MSPs) are urged to tighten vendor monitoring, incorporate AI risk assessments, and focus on continuous assurance to meet the increasing demands for security. Three things to know today00:00 Cybersecurity Crossroads: F5 Breach, AI Risk, and Apple's $5M Bug Bounty Signal Security Accountability06:44 Nearly a Third of MSPs Admit to Preventable Microsoft 365 Data Loss, Syncro Survey Finds09:22 AI Reality Check: Workers' Overconfidence, Cheaper Models, and Microsoft's Scientific Breakthrough Signal Maturity in the Market This is the Business of Tech.     Supported by:  https://mailprotector.com/mspradio/ 

Forrester's latest report indicates that the AI hype wave is reaching its peak, with many enterprises expected to delay a significant portion of their AI spending until 2027 due to challenges in proving return on investment (ROI). As a response to increasing regulatory complexities, 60% of Fortune 100 companies are anticipated to appoint heads of AI governance by next year. This shift highlights a growing focus on compliance and risk management rather than pure innovation. Meanwhile, G2's findings present a contrasting narrative, revealing that nearly 60% of companies have successfully deployed AI agents, with a low failure rate and high satisfaction among users.Despite the positive deployment statistics from G2, a study by Atlassian uncovers a paradox: while individual usage of AI tools has surged, 96% of businesses report no significant improvements in efficiency or innovation. The survey indicates that only 3% of executives believe AI has driven transformational change within their organizations. This disconnect suggests that while AI tools are being adopted widely, their impact on actual business outcomes remains limited, leading to skepticism among decision-makers.Anthropic's recent research raises concerns about the security of large language models, revealing that as few as 250 malicious documents could effectively poison these models, compromising their functionality. This alarming finding underscores the vulnerabilities present in AI systems, particularly those relying on public or partner data. The implications for businesses are significant, as they must now consider the security of their AI systems alongside their operational capabilities.In the hardware arena, Apple and Intel are igniting a new chip race, with Apple launching its M5 chip, which boasts enhanced AI performance and graphics capabilities. Intel's Panther Lake chip is set to compete with improved efficiency and performance metrics. As AI technology becomes increasingly integrated into devices, managed service providers (MSPs) must adapt to the complexities of endpoint management and AI readiness. The evolving landscape emphasizes the need for governance, security, and effective measurement of AI outcomes, positioning MSPs as crucial enablers in this transition.Four things to know today 00:00 Forrester, G2, Atlassian, and Anthropic Paint a Complex AI Picture — Success, Stagnation, and Security Risk06:09 Apple's M5 and Intel's Panther Lake Show the Future: Every Device Becomes an AI Engine09:17 GoTo, Gradient, and LevelBlue Show the Next MSP Evolution — Refinement, Not Reinvention12:21 Microsoft's Final Windows 10 Update and IE Mode Lockdown Signal the End of Legacy Tolerance This is the Business of Tech.    Supported by:  https://try.auvik.com/dave-switchhttps://scalepad.com/dave/

AI is revolutionizing IT service management, significantly enhancing productivity and operational efficiency. A recent report indicates that AI has reduced ticket resolution times by an impressive 76%, allowing IT teams to focus on more complex issues. However, the rapid adoption of generative AI, particularly in high-stakes areas like mergers and acquisitions, raises serious concerns about data security, with a significant percentage of businesses expressing worries over data quality and ethical considerations. The prevalence of unapproved AI tools among employees further complicates governance, as many are using these tools without oversight, highlighting the need for managed AI governance.California has taken a pioneering step in regulating AI by passing a landmark bill that mandates safety protocols for chatbot operators. This legislation aims to protect vulnerable users, particularly children, by requiring age verification and safety measures related to suicidal thoughts. The law, which will take effect in January 2026, reflects a growing trend toward AI regulation, emphasizing the importance of safety in technology. Meanwhile, the Federal Communications Commission is considering changes that could allow internet service providers to hide fees again, which could impact transparency for consumers.The Cybersecurity and Infrastructure Security Agency (CISA) is facing challenges as layoffs affect key divisions responsible for national security and infrastructure. These layoffs come at a time when the private sector is increasingly responsible for cybersecurity, especially amid rising AI-driven threats. The reduction in federal coordination raises concerns about the ability to effectively manage these threats, placing more pressure on managed service providers (MSPs) to ensure security and compliance for their clients.Microsoft has announced the end of support for Windows 10, prompting a critical need for MSPs to reassess endpoint security and upgrade strategies. With a significant portion of users still on Windows 10, the lack of ongoing updates poses a risk for vulnerabilities. This transition presents an opportunity for MSPs to not only push for upgrades but also to enhance security policies and prepare clients for future technological advancements, including AI integration. The evolving landscape of technology and regulation underscores the necessity for MSPs to adapt and provide comprehensive governance and security solutions. Four things to know today00:00 AI Is Working — and Breaking Rules: Efficiency Soars, But Governance Falls Behind 04:10 AI Regulation Splinters: California Targets Chatbots, FCC Eyes Fee Rollbacks, and CISA Cuts Staff07:52 The AI Assistant Race Escalates — Copilot, Slackbot, and Salesforce All Target Your Inbox and Workflow11:12 Windows 10 Support Ends — Microsoft's Upgrade Glitch, Paid Extensions, and Opportunity for MSPsThis is the Business of Tech.   Supported by:  https://saasalerts.com/mspradio/ 

The Business of Tech Lounge features a discussion on the evolving landscape of email security, focusing on the modern threats that organizations face today. With email remaining the primary entry point for hackers, the conversation highlights how threats have shifted from simple spam to sophisticated attacks involving AI impersonation and social engineering. Experts Cody Elkley from MailProtector and Mauro Sretari from CIO Landing delve into the specifics of these threats, emphasizing the need for Managed Service Providers (MSPs) to adapt their strategies to stay ahead of potential risks.Cody explains that the nature of email threats has changed significantly over the past five years, moving from volume-based spam to targeted attacks aimed at specific individuals within organizations. Mauro adds that AI is now being leveraged by threat actors to create highly personalized phishing attempts, which can bypass traditional security measures. The discussion underscores the importance of a multi-layered security approach, where MSPs must implement robust email security protocols to protect their clients effectively.The experts also discuss the technical aspects of modern email security architecture, contrasting legacy systems with newer API-driven solutions. Cody highlights the advantages of using APIs, which allow for deeper analysis of email content and better detection of threats before they reach users. Mauro emphasizes the need for MSPs to evaluate vendors based on their integration capabilities and the usability of their security tools, ensuring that they can provide effective protection without overwhelming their clients.As the conversation wraps up, both Cody and Mauro predict that the future will see an increase in AI-assisted phishing and deepfake impersonation attacks. They stress the importance of ongoing communication between vendors and MSPs to share insights and updates on emerging threats. The episode concludes with a call for MSPs to remain vigilant and proactive in their email security strategies, adapting to the rapidly changing threat landscape to safeguard their clients' information.

AI's increasing demand for memory and storage is leading to a significant pricing crisis in the hardware market, with projections indicating that this situation could persist for the next decade. Analysts and manufacturers are warning of impending shortages of NAND and DRAM, essential components for solid-state drives and memory. The price of NAND Flash has already surged by over 100% in just six months, and DDR4 memory products are expected to rise by up to 43% in the third quarter of 2025. This crisis is largely driven by major AI projects, such as OpenAI's Stargate initiative, which could consume a staggering 40% of global DRAM output.Despite broader economic challenges, the tech sector is experiencing a rebound in hiring, particularly in Silicon Valley, where AI companies are driving a resurgence in the office market. Job postings for software developers, cybersecurity engineers, and AI engineers have seen notable increases, even as the private sector overall lost jobs. The demand for tech talent remains high, with international tech workers still viewing the U.S. as an attractive destination. This shift contradicts earlier predictions that AI would lead to widespread job losses, instead highlighting a transformation in workforce dynamics.The podcast also discusses a significant shift in the perception of market development funds (MDF) among channel partners. Traditional MDF programs are becoming obsolete, with partners now prioritizing outcome-based funds and training that enhance capabilities and align with customer success. This change reflects a broader trend in vendor-partner relationships, where partners seek strategic alliances focused on measurable outcomes rather than outdated financial support for marketing activities. The evolving landscape emphasizes the need for specialization and collaboration to thrive in the current market.Finally, the episode touches on the concept of "inshittification," particularly in relation to Amazon's declining customer-centric approach as it prioritizes profits over user experience. This trend raises concerns about the future of online commerce and the trustworthiness of platforms. Additionally, the discussion includes insights on employee satisfaction post-IPO, the evolution of AI technology at Notion, and the challenges faced by OpenAI as it navigates financial losses. These topics prompt critical reflections on vendor relationships, the impact of public offerings on innovation, and the readiness of clients for advanced AI systems. Four things to know today00:00 AI Boom Sparks Global Memory Shortage, Driving Decade-Long Hardware Price Surge04:23 AI Fuels Tech Hiring Surge as U.S. Job Market Splits in Two07:14 MDF Is Dead: Partners Demand Outcome-Based Funding and Strategic Enablement10:10 Amazon's Enshittification, IPO Fallout, and OpenAI's Struggle — Strategy Lessons for IT Providers This is the Business of Tech.    Supported by:  https://getflexpoint.com/msp-radio/https://scalepad.com/dave/ Webinar:  https://bit.ly/msprmail

AI-powered cyberattacks are rapidly evolving, prompting a significant shift in cybersecurity strategies. According to a recent Gartner report, IT leaders are expected to allocate over half of their cybersecurity budgets to preemptive defense measures by 2030. This change is driven by the inadequacy of traditional detection and response tools in the face of sophisticated cyber threats, particularly those enhanced by artificial intelligence. Experts warn that while preemptive measures can mitigate risks, organizations may encounter challenges in integrating these new systems and overcoming cultural inertia.Datadog's 2025 State of Cloud Security Report highlights a growing trend among organizations adopting data perimeters to combat credential theft, with 40% of organizations implementing this advanced security practice. Additionally, 86% of organizations are utilizing multi-account setups within AWS, which allows for better enforcement of security protocols. Meanwhile, OpenAI's report reveals that cybercriminals are increasingly leveraging AI for malicious activities, including phishing and surveillance, showcasing the urgent need for enhanced cybersecurity measures.In response to market pressures, Synology has reversed its policy on drive restrictions for its network-attached storage models, allowing the use of non-validated third-party drives. This decision comes after user feedback indicated dissatisfaction with the previous requirement for proprietary drives, which were often more expensive. For managed service providers (MSPs), this change offers greater flexibility and cost-effectiveness, making Synology's products more appealing once again.Pax8 has launched the Pax8 Agent Store, a platform designed to help MSPs adopt and offer AI-driven tools to small and medium-sized businesses. This marketplace aims to facilitate the integration and monetization of intelligent automation solutions, with early access set for December 2025. Additionally, SolarWinds has introduced an AI agent to enhance operational resilience for IT teams, while Barracuda Networks has launched Barracuda Research, a centralized resource for threat intelligence. Both initiatives aim to empower organizations in managing cybersecurity threats more effectively. Four things to know today00:00 Gartner, OpenAI, Datadog, and DHS Paint a Stark Cyber Future: AI Attacks Surge, Budgets Shift, and Defenses Fracture06:01 New Pax8 Platform Targets Repeatable AI Services, Sets Early Access for December08:03 Synology Reverses Course on Pricey Drives — Because You Stopped Buying09:53 SolarWinds and Barracuda Push AI to Ease IT Burdens—But Can They Deliver Real Value? This is the Business of Tech.     Supported by:  Comet, Scalepad Webinar:  https://bit.ly/msprmail

Kaseya made headlines at DattoCon by announcing its shift to becoming an “AI-first” company, highlighted by its acquisition of INKY, a generative AI email security provider. Alongside this, the company unveiled new Datto products and teased its upcoming Cyber Resiliency Platform for 2026. While Kaseya's vision of unified, intelligent automation sounds ambitious, many managed service providers (MSPs) remain skeptical, wanting to see real product integration rather than marketing promises.AI's impact on the workforce also dominated discussion, with reports showing that one in seven U.S. jobs faces automation risk. However, experts emphasize that AI isn't eliminating jobs—it's transforming them. The real challenge for businesses lies in broken workflows and poor operational readiness, not the technology itself. For MSPs, this creates a new opportunity to help organizations document processes, integrate AI effectively, and deliver measurable ROI.Meanwhile, OpenAI's trillion-dollar compute deals with major tech firms reveal the escalating financial pressure behind the AI race. Despite massive commitments with Nvidia, AMD, and Oracle, analysts question the sustainability of such spending as compute costs surge. This “AI bubble” highlights that power and price, not innovation, may soon be the industry's greatest constraints, pushing businesses toward efficiency and smarter workloads.Finally, companies like Snowflake, IBM, Otter.ai, and Google are leading the next evolution of AI—turning it into infrastructure. From data management and cost-efficient models to meeting automation and browser-based AI agents, these developments mark the shift from experimentation to real-world integration. The emerging “intelligence layer” means that AI will soon underpin how services, systems, and workflows connect, defining the next frontier for MSPs and tech providers alike. Four things to know today 00:00 At DattoCon, Kaseya Sells an AI Future — But MSPs Want Proof, Not Promises04:19 AI Isn't Taking Jobs — It's Exposing Broken Workflows and Creating a New Service Market06:41 AI's Real Risk: Not Job Loss, But Business Disorganization and Soaring Compute Costs08:42 The Intelligence Layer Emerges: Snowflake, IBM, Otter, and Google Show How AI Becomes Infrastructure  This is the Business of Tech.     Supported by:  https://scalepad.com/dave/https://cometbackup.com/?utm_source=mspradio&utm_medium=podcast&utm_campaign=sponsorship

OpenAI has made significant strides in the AI landscape with a series of announcements that position it as a leading platform in the industry. The introduction of new models, including the GPT-5 Pro and Sora 2, alongside app integrations like Slack and a new Apps SDK, marks a pivotal moment for the company. These developments aim to enhance user interaction and streamline workflows, allowing users to perform tasks directly within the ChatGPT interface. The partnership with Advanced Micro Devices (AMD) for a multi-billion dollar chip deal further solidifies OpenAI's commitment to expanding its computing capabilities, crucial for the advancement of its AI technologies.In a contrasting scenario, Deloitte has faced scrutiny after delivering a flawed report to the Australian government, which included errors attributed to the use of AI. Despite this setback, Deloitte is moving forward with a significant partnership with Anthropic to deploy their AI chatbot, Claude, across its workforce. This juxtaposition highlights the challenges and risks associated with AI integration in business operations, emphasizing the need for careful governance and oversight. The incident serves as a cautionary tale about the potential pitfalls of relying too heavily on AI without proper verification.The podcast also discusses the broader implications of AI adoption in enterprises, revealing that a majority of AI projects are failing due to governance gaps and a lack of trust in the technology. A survey by Gartner indicates that many IT leaders are concerned about regulatory compliance, with only a small percentage feeling confident in their organizations' ability to manage AI tools effectively. This situation underscores the importance of establishing robust governance frameworks to ensure that AI implementations are both effective and trustworthy.As the AI landscape continues to evolve, the podcast suggests that service providers should pivot towards building governance frameworks and risk management strategies rather than simply promoting AI hype. The focus should shift to creating value through responsible AI use, ensuring that clients can trust the technology they are implementing. This new approach positions governance as a critical service line, essential for navigating the complexities of AI adoption and maintaining client trust in an increasingly automated world. Three things to know today 00:00 OpenAI Builds the Windows of AI: New Models, App Store, SDKs, and a Chip Deal Signal Platform Takeover06:50 Deloitte's AI Paradox — A Costly Error in Australia, Followed by Its Biggest AI Expansion Yet09:38 AI's Next Frontier Isn't Innovation — It's Accountability, and That's Where MSPs Win This is the Business of Tech.    Supported by:  https://mailprotector.com/  All our Sponsors: https://businessof.tech/sponsors/ Do you want the show on your podcast app or the written versions of the stories? Subscribe to the Business of Tech: https://www.businessof.tech/subscribe/Looking for a link from the stories? The entire script of the show, with links to articles, are posted in each story on https://www.businessof.tech/ Support the show on Patreon: https://patreon.com/mspradio/ Want to be a guest on Business of Tech: Daily 10-Minute IT Services Insights? Send Dave Sobel a message on PodMatch, here: https://www.podmatch.com/hostdetailpreview/businessoftech Want our stuff? Cool Merch? Wear “Why Do We Care?” - Visit https://mspradio.myspreadshop.com Follow us on:LinkedIn: https://www.linkedin.com/company/28908079/YouTube: https://youtube.com/mspradio/Facebook: https://www.facebook.com/mspradionews/Instagram: https://www.instagram.com/mspradio/TikTok: https://www.tiktok.com/@businessoftechBluesky: https://bsky.app/profile/businessof.tech Hosted by Simplecast, an AdsWizz company. See pcm.adswizz.com for information about our collection and use of personal data for advertising.

Enterprises are significantly increasing their investments in AI governance as the risks associated with artificial intelligence become more apparent. A recent report indicates that 98% of organizations plan to boost their governance budgets in the coming financial year, with an average expected increase of 24%. This shift highlights the realization that managing AI is not a plug-and-play solution; organizations must establish multiple lines of defense to handle risks effectively. As AI technologies evolve, refining governance will be an ongoing process, especially as companies face incidents that could lead to substantial financial losses.Public cloud spending is projected to increase dramatically, primarily driven by generative AI workloads. A survey reveals that nearly half of IT leaders expect more than 30% of their cloud budgets to be allocated to generative AI in the coming years. This rapid adoption of generative AI applications necessitates improved cloud cost management strategies, as enterprises brace for higher infrastructure costs. Analysts warn that the financial models supporting this AI boom, particularly for companies like Oracle, which may need to borrow significantly to meet obligations, raise concerns about sustainability.Despite fears of job losses due to AI, a study from Yale University indicates that generative AI has not yet significantly disrupted the job market. The research shows only a slight change in the occupational mix since the launch of ChatGPT, with hiring in the tech sector remaining steady. A significant portion of tech employers plan to hire, particularly for roles related to AI, indicating that the demand for skills like Python and project management is driving this trend. The study suggests that while generative AI has transformative potential, it is too early to assess its long-term effects on employment.In a notable industry development, Huntress has partnered with SureWeb to expand its cybersecurity solutions, marking its first distribution deal. This collaboration allows Huntress's products to be available in the SureWeb marketplace, enhancing security offerings for managed service providers across various regions. The partnership emphasizes the importance of relationships over transactions, contrasting with larger marketplaces. This move reflects a growing trend where vendors prioritize community-focused partnerships, providing opportunities for service providers to access quality cybersecurity solutions while navigating the evolving landscape of AI and technology.Four things to know today 00:00 AI's Hidden Cost: Governance Budgets Up, Cloud Bills Soar, and Debt Piles High Behind the Boom05:25 Government Shutdown and Policy Turmoil, Not AI, Emerging as Real Threats to U.S. Employment10:17 Pax8's “Managed Intelligence” Push Highlights Growing Tension Between AI Hype and MSP Readiness13:28 Huntress and Sherweb Redefine Channel Strategy with Relationship-First Distribution Model This is the Business of Tech.    Supported by:  https://cometbackup.com/?utm_source=mspradio&utm_medium=podcast&utm_campaign=sponsorshiphttps://www.auvik.com/              Webinar:   https://bit.ly/msprmail  All our Sponsors: https://businessof.tech/sponsors/ Do you want the show on your podcast app or the written versions of the stories? Subscribe to the Business of Tech: https://www.businessof.tech/subscribe/Looking for a link from the stories? The entire script of the show, with links to articles, are posted in each story on https://www.businessof.tech/ Support the show on Patreon: https://patreon.com/mspradio/ Want to be a guest on Business of Tech: Daily 10-Minute IT Services Insights? Send Dave Sobel a message on PodMatch, here: https://www.podmatch.com/hostdetailpreview/businessoftech Want our stuff? Cool Merch? Wear “Why Do We Care?” - Visit https://mspradio.myspreadshop.com Follow us on:LinkedIn: https://www.linkedin.com/company/28908079/YouTube: https://youtube.com/mspradio/Facebook: https://www.facebook.com/mspradionews/Instagram: https://www.instagram.com/mspradio/TikTok: https://www.tiktok.com/@businessoftechBluesky: https://bsky.app/profile/businessof.tech Hosted by Simplecast, an AdsWizz company. See pcm.adswizz.com for information about our collection and use of personal data for advertising.

Full transcript and links to extended interviews is at https://businessof.tech/podcast/datto-sues-slide-2025/What happens when a founder returns to disrupt the company he built, and that company sues him for stealing its secrets? This is the central conflict in the case of Datto v. Slide, a legal battle unfolding in Delaware. Datto, now owned by Kaseya, accuses Slide, founded by former Datto CEO Austin McCord, of misappropriating proprietary technology related to its Hardware Independent Restore (HIR) system. Slide, on the other hand, asserts that it developed its technology independently and that Datto's lawsuit is merely a distraction from the reality that better products will prevail in the market. The lawsuit includes multiple allegations, such as trade secret misappropriation and unfair competition. Datto claims that Slide's technology closely resembles its own HIR, which allows for near-instant recovery of systems across different virtual environments. The complaint details how Datto's HIR operates and the proprietary elements it encompasses, arguing that Slide's founders had access to these trade secrets and used them to expedite their competing platform. Slide counters these claims by emphasizing that its product was built from the ground up, utilizing modern tools and practices that do not infringe on Datto's intellectual property. To provide further context, the podcast features interviews with Slide's founders, who discuss the safeguards they implemented during development to ensure compliance with legal obligations and to avoid using any confidential information from Datto. They assert that their technology is fundamentally different and that their marketing strategies, including a dramatic demonstration involving the destruction of Datto hardware, were intended as light-hearted competition rather than disparagement. The conversation highlights the importance of transparency and trust for Managed Service Providers (MSPs) considering which platform to support. The episode also delves into the broader implications of the case, particularly how litigation can serve as a competitive strategy in a consolidating market. With Kaseya reportedly carrying significant debt, the lawsuit may reflect a defensive posture rather than a commitment to innovation. For MSPs, the ongoing legal battle raises questions about vendor reliability and the potential distractions that litigation can create. Ultimately, the podcast suggests that while the case may settle, the reputational costs for Kaseya could be substantial, impacting its image as a channel-friendly company. 00:00 Intro: Founder vs Incumbent01:45 Case Summary: Datto v. Slide Explained02:22 Inside HIR: The Alleged Trade Secret04:47 Slide's Defense06:05 Timeline and Next Steps08:36 Interview: Slide Founders Respond14:04 Expert Analysis: Bob Zeidman20:10 Expert Analysis: Prof. Camilla Hrdy24:10 Market Context: Kaseya's Debt & Strategy26:24 Lessons for MSPs28:33 Closing Take: What This Means for the Channel All our Sponsors: https://businessof.tech/sponsors/ Do you want the show on your podcast app or the written versions of the stories? Subscribe to the Business of Tech: https://www.businessof.tech/subscribe/Looking for a link from the stories? The entire script of the show, with links to articles, are posted in each story on https://www.businessof.tech/ Support the show on Patreon: https://patreon.com/mspradio/ Want to be a guest on Business of Tech: Daily 10-Minute IT Services Insights? Send Dave Sobel a message on PodMatch, here: https://www.podmatch.com/hostdetailpreview/businessoftech Want our stuff? Cool Merch? Wear “Why Do We Care?” - Visit https://mspradio.myspreadshop.com Follow us on:LinkedIn: https://www.linkedin.com/company/28908079/YouTube: https://youtube.com/mspradio/Facebook: https://www.facebook.com/mspradionews/Instagram: https://www.instagram.com/mspradio/TikTok: https://www.tiktok.com/@businessoftechBluesky: https://bsky.app/profile/businessof.tech Hosted by Simplecast, an AdsWizz company. See pcm.adswizz.com for information about our collection and use of personal data for advertising.

Mal Vivek, founder and CEO of Zeb, discusses the rapid growth of her firm, which has become a leader in digital and AI transformation. Zeb has established itself as one of the fastest-growing AWS Premier Tier and Databricks partners, primarily by addressing the challenges small and medium businesses face in implementing AI solutions. Vivek emphasizes the importance of understanding each client's unique business model and tailoring AI solutions to meet their specific needs, rather than offering a one-size-fits-all approach.Vivek highlights the significant shift in lead generation strategies among their clients, who are increasingly utilizing AI to create more targeted and high-quality leads. This change reflects a broader trend where businesses are moving away from traditional lead lists and instead developing custom AI systems that align with their ideal customer profiles. Additionally, she notes the importance of training and upskilling employees through AI, enabling them to access vast amounts of knowledge quickly and efficiently.The conversation also touches on the concept of an "AI-first strategy," which varies in definition across different organizations. For Zeb, this strategy involves identifying repetitive tasks that can be enhanced through AI while ensuring that the human touch remains integral to the customer experience. Vivek stresses the need for restraint in digital transformation, arguing that not every process should be automated, especially when personal interaction is a key component of a business's success.Finally, Vivek discusses the evolving business models driven by AI, including a shift towards value-based pricing. She explains how Zeb structures its pricing around measurable outcomes and mutual agreements on success metrics, ensuring that both the firm and its clients benefit from the results achieved. This approach not only fosters accountability but also aligns the interests of Zeb with those of its customers, ultimately driving better business outcomes. All our Sponsors: https://businessof.tech/sponsors/ Do you want the show on your podcast app or the written versions of the stories? Subscribe to the Business of Tech: https://www.businessof.tech/subscribe/Looking for a link from the stories? The entire script of the show, with links to articles, are posted in each story on https://www.businessof.tech/ Support the show on Patreon: https://patreon.com/mspradio/ Want to be a guest on Business of Tech: Daily 10-Minute IT Services Insights? Send Dave Sobel a message on PodMatch, here: https://www.podmatch.com/hostdetailpreview/businessoftech Want our stuff? Cool Merch? Wear “Why Do We Care?” - Visit https://mspradio.myspreadshop.com Follow us on:LinkedIn: https://www.linkedin.com/company/28908079/YouTube: https://youtube.com/mspradio/Facebook: https://www.facebook.com/mspradionews/Instagram: https://www.instagram.com/mspradio/TikTok: https://www.tiktok.com/@businessoftechBluesky: https://bsky.app/profile/businessof.tech Hosted by Simplecast, an AdsWizz company. See pcm.adswizz.com for information about our collection and use of personal data for advertising.

Diving into the evolving landscape of the partner ecosystem, the discussion centers around three major forces shaping the industry by 2030. First, cloud marketplaces are projected to reach $163 billion in transactions, with nearly 60% of that being partner-led. This shift signifies a redefinition of partner value in the marketplace era, moving beyond traditional procurement methods. Second, the rise of AI services is highlighted, with a projected $267 billion opportunity by 2030, growing at an impressive 35% CAGR. This transition emphasizes the importance of packaging, governance, and delivering measurable outcomes rather than merely developing AI technologies.The conversation also delves into the critical role of cybersecurity as a services multiplier, with a study indicating that for every dollar spent on the CrowdStrike Falcon platform, partners can generate over $7 in services revenue. This statistic underscores the potential for partners to leverage cybersecurity solutions to enhance their service offerings. Jay McBain, Chief Analyst at Omdia, provides insights into how these trends impact channel partners, vendors, and the future of IT services, emphasizing the need for partners to adapt to these changes. As the discussion progresses, the challenges and opportunities for partners in the AI landscape are examined. The conversation points out that while AI is becoming a feature rather than a standalone product, partners must engage with business leaders across various departments to capitalize on the growing demand for AI-driven solutions. The importance of understanding customer needs and aligning services accordingly is stressed, as partners risk being sidelined by larger system integrators and management consultants if they do not adapt.Finally, the dialogue touches on the changing economics of partnering, particularly in light of recent shifts by major vendors like Microsoft and Cisco, which are cutting back on their partner networks. This consolidation raises questions about how partners can continue to thrive in a landscape where margins are shrinking. The emphasis is placed on the necessity for partners to rethink their business models, focusing on delivering high-value services and leveraging the opportunities presented by AI and cybersecurity to ensure sustainable growth in the future. All our Sponsors: https://businessof.tech/sponsors/ Do you want the show on your podcast app or the written versions of the stories? Subscribe to the Business of Tech: https://www.businessof.tech/subscribe/Looking for a link from the stories? The entire script of the show, with links to articles, are posted in each story on https://www.businessof.tech/ Support the show on Patreon: https://patreon.com/mspradio/ Want to be a guest on Business of Tech: Daily 10-Minute IT Services Insights? Send Dave Sobel a message on PodMatch, here: https://www.podmatch.com/hostdetailpreview/businessoftech Want our stuff? Cool Merch? Wear “Why Do We Care?” - Visit https://mspradio.myspreadshop.com Follow us on:LinkedIn: https://www.linkedin.com/company/28908079/YouTube: https://youtube.com/mspradio/Facebook: https://www.facebook.com/mspradionews/Instagram: https://www.instagram.com/mspradio/TikTok: https://www.tiktok.com/@businessoftechBluesky: https://bsky.app/profile/businessof.tech Hosted by Simplecast, an AdsWizz company. See pcm.adswizz.com for information about our collection and use of personal data for advertising.

Perplexity has made a significant move by dropping the price of its AI browser, Comet, from $200 a month to free, igniting what could be an AI browser war. This decision aims to help users navigate the overwhelming amount of low-quality online content by providing tools to summarize web pages and extract key information. A $5 monthly subscription will offer access to content from reputable media outlets, as Perplexity seeks to establish fair revenue-sharing practices with publishers. This shift comes amid ongoing legal challenges regarding content use, but the company emphasizes its commitment to high-quality sources.The recent U.S. government shutdown has led to the expiration of the Cybersecurity and Information Sharing Act of 2015, raising concerns about the future of cybersecurity collaboration. This law provided essential protections for organizations sharing cyber threat intelligence, and its absence is expected to hinder effective incident response. Experts warn that organizations may become more cautious about sharing vital information without the legal protections previously afforded, potentially increasing the risk of cyber attacks as adversaries exploit the disruption.In the tech industry, rumors are circulating about a potential investment deal between Apple and Intel, which raises questions about the future of the chip manufacturer. Apple, having previously transitioned away from Intel chips for its MacBooks, is now considering a collaboration that could see Intel manufacturing chips for Apple's data centers or producing Apple-designed chips. Meanwhile, Apple appears to be stepping back from its Vision Pro headset, which has not gained significant traction in the market, and is instead focusing on developing more affordable smart glasses.Managed service providers (MSPs) are at a critical junction as AI transitions from a luxury to a necessity. A significant portion of organizations lack policies to manage AI adoption effectively, creating both risks and opportunities for service providers. As clients demand faster resolutions and strategic insights, MSPs must modernize their services and establish governance to ensure AI delivers measurable value. The podcast emphasizes the importance of embedding AI capabilities into services rather than selling it as a standalone product, urging providers to focus on delivering outcomes that clients cannot achieve elsewhere.Four things to know today00:00 Perplexity Makes AI Browser Comet Free, Challenging Chrome, Safari, and Edge03:41 U.S. Shutdown Weakens Cyber Defense as Info-Sharing Law Expires, While NIST Races to Build Cyber AI Framework07:09 Apple Rumored to Invest in Intel Amid U.S. Chip Push, While Retreating From Vision Pro in Favor of Smart Glasses10:12 AI Is Becoming the Airline Business: Why MSPs Must Embed Capability, Not Sell Commodity This is the Business of Tech.    Supported by:  https://mailprotector.com/https://timezest.com/mspradio/ Webinar:  https://bit.ly/msprmail  All our Sponsors: https://businessof.tech/sponsors/ Do you want the show on your podcast app or the written versions of the stories? Subscribe to the Business of Tech: https://www.businessof.tech/subscribe/Looking for a link from the stories? The entire script of the show, with links to articles, are posted in each story on https://www.businessof.tech/ Support the show on Patreon: https://patreon.com/mspradio/ Want to be a guest on Business of Tech: Daily 10-Minute IT Services Insights? Send Dave Sobel a message on PodMatch, here: https://www.podmatch.com/hostdetailpreview/businessoftech Want our stuff? Cool Merch? Wear “Why Do We Care?” - Visit https://mspradio.myspreadshop.com Follow us on:LinkedIn: https://www.linkedin.com/company/28908079/YouTube: https://youtube.com/mspradio/Facebook: https://www.facebook.com/mspradionews/Instagram: https://www.instagram.com/mspradio/TikTok: https://www.tiktok.com/@businessoftechBluesky: https://bsky.app/profile/businessof.tech Hosted by Simplecast, an AdsWizz company. See pcm.adswizz.com for information about our collection and use of personal data for advertising.

Small to medium-sized businesses (SMBs) are significantly increasing their technology budgets, focusing on strategic investments that support long-term growth. According to a study by Forrester Consulting, 88% of SMBs plan to enhance their cloud strategies and cybersecurity through increased spending on third-party services. The study also highlights a growing emphasis on improving customer experience and reducing enterprise risk, with cloud-based disaster recovery solutions and hybrid cloud strategies becoming essential. However, the integration of AI services into the economy is expected to take years, as businesses need time to learn about new AI products and train their employees.The UK government has issued a second Technical Capability Notice requiring Apple to provide access to encrypted data and messages of British users stored on its iCloud service. This directive follows a previous request that raised diplomatic tensions with the US and has led Apple to withdraw its Advanced Data Protection Service in the UK, weakening user privacy. The implications of this move are significant for SMBs that rely on iCloud, as it introduces potential security risks and highlights the need for additional encryption measures.Microsoft is facing pushback as it prepares to end free security updates for Windows 10, which is set to occur on October 14, 2025. A coalition of organizations, including repair shops and advocacy groups, is urging Microsoft to extend these updates, citing concerns that many PCs will be left insecure or unusable. With a significant portion of Windows 10 machines unable to upgrade to Windows 11, businesses are left with difficult choices regarding their operating systems, potentially leading to increased e-waste.In the realm of AI, major companies like Microsoft, Salesforce, and Stripe are launching new tools that integrate AI capabilities into their existing platforms. Microsoft has introduced Microsoft 365 Premium, which combines Office applications with AI features, while Salesforce has launched AgentForce Fibes, a tool that streamlines coding through natural language. Stripe's new instant checkout feature within ChatGPT allows users to purchase products directly from chat interfaces. These developments indicate that AI is becoming an integral part of business infrastructure, and MSPs must focus on helping clients leverage these tools effectively to drive business outcomes.Four things to know today00:00 SMBs Are Increasing Tech Budgets for Cloud, Cybersecurity, and AI, But Forrester Warns True AI Value Will Take Years to Realize04:07 UK Pressures Apple on iCloud Again, Forcing Encryption Rollback That Puts Privacy, Business Security, and Global Precedent at Risk05:39 Windows 10 Sunset Becomes a Flashpoint: Market Share, Hardware Incompatibility, and Sustainability Collide in Microsoft's 2025 Deadline08:23 From Office to Checkout: Microsoft, Salesforce, Stripe, OpenAI, and Google Push AI Into Everyday Work and Consumer Life This is the Business of Tech.    Supported by:  https://scalepad.com/dave/https://mailprotector.com/ Webinar:  https://bit.ly/msprmail All our Sponsors: https://businessof.tech/sponsors/ Do you want the show on your podcast app or the written versions of the stories? Subscribe to the Business of Tech: https://www.businessof.tech/subscribe/Looking for a link from the stories? The entire script of the show, with links to articles, are posted in each story on https://www.businessof.tech/ Support the show on Patreon: https://patreon.com/mspradio/ Want to be a guest on Business of Tech: Daily 10-Minute IT Services Insights? Send Dave Sobel a message on PodMatch, here: https://www.podmatch.com/hostdetailpreview/businessoftech Want our stuff? Cool Merch? Wear “Why Do We Care?” - Visit https://mspradio.myspreadshop.com Follow us on:LinkedIn: https://www.linkedin.com/company/28908079/YouTube: https://youtube.com/mspradio/Facebook: https://www.facebook.com/mspradionews/Instagram: https://www.instagram.com/mspradio/TikTok: https://www.tiktok.com/@businessoftechBluesky: https://bsky.app/profile/businessof.tech Hosted by Simplecast, an AdsWizz company. See pcm.adswizz.com for information about our collection and use of personal data for advertising.

Artificial intelligence is reshaping the technology services landscape, with leading reports from IDC, Gartner, and new offerings from ServiceNow pointing to a future where managing AI sprawl becomes as critical as delivering AI capabilities themselves. High-performing channel partners are leaning into AI specialization, driving measurable outcomes for customers and fueling double-digit growth despite market pressures. At the same time, ServiceNow's “AI Experience” platform aims to consolidate fragmented AI tools, offering a unified interface that can streamline operations and reduce complexity. The broader market, according to Gartner, is accelerating rapidly, with spending on generative AI projected to surpass traditional software in the coming years—meaning providers who fail to deliver outcomes risk being left behind.Yet the rise of AI isn't all progress. Studies from Stanford, European labor groups, and cybersecurity organizations reveal a governance crisis brewing in workplaces. Workers are reporting a surge of “workslop”—AI-generated content that looks like productivity but creates no value—costing companies billions. Algorithmic management is eroding worker autonomy, while surveillance and data risks undermine trust in employers. To compound the problem, employees are increasingly feeding sensitive data into AI systems without adequate training, raising new security vulnerabilities. These trends highlight the urgent need for policies, training, and governance frameworks to ensure AI adds value instead of chaos.The disruption is also spilling into specific industries. In translation, human professionals are already being displaced as AI-driven tools gain adoption. WhatsApp's newly built-in translation capability demonstrates how “good enough” AI can be enough for most users, sidelining human expertise except in fields requiring deep cultural or contextual understanding. The translation sector serves as an early warning sign: as AI grows more capable, other professions—including legal research, finance, and customer support—face similar pressures. The lesson for providers is to help clients identify where AI is appropriate and where human oversight remains essential.Meanwhile, major vendors are steadily encroaching into IT services, redrawing the lines of what MSPs can offer. Acronis is embedding patch management into its backup suite, Slack is introducing AI-powered ticket deflection, GoTo and Nexthink are fusing support and analytics, and IBM is shifting developer tooling to its hosted cloud. Each move chips away at traditional MSP offerings, putting pressure on providers to adapt. The opportunity lies in integration and governance—helping customers unify fragmented tools, ensure compliance, and deliver outcomes that vendors alone cannot. For MSPs, the message is clear: evolve toward higher-value services, or risk being sidelined by the very vendors you once partnered with.Four things to know today00:00 From Growth to Governance: IDC, Gartner, and ServiceNow Show Where AI Is Headed for Partners and Customers05:07 AI at Work: “Workslop,” Surveillance, and Data Leaks Signal Rising Governance Crisis08:42 From WhatsApp to Workflows: AI Translation Disruption Signals Broader Job Shifts Ahead11:33 Vendors Expand Into IT Services: Acronis, Slack, IBM, and GoTo Redraw the MSP Value Line This is the Business of Tech.   Supported by: https://scalepad.com/dave/https://cometbackup.com/?utm_source=mspradio&utm_medium=podcast&utm_campaign=sponsorship Webinar:  https://bit.ly/msprmail All our Sponsors: https://businessof.tech/sponsors/ Do you want the show on your podcast app or the written versions of the stories? Subscribe to the Business of Tech: https://www.businessof.tech/subscribe/Looking for a link from the stories? The entire script of the show, with links to articles, are posted in each story on https://www.businessof.tech/ Support the show on Patreon: https://patreon.com/mspradio/ Want to be a guest on Business of Tech: Daily 10-Minute IT Services Insights? Send Dave Sobel a message on PodMatch, here: https://www.podmatch.com/hostdetailpreview/businessoftech Want our stuff? Cool Merch? Wear “Why Do We Care?” - Visit https://mspradio.myspreadshop.com Follow us on:LinkedIn: https://www.linkedin.com/company/28908079/YouTube: https://youtube.com/mspradio/Facebook: https://www.facebook.com/mspradionews/Instagram: https://www.instagram.com/mspradio/TikTok: https://www.tiktok.com/@businessoftechBluesky: https://bsky.app/profile/businessof.tech Hosted by Simplecast, an AdsWizz company. See pcm.adswizz.com for information about our collection and use of personal data for advertising.

The episode starts with the passage of California's groundbreaking AI transparency law, marking the first legislation in the United States that mandates large AI companies to disclose their safety protocols and provide whistleblower protections. This law applies to major AI labs like OpenAI, Anthropic, and Google DeepMind, requiring them to report critical safety incidents to California's Office of Emergency Services and ensure safety for communities while promoting AI growth. This regulation is a clear signal that the compliance wave surrounding AI is real, with California leading the charge in shaping the future of AI governance.The second story delves into a new cybersecurity risk in the form of the first known malicious Model Context Protocol (MCP) server discovered in the wild. A rogue npm package, "postmark-mcp," was found to be forwarding email data to an external address, exposing sensitive communications. This incident raises concerns about the security of software supply chains and highlights how highly trusted systems like MCP servers are being exploited. Service providers are urged to be vigilant, as this attack marks the emergence of a new vulnerability within increasingly complex software environments.Moving to Microsoft, the company is revamping its Marketplace to introduce stricter partner rules and enhanced discoverability for partner solutions. Microsoft's new initiative, Intune for MSPs, aims to address the needs of managed service providers who have long struggled with multi-tenancy management. Additionally, the company's new "Agent Mode" in Excel and Word promises to streamline productivity by automating tasks but has raised concerns over its accuracy. Despite the potential, Microsoft's tightening ecosystem requires careful navigation for both customers and partners, with compliance and risk management being central to successful engagement.Finally, Broadcom's decision to end support for VMware vSphere 7 has left customers with difficult decisions. As part of Broadcom's transition to a subscription-based model, customers face either costly upgrades, cloud migrations, or reliance on third-party support. Gartner predicts that a significant number of VMware customers will migrate to the cloud in the coming years, and this shift presents a valuable opportunity for service providers to act as trusted advisors in guiding clients through the transition. For those who can manage the complexity of this migration, there's a once-in-a-generation opportunity to capture long-term customer loyalty. Three things to know today00:00 California Enacts Nation's First AI Transparency Law, Mandating Safety Disclosures and Whistleblower Protections05:25 First Malicious MCP Server Discovered, Exposing Email Data and Raising New Software Supply Chain Fears07:16 Microsoft's New Playbook: Stricter Marketplace, Finally Some MSP Love, and AI That's Right Only Half the Time11:07 VMware Customers Face Subscription Shift, Rising Cloud Moves, and Risky Alternatives as Broadcom Ends vSphere 7 This is the Business of Tech.   Supported by: https://scalepad.com/dave/https://mailprotector.com/ Webinar:  https://bit.ly/msprmail All our Sponsors: https://businessof.tech/sponsors/ Do you want the show on your podcast app or the written versions of the stories? Subscribe to the Business of Tech: https://www.businessof.tech/subscribe/Looking for a link from the stories? The entire script of the show, with links to articles, are posted in each story on https://www.businessof.tech/ Support the show on Patreon: https://patreon.com/mspradio/ Want to be a guest on Business of Tech: Daily 10-Minute IT Services Insights? Send Dave Sobel a message on PodMatch, here: https://www.podmatch.com/hostdetailpreview/businessoftech Want our stuff? Cool Merch? Wear “Why Do We Care?” - Visit https://mspradio.myspreadshop.com Follow us on:LinkedIn: https://www.linkedin.com/company/28908079/YouTube: https://youtube.com/mspradio/Facebook: https://www.facebook.com/mspradionews/Instagram: https://www.instagram.com/mspradio/TikTok: https://www.tiktok.com/@businessoftechBluesky: https://bsky.app/profile/businessof.tech Hosted by Simplecast, an AdsWizz company. See pcm.adswizz.com for information about our collection and use of personal data for advertising.

The global IT services market is projected to grow significantly, reaching nearly $3 trillion by 2033, driven by the increasing adoption of cloud services, digital transformation, and a rising demand for automation and cybersecurity solutions. Proactive IT services currently dominate the market, accounting for over half of the share, particularly in heavily regulated sectors like banking, financial services, and healthcare. However, the growth of AI adoption is being hindered by spiraling legacy IT costs, which stall modernization efforts and create opportunities for IT service providers to assist organizations in bridging the gap between outdated systems and modern solutions.Investment in artificial intelligence is also on the rise, with global spending expected to reach nearly $1.5 trillion this year and surpass $2 trillion next year. The focus of this investment is broadening beyond traditional tech giants, with significant contributions from Chinese companies and new AI cloud providers. Despite concerns about job displacement due to AI, a recent survey indicates that most business leaders believe AI will enhance employee support rather than lead to significant job cuts. This highlights the importance of training and change management as organizations adapt to new technologies.Major players in the IT sector, such as Microsoft, Intuit, and OpenAI, are making significant advancements in their AI offerings. Microsoft has launched a centralized AI marketplace, integrating thousands of applications to simplify access for businesses. Intuit has improved its generative AI operating system for financial management, while OpenAI has introduced collaborative features for ChatGPT, enhancing team productivity. These developments underscore the competitive landscape as companies race to control the AI stack and provide valuable tools for enterprises.As organizations face the challenges of legacy IT systems and the need for modernization, IT service providers have a crucial role to play. They must help clients navigate the complexities of integrating new technologies while managing the human side of the transition. The emphasis on proactive services, employee training, and effective change management will be essential for businesses to thrive in an increasingly AI-driven environment. The future of IT services lies not just in technological advancements but in the ability to support clients through their transformation journeys.Three things to know today 00:00 Proactive IT Services Lead $1.5 Trillion Market, Banking and Healthcare Fuel Demand05:57 Legacy IT Costs Surging, Report Finds, Forcing Enterprises Toward Modernization07:45 From Marketplaces to Machine Learning: Tech Giants Position AI as Core Business Infrastructure This is the Business of Tech.    Supported by: https://timezest.com/mspradio/https://mailprotector.com/ Webinar:   https://bit.ly/msprmail All our Sponsors: https://businessof.tech/sponsors/ Do you want the show on your podcast app or the written versions of the stories? Subscribe to the Business of Tech: https://www.businessof.tech/subscribe/Looking for a link from the stories? The entire script of the show, with links to articles, are posted in each story on https://www.businessof.tech/ Support the show on Patreon: https://patreon.com/mspradio/ Want to be a guest on Business of Tech: Daily 10-Minute IT Services Insights? Send Dave Sobel a message on PodMatch, here: https://www.podmatch.com/hostdetailpreview/businessoftech Want our stuff? Cool Merch? Wear “Why Do We Care?” - Visit https://mspradio.myspreadshop.com Follow us on:LinkedIn: https://www.linkedin.com/company/28908079/YouTube: https://youtube.com/mspradio/Facebook: https://www.facebook.com/mspradionews/Instagram: https://www.instagram.com/mspradio/TikTok: https://www.tiktok.com/@businessoftechBluesky: https://bsky.app/profile/businessof.tech Hosted by Simplecast, an AdsWizz company. See pcm.adswizz.com for information about our collection and use of personal data for advertising.

Alexander Schlager, CEO of Aiceberg.ai, discusses the intersection of artificial intelligence (AI) and cybersecurity, emphasizing the importance of securing AI-powered workflows. Aiceberg employs traditional machine learning techniques to safeguard generative AI systems, providing a deterministic and explainable approach to security. This method allows organizations to understand how their AI systems operate and ensures that they can trace and audit the decisions made by these systems, which is crucial in an era where AI incidents may lead to legal challenges.The conversation highlights the need for organizations to establish robust governance frameworks as they adopt AI technologies. Schlager points out that many businesses are still grappling with basic cybersecurity measures, which complicates their ability to implement effective AI governance. He stresses that organizations must assess their existing security postures and ensure that they are prepared for the rapid deployment of agentic AI, which allows non-technical users to create and manage AI workflows independently.Schlager provides concrete examples of how Aiceberg's technology is integrated into real-world applications, such as in the banking sector, where AI workflows may involve third-party interactions. He explains that Aiceberg monitors these interactions to classify and respond to potential security threats, ensuring that organizations can demonstrate compliance and safety in the event of an incident. This proactive approach to security is essential for maintaining trust and accountability in AI systems.Finally, the discussion touches on the broader implications of AI adoption, including the potential for improved customer experiences across various industries. Schlager notes that while AI can enhance service delivery, organizations must navigate the challenges of user expectations and the maturity of their AI implementations. By focusing on customer service and experience, companies can unlock significant value from their AI investments, but they must also prioritize security and governance to mitigate risks. All our Sponsors: https://businessof.tech/sponsors/ Do you want the show on your podcast app or the written versions of the stories? Subscribe to the Business of Tech: https://www.businessof.tech/subscribe/Looking for a link from the stories? The entire script of the show, with links to articles, are posted in each story on https://www.businessof.tech/ Support the show on Patreon: https://patreon.com/mspradio/ Want to be a guest on Business of Tech: Daily 10-Minute IT Services Insights? Send Dave Sobel a message on PodMatch, here: https://www.podmatch.com/hostdetailpreview/businessoftech Want our stuff? Cool Merch? Wear “Why Do We Care?” - Visit https://mspradio.myspreadshop.com Follow us on:LinkedIn: https://www.linkedin.com/company/28908079/YouTube: https://youtube.com/mspradio/Facebook: https://www.facebook.com/mspradionews/Instagram: https://www.instagram.com/mspradio/TikTok: https://www.tiktok.com/@businessoftechBluesky: https://bsky.app/profile/businessof.tech Hosted by Simplecast, an AdsWizz company. See pcm.adswizz.com for information about our collection and use of personal data for advertising.

Managed service providers (MSPs) are experiencing significant growth driven by interest in artificial intelligence (AI), with 92% reporting an uptick in business. However, a concerning trend has emerged: only about half of these providers feel equipped to assist small and mid-sized businesses in adopting AI tools, a sharp decline from 90% the previous year. This growing readiness gap highlights the challenges MSPs face in meeting customer expectations as AI adoption accelerates. Experts emphasize the need for integrated security solutions to help navigate the complexities of AI.OpenAI's recent benchmarks reveal that a staggering 95% of enterprise AI projects fail, underscoring the difficulties companies encounter in justifying their AI investments. Despite advancements in AI models, their effectiveness remains inconsistent, particularly in handling complex, ongoing projects. The evaluation system introduced by OpenAI aims to bridge the gap between theoretical capabilities and real-world demands, indicating that while AI can perform tasks faster and cheaper than humans, it still struggles with contextual understanding and interaction.In the realm of digital content, Cloudflare has launched a feature allowing website owners to block Google's AI overview search product, addressing concerns from publishers about traffic losses due to AI-generated content. This move comes amid legal challenges faced by Google from publishers who argue that their content is being used without proper attribution. While Cloudflare's feature offers a potential solution, its effectiveness hinges on Google's compliance, raising questions about the future of content ownership in the age of AI.Regulatory pressures are also reshaping the landscape for major tech companies. Microsoft has been compelled to offer free extended security updates for Windows 10 in select European markets, responding to consumer advocacy for better support. Meanwhile, Apple has delayed the release of several features in Europe due to compliance challenges with the EU's Digital Markets Act. These developments highlight the increasing influence of regulation on technology services, prompting MSPs to prepare for client inquiries regarding disparities in service offerings across regions.Four things to know today00:00 92% of MSPs Report AI-Driven Growth, But Only Half Feel Ready to Support SMB Adoption02:50 Fast, Cheap, and Fragile: OpenAI Finds AI Struggles in Real Work While Cloudflare Challenges Google's AI Overviews06:44 EU Pressure Forces Microsoft to Extend Free Windows 10 Updates as Apple Delays Features Under DMA09:39 Innovation vs. Obligation: How Debt, Automation, and AI Metrics Are Rewriting the Managed Services PlaybookThis is the Business of Tech.    Supported by:  https://mailprotector.com/ Webinar:  https://bit.ly/msprmail All our Sponsors: https://businessof.tech/sponsors/ Do you want the show on your podcast app or the written versions of the stories? Subscribe to the Business of Tech: https://www.businessof.tech/subscribe/Looking for a link from the stories? The entire script of the show, with links to articles, are posted in each story on https://www.businessof.tech/ Support the show on Patreon: https://patreon.com/mspradio/ Want to be a guest on Business of Tech: Daily 10-Minute IT Services Insights? Send Dave Sobel a message on PodMatch, here: https://www.podmatch.com/hostdetailpreview/businessoftech Want our stuff? Cool Merch? Wear “Why Do We Care?” - Visit https://mspradio.myspreadshop.com Follow us on:LinkedIn: https://www.linkedin.com/company/28908079/YouTube: https://youtube.com/mspradio/Facebook: https://www.facebook.com/mspradionews/Instagram: https://www.instagram.com/mspradio/TikTok: https://www.tiktok.com/@businessoftechBluesky: https://bsky.app/profile/businessof.tech Hosted by Simplecast, an AdsWizz company. See pcm.adswizz.com for information about our collection and use of personal data for advertising.

Art Kleiner, co-author of "The AI Dilemma" and Principal at Kleiner Powell International, discusses the complexities of AI governance, trust, and accountability in the context of modern technology. He emphasizes the importance of being intentional about risk when deploying AI products, particularly large language models, which can inadvertently perpetuate biases and misinformation. Kleiner shares a compelling example of a Chinese AI system that failed to generate accurate images based on user requests, illustrating the inherent biases present in AI systems. He stresses the need for organizations to be aware of the human effects and unintended consequences of AI deployment.For managed service providers (MSPs) and IT leaders, Kleiner highlights the significance of compliance and oversight in the development process of AI systems. He references the EU AI Act, which mandates a "human in the loop" approach to ensure accountability and effectiveness in AI applications. This requirement encourages organizations to conduct thorough testing and evaluation of AI systems in real-world contexts, ensuring that they meet the needs of users and mitigate potential risks. Kleiner notes that small businesses, in particular, must be vigilant about the implications of AI on their operations and customer interactions.The conversation also delves into the challenges of achieving measurable ROI from AI projects, with studies indicating that a significant percentage of these initiatives fail to deliver tangible business value. Kleiner advocates for scenario planning as a tool to navigate the uncertainties of AI implementation, encouraging organizations to explore various future scenarios and their potential impacts. By understanding the different ways AI can affect productivity, business growth, and risk management, companies can better position themselves to leverage AI effectively.Finally, Kleiner urges leaders to prepare for multiple AI futures by staying informed about emerging technologies and their implications for their businesses. He emphasizes the need for organizations to build trust with their customers by using AI responsibly and transparently. By focusing on creating value and avoiding the pitfalls of "inshittification," businesses can foster stronger relationships with their clients and enhance their overall service offerings. The discussion underscores the critical role of human insight and ethical considerations in the evolving landscape of AI technology. All our Sponsors: https://businessof.tech/sponsors/ Do you want the show on your podcast app or the written versions of the stories? Subscribe to the Business of Tech: https://www.businessof.tech/subscribe/Looking for a link from the stories? The entire script of the show, with links to articles, are posted in each story on https://www.businessof.tech/ Support the show on Patreon: https://patreon.com/mspradio/ Want to be a guest on Business of Tech: Daily 10-Minute IT Services Insights? Send Dave Sobel a message on PodMatch, here: https://www.podmatch.com/hostdetailpreview/businessoftech Want our stuff? Cool Merch? Wear “Why Do We Care?” - Visit https://mspradio.myspreadshop.com Follow us on:LinkedIn: https://www.linkedin.com/company/28908079/YouTube: https://youtube.com/mspradio/Facebook: https://www.facebook.com/mspradionews/Instagram: https://www.instagram.com/mspradio/TikTok: https://www.tiktok.com/@businessoftechBluesky: https://bsky.app/profile/businessof.tech Hosted by Simplecast, an AdsWizz company. See pcm.adswizz.com for information about our collection and use of personal data for advertising.

Generative AI is significantly transforming technology jobs, particularly by automating repetitive tasks such as coding and data processing. A recent analysis by Indeed indicates that while many tech skills will evolve, less than 1% are likely to be fully replaced by AI. This shift is creating challenges for organizations, as employees struggle with the overwhelming number of AI tools available, leading to wasted hours and lost productivity. Companies are urged to streamline their operations by implementing unified platforms that can integrate AI effectively, reducing manual tasks and enhancing overall productivity.The issue of AI agent sprawl is highlighted, where organizations may manage numerous AI agents, resulting in chaos rather than transformation. Analysts are reportedly losing an average of 9.1 hours each week due to inefficient workflows, costing companies billions annually. Despite this, many executives mistakenly believe their teams are operating at peak productivity. The podcast emphasizes the need for organizations to measure productivity based on actual output and create operational visibility to unlock growth potential.Diversity in IT leadership is another pressing concern, as the representation of women in technology continues to decline. A recent report reveals that while the number of women in the ICT sector has increased, men still dominate management roles. The exit of thousands of women from tech roles each year is attributed to a lack of career progression and recognition, rather than personal responsibilities. This trend not only affects workplace culture but also has significant economic implications, with billions lost due to decreased productivity and recruitment challenges.Finally, Google is merging Android and Chrome OS to create a new operating system aimed at enhancing AI capabilities on personal computers. This development is expected to impact how IT manages devices, particularly in K-12 and small business markets. Providers are advised to prepare for this shift by developing training and support strategies for clients. The podcast concludes with a call to action for IT leaders to focus on practical solutions to modern challenges, including email security, while also addressing the critical need for diversity and inclusion within the tech industry.Four things to know today00:00 AI Isn't Killing Jobs—It's Killing Repetition. The Real Risk Is Agent Sprawl and Lost Productivity04:52 Vendors Double Down on MSP Stack: MCP Standardization, New Partnerships, and Leadership Shifts08:37 Diversity in Tech Leadership Stalls as Women Exit and DEI Programs Fade—A Capacity Crisis for Providers13:36 Google's New Unified OS: AI Promise for Users, Support Headache for ProvidersThis is the Business of Tech.    Supported by:  https://cometbackup.com/?utm_source=mspradio&utm_medium=podcast&utm_campaign=sponsorshiphttps://mailprotector.com/Webinar:   https://bit.ly/msprmail  All our Sponsors: https://businessof.tech/sponsors/ Do you want the show on your podcast app or the written versions of the stories? Subscribe to the Business of Tech: https://www.businessof.tech/subscribe/Looking for a link from the stories? The entire script of the show, with links to articles, are posted in each story on https://www.businessof.tech/ Support the show on Patreon: https://patreon.com/mspradio/ Want to be a guest on Business of Tech: Daily 10-Minute IT Services Insights? Send Dave Sobel a message on PodMatch, here: https://www.podmatch.com/hostdetailpreview/businessoftech Want our stuff? Cool Merch? Wear “Why Do We Care?” - Visit https://mspradio.myspreadshop.com Follow us on:LinkedIn: https://www.linkedin.com/company/28908079/YouTube: https://youtube.com/mspradio/Facebook: https://www.facebook.com/mspradionews/Instagram: https://www.instagram.com/mspradio/TikTok: https://www.tiktok.com/@businessoftechBluesky: https://bsky.app/profile/businessof.tech Hosted by Simplecast, an AdsWizz company. See pcm.adswizz.com for information about our collection and use of personal data for advertising.

The Defense Department's Cybersecurity Maturity Model Certification (CMMC) effort has uncovered that many contractors are unaware of export control violations, which could lead to significant legal and financial penalties. As the certification becomes mandatory, early assessments indicate common violations of the International Traffic in Arms Regulation and Export Administration Regulations. Contractors are urged to map controlled, unclassified information and review data controls to identify and mitigate these violations before audits occur. This highlights the critical need to integrate export compliance with cybersecurity measures.Meanwhile, Congress is experimenting with Microsoft's AI chatbot, CoPilot, as part of an initiative to incorporate artificial intelligence into legislative operations. This move has sparked concerns among critics regarding the potential risks of misinformation and privacy hazards associated with using experimental technology in governance. Additionally, Congress faces challenges in renewing a vital cyber threat information sharing program, which is set to expire soon, raising alarms about the implications for national cybersecurity efforts.On the cybersecurity front, artificial intelligence is increasingly being exploited by criminal hackers, leading to a new era of sophisticated attacks. Generative AI technologies are being used to craft convincing phishing scams and manipulate everyday tools to execute attacks without triggering security alerts. Recent incidents have demonstrated the effectiveness of these tactics, emphasizing the need for heightened vigilance and advanced security measures to protect against evolving threats.In the realm of technology, companies like Notion, Google, and Zoom are embedding powerful AI features into their platforms, fundamentally changing how users interact with these tools. Notion's new AI agent can autonomously perform tasks, while Google has integrated its Gemini AI into Chrome for enhanced usability and security. Zoom is set to introduce photorealistic AI avatars for meetings, showcasing the rapid adoption of AI in everyday applications. As these tools become the new baseline, IT service providers must adapt by focusing on governance, compliance, and security to ensure that their clients can safely navigate this evolving landscape. Four things to know today 00:00 Compliance Blind Spots, Political Delays, and AI Experiments Show Why IT Providers Must Be the Steady Hand05:02 Generative AI Fuels Phishing and Supply Chain Attacks While SonicWall and WatchGuard Struggle With Flaws09:08 Notion, Google, and Zoom Push AI Deeper Into Everyday Tools12:43 Ingram Micro Credits Xvantage for Ransomware Recovery, but MSPs Should Focus on Client Continuity This is the Business of Tech.  Supported by:  scalepad  Webinar:   https://bit.ly/msprmail All our Sponsors: https://businessof.tech/sponsors/ Do you want the show on your podcast app or the written versions of the stories? Subscribe to the Business of Tech: https://www.businessof.tech/subscribe/Looking for a link from the stories? The entire script of the show, with links to articles, are posted in each story on https://www.businessof.tech/ Support the show on Patreon: https://patreon.com/mspradio/ Want to be a guest on Business of Tech: Daily 10-Minute IT Services Insights? Send Dave Sobel a message on PodMatch, here: https://www.podmatch.com/hostdetailpreview/businessoftech Want our stuff? Cool Merch? Wear “Why Do We Care?” - Visit https://mspradio.myspreadshop.com Follow us on:LinkedIn: https://www.linkedin.com/company/28908079/YouTube: https://youtube.com/mspradio/Facebook: https://www.facebook.com/mspradionews/Instagram: https://www.instagram.com/mspradio/TikTok: https://www.tiktok.com/@businessoftechBluesky: https://bsky.app/profile/businessof.tech Hosted by Simplecast, an AdsWizz company. See pcm.adswizz.com for information about our collection and use of personal data for advertising.

Americans are increasingly anxious about artificial intelligence (AI), with a recent Pew Research Center study revealing that 50% of participants express more concern than excitement regarding AI's growing presence in daily life. This marks a significant rise from 37% in 2021. The study highlights skepticism about AI's impact on creativity and interpersonal relationships, with many believing it could worsen creative thinking and negatively affect human connections. This growing anxiety underscores the need for better understanding and control over AI applications in society.In the workplace, AI is reshaping learning and development, with organizations in the US, UK, Australia, and New Zealand increasing their budgets for these initiatives. A report from LearnUpon indicates that 43% of learning leaders fear AI could fully replace their roles, while 40% anticipate partial changes due to AI disruption. Despite the investment in learning and development, there is a palpable tension as employees question whether AI will ultimately assist or displace them, raising concerns about trust and stability in the workplace.Meanwhile, NVIDIA's recent $100 billion investment in OpenAI has sparked discussions about the stability of the AI market. This investment is part of a larger trend where major tech firms are projected to invest over $325 billion in AI data centers globally. However, the cycle of capital and chips raises questions about real demand versus artificial demand, as the investment appears to be a circular loop that could lead to instability if market conditions change. Providers are advised to focus on building value through governance and integration rather than relying solely on AI infrastructure costs.A wave of new vendor launches, including Acronis, Hexnode, and CloudRadial, highlights a trend towards automation and consolidation in the industry. These companies are introducing solutions that integrate security, backup, and management functions to simplify operations for managed service providers (MSPs). As MSPs begin to take on vendor roles themselves, the emphasis is on creating efficiencies and better governance to enhance client relationships. The overarching theme is that while technology evolves, the real differentiation for providers will come from how they implement and govern these tools to deliver meaningful business outcomes. Three things to know today00:00 Pew Finds Americans More Worried Than Excited About AI as Workplace and Research Risks Mount05:10 Nvidia's $100B Bet on OpenAI Fuels Data Center Boom—But Risks a Circular Spending Loop07:52 Vendors Race to Simplify MSP Stack With Security, AI, and Automation—While Netrio Proves Providers Can Be Builders Too This is the Business of Tech.   Supported by:  https://cometbackup.com/?utm_source=mspradio&utm_medium=podcast&utm_campaign=sponsorshiphttps://mailprotector.com/ Webinar:   https://bit.ly/msprmail All our Sponsors: https://businessof.tech/sponsors/ Do you want the show on your podcast app or the written versions of the stories? Subscribe to the Business of Tech: https://www.businessof.tech/subscribe/Looking for a link from the stories? The entire script of the show, with links to articles, are posted in each story on https://www.businessof.tech/ Support the show on Patreon: https://patreon.com/mspradio/ Want to be a guest on Business of Tech: Daily 10-Minute IT Services Insights? Send Dave Sobel a message on PodMatch, here: https://www.podmatch.com/hostdetailpreview/businessoftech Want our stuff? Cool Merch? Wear “Why Do We Care?” - Visit https://mspradio.myspreadshop.com Follow us on:LinkedIn: https://www.linkedin.com/company/28908079/YouTube: https://youtube.com/mspradio/Facebook: https://www.facebook.com/mspradionews/Instagram: https://www.instagram.com/mspradio/TikTok: https://www.tiktok.com/@businessoftechBluesky: https://bsky.app/profile/businessof.tech Hosted by Simplecast, an AdsWizz company. See pcm.adswizz.com for information about our collection and use of personal data for advertising.

NVIDIA has made a significant move by investing $5 billion in Intel, acquiring approximately 4% ownership of the company. This partnership aims to co-develop custom data center and personal computer products, integrating NVIDIA's advanced AI and accelerated computing capabilities with Intel's leading CPU technologies. The collaboration is expected to create custom x86 chips that will be manufactured by Intel to NVIDIA's specifications, potentially generating an annual opportunity worth between $25 and $50 billion once the products are launched. Despite this partnership, Intel will continue to develop its own ARC graphic processing units, although the messaging around this dual focus may create confusion.The Federal Reserve has cut interest rates by a quarter point, a decision framed as a risk management measure amid a cooling labor market. While job gains have slowed and inflation remains high, the Fed's cautious approach indicates limited support for deeper cuts. In the tech sector, the U.S. personal computer industry is facing challenges, with shipments declining due to inventory issues and consumer reluctance to upgrade their devices, even with the impending end of support for Windows 10. This stagnation in consumer sales reflects broader economic uncertainties as buyers prioritize essential expenses.Meanwhile, global spending on artificial intelligence is projected to reach nearly $1.5 trillion this year, driven by a boom in cloud data center construction and rising enterprise investments in AI technologies. Despite the enthusiasm surrounding AI, a recent McKinsey report reveals that 80% of companies utilizing generative AI have not seen tangible impacts on their earnings, highlighting a disconnect between the hype and real-world performance. As stock prices rise, recession signals are emerging, suggesting a need for caution in an increasingly concentrated market.Managed service providers (MSPs) are strategically positioned within a $608 billion industry, despite a decline in optimism regarding significant revenue growth. The demand for managed IT services continues to rise, with many providers diversifying their revenue streams by offering consulting and design services. Additionally, IT outages are costing businesses an estimated $76 million annually, emphasizing the importance of uptime over tools. As the landscape evolves, providers must focus on delivering outcomes rather than competing solely on software, ensuring that customers receive the value they need to maintain business continuity. Three things to know today00:00 Fed Rate Cut, PC Sales Slump, and $1.5T AI Hype: Why IT Providers Must Focus on Security and Outcomes04:36 $76M Downtime Losses, Cooling MSP Optimism, 7x Security Multipliers, and Mainframe ROI—All Point to Services as the Real Value08:16 Nvidia Buys 4% of Intel in $5B Deal, Betting on Custom AI Chips for Servers and PCs This is the Business of Tech.    Supported by:  https://scalepad.com/dave/Webinar:   https://bit.ly/msprmail All our Sponsors: https://businessof.tech/sponsors/ Do you want the show on your podcast app or the written versions of the stories? Subscribe to the Business of Tech: https://www.businessof.tech/subscribe/Looking for a link from the stories? The entire script of the show, with links to articles, are posted in each story on https://www.businessof.tech/ Support the show on Patreon: https://patreon.com/mspradio/ Want to be a guest on Business of Tech: Daily 10-Minute IT Services Insights? Send Dave Sobel a message on PodMatch, here: https://www.podmatch.com/hostdetailpreview/businessoftech Want our stuff? Cool Merch? Wear “Why Do We Care?” - Visit https://mspradio.myspreadshop.com Follow us on:LinkedIn: https://www.linkedin.com/company/28908079/YouTube: https://youtube.com/mspradio/Facebook: https://www.facebook.com/mspradionews/Instagram: https://www.instagram.com/mspradio/TikTok: https://www.tiktok.com/@businessoftechBluesky: https://bsky.app/profile/businessof.tech Hosted by Simplecast, an AdsWizz company. See pcm.adswizz.com for information about our collection and use of personal data for advertising.

Angelo Ponzi, a seasoned marketing strategist with over 30 years of experience, discusses the challenges of brand differentiation in the crowded managed services provider (MSP) and IT services market. He emphasizes the importance of moving away from company-centric messaging, which often leads to a homogenized market where all providers sound the same. Instead, he advocates for a customer-centric approach that focuses on solving specific problems and addressing pain points, thereby creating a unique value proposition that resonates with potential clients.Ponzi introduces the VRIO framework, which assesses whether a service is valuable, rare, and difficult to imitate. This framework helps businesses identify their competitive advantages and differentiate themselves from competitors. He also highlights the significance of understanding the market and conducting research, which can be as simple as interviewing current customers to gain insights into how they perceive the brand and its offerings. This understanding is crucial for crafting relevant messaging that can effectively attract new clients.The conversation also touches on the balance between long-term brand building and immediate revenue generation. Ponzi suggests that companies should have a clear and consistent message that aligns with their brand pillars. This consistency helps build a strong reputation over time, which is essential for attracting and retaining customers. He stresses the need for businesses to understand their identity and the problems they solve, rather than just focusing on their history or longevity in the market.Finally, Ponzi addresses the impact of artificial intelligence (AI) on marketing strategies. He notes that while AI is transforming the industry, many businesses are still grappling with how to effectively utilize it. The conversation concludes with Ponzi encouraging companies to leverage their unique strengths and relationships to stand out in a competitive landscape, ultimately driving growth and success. All our Sponsors: https://businessof.tech/sponsors/ Do you want the show on your podcast app or the written versions of the stories? Subscribe to the Business of Tech: https://www.businessof.tech/subscribe/Looking for a link from the stories? The entire script of the show, with links to articles, are posted in each story on https://www.businessof.tech/ Support the show on Patreon: https://patreon.com/mspradio/ Want to be a guest on Business of Tech: Daily 10-Minute IT Services Insights? Send Dave Sobel a message on PodMatch, here: https://www.podmatch.com/hostdetailpreview/businessoftech Want our stuff? Cool Merch? Wear “Why Do We Care?” - Visit https://mspradio.myspreadshop.com Follow us on:LinkedIn: https://www.linkedin.com/company/28908079/YouTube: https://youtube.com/mspradio/Facebook: https://www.facebook.com/mspradionews/Instagram: https://www.instagram.com/mspradio/TikTok: https://www.tiktok.com/@businessoftechBluesky: https://bsky.app/profile/businessof.tech Hosted by Simplecast, an AdsWizz company. See pcm.adswizz.com for information about our collection and use of personal data for advertising.

AI-driven transformation is underway as over half of tech and media firms plan major organizational restructures to integrate artificial intelligence, despite the high failure rate of early pilot programs. Salesforce expects AI to handle 50% of service calls by 2027, while Business Insider is quietly using AI to draft articles. Fiverr's "AI-first" restructuring has led to a 30% workforce reduction, sparking backlash. The rapid shift reveals both opportunity and risk, especially as poor implementation and loss of customer trust threaten to undermine the promised benefits.Meanwhile, Microsoft is under fire from Consumer Reports for ending support for Windows 10 on October 14th, leaving hundreds of millions of devices potentially vulnerable. Many cannot upgrade to Windows 11 due to hardware limitations, and Microsoft's proposed $30/year fee for extended updates has drawn criticism. Managed service providers (MSPs) now face an uphill battle to communicate this change, mitigate client dissatisfaction, and navigate rushed hardware refreshes.Cyber resilience and AI are converging across the IT stack. N-able, Syncro, and LogicMonitor are rolling out AI-driven features such as anomaly detection, M365/Entra ID backups, and cross-cloud observability. Microsoft Research's open-source MCP Interviewer tool could open new service opportunities for validating AI infrastructure. The trend signals a shift from AI as novelty to AI as operational backbone — but with much of it still experimental, caution is advised.Finally, big questions loom: Is poor leadership being misdiagnosed as a failure of remote work? Can Oracle's $317B backlog — heavily reliant on OpenAI — actually deliver value? And if generative AI increases global GDP by trillions, who truly benefits — vendors or end users? At the grassroots level, students turning to AI for homework raises concerns about eroding critical thinking and long-term workforce preparedness. Four things to know today 00:00 Over Half of Tech Firms Plan Major Restructures to Embrace AI, Despite High Failure Rates05:28 Consumer Reports Urges Microsoft to Extend Windows 10 Support Beyond October 14 Deadline07:03 From Backup Anomaly Detection to MCP Reliability: AI and Cyber Resilience Are Converging in the IT Stack09:48 From Oracle's AI Gamble to Students Skipping Homework: Who Really Captures the Value of Technology? This is the Business of Tech.    Supported by: https://timezest.com/mspradio/https://cometbackup.com/?utm_source=mspradio&utm_medium=podcast&utm_campaign=sponsorship Webinar:   https://bit.ly/msprmail All our Sponsors: https://businessof.tech/sponsors/ Do you want the show on your podcast app or the written versions of the stories? Subscribe to the Business of Tech: https://www.businessof.tech/subscribe/Looking for a link from the stories? The entire script of the show, with links to articles, are posted in each story on https://www.businessof.tech/ Support the show on Patreon: https://patreon.com/mspradio/ Want to be a guest on Business of Tech: Daily 10-Minute IT Services Insights? Send Dave Sobel a message on PodMatch, here: https://www.podmatch.com/hostdetailpreview/businessoftech Want our stuff? Cool Merch? Wear “Why Do We Care?” - Visit https://mspradio.myspreadshop.com Follow us on:LinkedIn: https://www.linkedin.com/company/28908079/YouTube: https://youtube.com/mspradio/Facebook: https://www.facebook.com/mspradionews/Instagram: https://www.instagram.com/mspradio/TikTok: https://www.tiktok.com/@businessoftechBluesky: https://bsky.app/profile/businessof.tech Hosted by Simplecast, an AdsWizz company. See pcm.adswizz.com for information about our collection and use of personal data for advertising.

Travis Springer, president of Sagiss, a managed services provider based in Dallas, shares insights into his leadership journey and the unique approach his company takes in the IT services industry. Since taking over just before the COVID-19 pandemic, Travis has led a team of over 20 professionals, helping clients navigate significant challenges, including the rapid transition to remote work and compliance issues. Sagiss has built a reputation for its high-touch, in-person support, which sets it apart from many competitors that lean heavily on remote and automated services.Travis discusses the importance of maintaining strong client relationships through face-to-face interactions, which he believes foster deeper conversations about business needs and strategic outcomes. By proactively visiting clients, even when there are no open tickets, Sagiss has been able to build trust and uncover hidden issues that clients may not have reported. This approach has proven beneficial for client retention and referrals, ultimately contributing to the company's growth.The conversation also delves into the evolving landscape of client needs, particularly around security and technology adoption. Travis highlights the increasing interest in AI and cloud solutions, as well as the necessity for businesses to develop comprehensive incident response and business continuity plans. He emphasizes the importance of understanding clients' specific needs and providing tailored solutions, rather than simply offering generic services.Reflecting on his leadership experience during the pandemic, Travis shares a key lesson: the role of a leader is primarily about managing people and fostering a positive company culture, rather than just focusing on operations and technical tasks. He has learned to prioritize one-on-one interactions with team members, which has led to improved morale and productivity. This shift in focus has not only helped Sagiss navigate the challenges of the past few years but has also positioned the company for future success. All our Sponsors: https://businessof.tech/sponsors/ Do you want the show on your podcast app or the written versions of the stories? Subscribe to the Business of Tech: https://www.businessof.tech/subscribe/Looking for a link from the stories? The entire script of the show, with links to articles, are posted in each story on https://www.businessof.tech/ Support the show on Patreon: https://patreon.com/mspradio/ Want to be a guest on Business of Tech: Daily 10-Minute IT Services Insights? Send Dave Sobel a message on PodMatch, here: https://www.podmatch.com/hostdetailpreview/businessoftech Want our stuff? Cool Merch? Wear “Why Do We Care?” - Visit https://mspradio.myspreadshop.com Follow us on:LinkedIn: https://www.linkedin.com/company/28908079/YouTube: https://youtube.com/mspradio/Facebook: https://www.facebook.com/mspradionews/Instagram: https://www.instagram.com/mspradio/TikTok: https://www.tiktok.com/@businessoftechBluesky: https://bsky.app/profile/businessof.tech Hosted by Simplecast, an AdsWizz company. See pcm.adswizz.com for information about our collection and use of personal data for advertising.

OpenAI has launched a beta version of Developer Mode for ChatGPT, which allows developers to utilize full read and write support for model context protocol tools. This new feature promises to enhance automation capabilities, enabling developers to create connectors for various applications, such as updating JIRA tickets or triggering workflows in services like Zapier. However, the introduction of this feature raises significant security concerns, particularly regarding the potential for prompt injections and the risk of malicious users exploiting these capabilities to access sensitive information. As the industry rapidly adopts this model context protocol, the need for secure configurations becomes increasingly urgent to prevent data breaches.In addition to Developer Mode, OpenAI has released GPT-5 Codecs, a large-language model optimized for coding tasks. This new model has reportedly led to a tenfold increase in usage among developers within a month, largely due to its integration with GitHub for dynamic code reviews. The Codex model has been trained on real-world coding tasks, making it a powerful tool for software engineers. Developers are already recognizing its potential to identify complex bugs that other tools may miss, which could lead to higher quality code and faster delivery cycles.Microsoft is also making strides in the AI space by introducing free co-pilot chat features in its Office applications for all Microsoft 365 Business users. This update includes a co-pilot chat sidebar in key applications like Word, Excel, and Outlook, allowing users to draft documents and analyze spreadsheets without needing an additional co-pilot license. While the premium version offers enhanced capabilities, the free features change the baseline for AI accessibility, putting powerful tools in the hands of every employee and raising concerns about shadow IT.On the cybersecurity front, the U.S. government has redirected crucial funding originally allocated to combat threats from Huawei towards tax cuts for wealthy individuals and corporations. This shift has left national security at risk, as projects aimed at enhancing U.S. cybersecurity and infrastructure suffer from a lack of follow-through. Meanwhile, the Department of Defense is set to implement its Cybersecurity Maturity Model certification requirements, which will be mandatory for defense contractors. As scammers increasingly target small businesses with fake reviews, the need for effective cybersecurity measures and compliance becomes more pressing for service providers.Four things to know today 00:00 AI Becomes Default: OpenAI Expands Workflows, Microsoft Democratizes Copilot, and Licensing Chaos Grows07:19 Huawei Money Gone, CMMC Is Here, and Your Reviews Are Under Attack10:04 Devicie, Zensai, and Apple Redefine Value: Automation, Adoption, and Repair Access12:57 Twice the Reach, No More Cash: Broadband Program's Success Meets a Dead EndThis is the Business of Tech.     Supported by: https://scalepad.com/dave/Webinar:   https://bit.ly/msprmail  All our Sponsors: https://businessof.tech/sponsors/ Do you want the show on your podcast app or the written versions of the stories? Subscribe to the Business of Tech: https://www.businessof.tech/subscribe/Looking for a link from the stories? The entire script of the show, with links to articles, are posted in each story on https://www.businessof.tech/ Support the show on Patreon: https://patreon.com/mspradio/ Want to be a guest on Business of Tech: Daily 10-Minute IT Services Insights? Send Dave Sobel a message on PodMatch, here: https://www.podmatch.com/hostdetailpreview/businessoftech Want our stuff? Cool Merch? Wear “Why Do We Care?” - Visit https://mspradio.myspreadshop.com Follow us on:LinkedIn: https://www.linkedin.com/company/28908079/YouTube: https://youtube.com/mspradio/Facebook: https://www.facebook.com/mspradionews/Instagram: https://www.instagram.com/mspradio/TikTok: https://www.tiktok.com/@businessoftechBluesky: https://bsky.app/profile/businessof.tech Hosted by Simplecast, an AdsWizz company. See pcm.adswizz.com for information about our collection and use of personal data for advertising.

Microsoft has announced a new policy requiring employees to return to the office three days a week, citing internal data that suggests in-person collaboration enhances employee engagement and productivity. However, this move comes amidst a growing trend where remote-first companies are experiencing faster growth rates. A report indicates that firms allowing remote work are growing 1.7 times faster than those enforcing full-time office attendance. This disparity highlights a potential conflict between large corporations' desire for control and culture and the preferences of employees who increasingly favor flexible work arrangements.In the realm of artificial intelligence, a new model developed by the University of Artificial Intelligence was jailbroken just two days after its launch, raising concerns about the trustworthiness of AI in enterprise settings. The incident underscores the need for companies to address issues related to data privacy and contract alignment, as enterprises are wary of how their data is utilized. Experts emphasize that businesses should focus on building trust with their clients regarding AI deployment, rather than simply adopting the latest technologies without understanding their implications.The Pentagon is facing similar challenges with AI integration in military operations, where a lack of trust in AI outputs could lead to significant risks. A report highlights the necessity for a transparent approach to AI in defense, advocating for a unified strategy to ensure the effective deployment of trustworthy AI agents. The findings suggest that both military and business sectors must prioritize trust and transparency to avoid the pitfalls associated with AI reliance.Huntress found itself in the spotlight after an attacker inadvertently installed its security tool, allowing the company to monitor the hacker's activities for three months. This incident provided valuable insights into modern cybercrime techniques but also sparked ethical debates about the responsibilities of cybersecurity firms. The situation illustrates the importance of knowledge sharing within the cybersecurity community, as vendors should not only provide software solutions but also contribute to the collective understanding of emerging threats. Four things to know today 00:00 Microsoft Pushes Office Mandate, But Research Shows Remote Firms Growing Faster04:12 K2 Think Jailbreak and Gartner Warning Underscore AI's Readiness Gap for Enterprise Trust06:24 From Pentagon to Boardroom: AI's Biggest Challenge Is Trust, Not Technology08:44 Huntress's Accidental Hacker Surveillance Reveals AI-Driven Threats and Ignites Ethics Debate This is the Business of Tech.    Supported by:  https://getnerdio.com/ Webinar:   https://bit.ly/msprmail All our Sponsors: https://businessof.tech/sponsors/ Do you want the show on your podcast app or the written versions of the stories? Subscribe to the Business of Tech: https://www.businessof.tech/subscribe/Looking for a link from the stories? The entire script of the show, with links to articles, are posted in each story on https://www.businessof.tech/ Support the show on Patreon: https://patreon.com/mspradio/ Want to be a guest on Business of Tech: Daily 10-Minute IT Services Insights? Send Dave Sobel a message on PodMatch, here: https://www.podmatch.com/hostdetailpreview/businessoftech Want our stuff? Cool Merch? Wear “Why Do We Care?” - Visit https://mspradio.myspreadshop.com Follow us on:LinkedIn: https://www.linkedin.com/company/28908079/YouTube: https://youtube.com/mspradio/Facebook: https://www.facebook.com/mspradionews/Instagram: https://www.instagram.com/mspradio/TikTok: https://www.tiktok.com/@businessoftechBluesky: https://bsky.app/profile/businessof.tech Hosted by Simplecast, an AdsWizz company. See pcm.adswizz.com for information about our collection and use of personal data for advertising.

Small businesses and managed service providers (MSPs) are currently facing a significant labor squeeze, with many unfilled job openings despite a backdrop of economic growth. According to recent reports, a notable percentage of small business owners are struggling to find qualified candidates, particularly in sectors like construction and manufacturing. The IT job market is also experiencing a downturn, with a rising unemployment rate among IT professionals, highlighting the challenges in finding the right talent for emerging technologies such as AI and blockchain. This situation is forcing businesses to rethink their talent strategies and consider automation and advisory services as solutions to labor shortages.Venture capital is increasingly flowing into AI-driven startups, particularly those targeting the managed service provider sector. A significant portion of venture capital investment is now directed towards AI, with companies like Titan aiming to roll up MSPs and enhance their operations through automation and AI technologies. This trend indicates a shift in the business landscape, where traditional service models may be disrupted by new entrants leveraging AI to improve efficiency and reduce costs. The potential for these companies to scale rapidly raises concerns for existing service providers, who may find themselves competing against automated solutions.The integration of AI in the workplace is accelerating, with a growing number of employees utilizing AI tools for various professional tasks. However, a recent study reveals that a staggering 95% of corporate AI projects fail to deliver significant revenue increases, often leading to data breaches and other complications. This disconnect between enthusiasm for AI and its practical implementation presents an opportunity for service providers to step in and guide clients through the complexities of AI integration. By offering strategic advice and support, providers can help businesses turn AI from a mere novelty into a valuable asset that addresses workforce challenges.The consulting industry is also undergoing a transformation, with a decline in job postings and a shift towards specialized expertise. As AI consultants emerge, traditional consulting firms are feeling the pressure, particularly in entry-level positions. This trend mirrors past experiences where new consultants capitalized on emerging technologies, potentially undermining established providers. To remain competitive, managed service providers must adapt by developing their own AI capabilities or partnering with other vendors. By doing so, they can maintain their relevance and ensure they are not sidelined by new entrants promising quick solutions without the necessary technical depth.Four things to know today 00:00 From Construction to Code: Job Market Turbulence Highlights SMB Strain and MSP Talent Gap04:44 VC Bets Show MSPs Are Prime Target for AI Disruption and Consolidation06:58 Shadow IT Goes Mainstream: Employees Embrace AI While Corporate Projects Flounder10:24 Consulting in Crisis: AI Cuts Entry Roles While New “AI Consultants” Chase Clients Directly This is the Business of Tech.     Supported by:  https://scalepad.com/dave/, https://cometbackup.com/?utm_source=mspradio&utm_medium=podcast&utm_campaign=sponsorship  Webinar:   https://bit.ly/msprmail All our Sponsors: https://businessof.tech/sponsors/ Do you want the show on your podcast app or the written versions of the stories? Subscribe to the Business of Tech: https://www.businessof.tech/subscribe/Looking for a link from the stories? The entire script of the show, with links to articles, are posted in each story on https://www.businessof.tech/ Support the show on Patreon: https://patreon.com/mspradio/ Want to be a guest on Business of Tech: Daily 10-Minute IT Services Insights? Send Dave Sobel a message on PodMatch, here: https://www.podmatch.com/hostdetailpreview/businessoftech Want our stuff? Cool Merch? Wear “Why Do We Care?” - Visit https://mspradio.myspreadshop.com Follow us on:LinkedIn: https://www.linkedin.com/company/28908079/YouTube: https://youtube.com/mspradio/Facebook: https://www.facebook.com/mspradionews/Instagram: https://www.instagram.com/mspradio/TikTok: https://www.tiktok.com/@businessoftechBluesky: https://bsky.app/profile/businessof.tech Hosted by Simplecast, an AdsWizz company. See pcm.adswizz.com for information about our collection and use of personal data for advertising.

Tara May, CEO of Aspiritech, leads a pioneering tech company where over 90% of the workforce consists of autistic adults. This unique model not only serves a social mission of providing meaningful employment but also leverages the strengths of neurodiverse individuals as a strategic advantage in the tech services sector. Aspiritech specializes in quality assurance, accessibility testing, and cybersecurity, benefiting from the exceptional attention to detail and pattern recognition skills of its team members. The company has successfully scaled to over 100 employees and generates approximately $7 million in annual revenue, with a diverse client base that includes notable companies like Bose.Throughout the conversation, Tara emphasizes the importance of cultural buy-in and operational practices that foster inclusion while maintaining high performance. She shares insights from her extensive experience in digital transformation, highlighting that successful change in organizations is rooted in investing in team members and creating an environment where they feel safe to innovate. This approach has led to impressive retention rates, with AspiraTech boasting a 99% year-over-year retention, largely attributed to its culture of kindness and collaboration.Tara addresses common concerns about hiring neurodiverse employees, dispelling myths that accommodations are costly or reduce productivity. She explains that many adjustments made for neurodivergent team members often benefit the entire workforce, promoting a universal design that enhances overall workplace experience. By fostering an inclusive environment, Aspiritech not only supports its employees but also drives customer satisfaction and business success.Looking ahead, Tara is keenly aware of the evolving landscape of technology, particularly the impact of AI and cybersecurity. She advocates for a pragmatic approach to new technologies, emphasizing the need for organizations to adapt and evolve rather than fear change. Tara's commitment to neurodiversity, mental health, and kindness in the workplace positions Aspiritech as a leader in the movement for inclusive employment, demonstrating that a caring culture can coexist with high performance and innovation. All our Sponsors: https://businessof.tech/sponsors/ Do you want the show on your podcast app or the written versions of the stories? Subscribe to the Business of Tech: https://www.businessof.tech/subscribe/Looking for a link from the stories? The entire script of the show, with links to articles, are posted in each story on https://www.businessof.tech/ Support the show on Patreon: https://patreon.com/mspradio/ Want to be a guest on Business of Tech: Daily 10-Minute IT Services Insights? Send Dave Sobel a message on PodMatch, here: https://www.podmatch.com/hostdetailpreview/businessoftech Want our stuff? Cool Merch? Wear “Why Do We Care?” - Visit https://mspradio.myspreadshop.com Follow us on:LinkedIn: https://www.linkedin.com/company/28908079/YouTube: https://youtube.com/mspradio/Facebook: https://www.facebook.com/mspradionews/Instagram: https://www.instagram.com/mspradio/TikTok: https://www.tiktok.com/@businessoftechBluesky: https://bsky.app/profile/businessof.tech

Howard M. Cohen, a seasoned expert in the managed service provider (MSP) sector, discusses the current state and future potential of artificial intelligence (AI) for MSPs. He highlights that while adoption rates are still low, with only a small percentage of partners and customers fully integrating agentic AI, there is a growing interest in practical applications. Cohen emphasizes the importance of moving beyond the hype surrounding AI and focusing on real business tools that can enhance service delivery and client engagement.Cohen shares insights from his experience, recalling the excitement of the early days of personal computing and drawing parallels to the current AI landscape. He notes that many discussions around AI lack depth and practical understanding, urging MSPs to seek out genuine applications that can drive results. He cites examples of MSPs successfully implementing AI solutions, such as virtual agents in boutique hotels, which demonstrate the tangible benefits of AI when applied thoughtfully.The conversation also touches on the challenges MSPs face, including data security, compliance concerns, and the need for internal expertise. Cohen argues that MSPs should take a consultative approach, engaging with clients to understand their business processes and identifying opportunities for AI integration. He believes that by focusing on practical applications and outcomes, MSPs can better position themselves in a rapidly evolving market.Finally, the discussion shifts to the implications of changing pricing models in the AI space. With a significant increase in per-use pricing among AI software companies, Cohen warns that MSPs must be prepared to define what constitutes usage and outcomes clearly. He stresses the need for MSPs to adapt their service offerings and pricing strategies to align with these new models, ensuring they can deliver value while navigating the complexities of AI integration. All our Sponsors: https://businessof.tech/sponsors/ Do you want the show on your podcast app or the written versions of the stories? Subscribe to the Business of Tech: https://www.businessof.tech/subscribe/Looking for a link from the stories? The entire script of the show, with links to articles, are posted in each story on https://www.businessof.tech/ Support the show on Patreon: https://patreon.com/mspradio/ Want to be a guest on Business of Tech: Daily 10-Minute IT Services Insights? Send Dave Sobel a message on PodMatch, here: https://www.podmatch.com/hostdetailpreview/businessoftech Want our stuff? Cool Merch? Wear “Why Do We Care?” - Visit https://mspradio.myspreadshop.com Follow us on:LinkedIn: https://www.linkedin.com/company/28908079/YouTube: https://youtube.com/mspradio/Facebook: https://www.facebook.com/mspradionews/Instagram: https://www.instagram.com/mspradio/TikTok: https://www.tiktok.com/@businessoftechBluesky: https://bsky.app/profile/businessof.tech

OpenAI has announced a major restructuring plan that involves transferring an equity stake valued at over $100 billion to the non-profit organization overseeing it. This move is part of a broader strategy to transition OpenAI from a non-profit to a public benefit corporation, alongside a tentative agreement to resolve financial issues with Microsoft, which has invested over $13 billion in OpenAI since 2019. The revised agreement includes a clause that limits Microsoft's access to OpenAI's most advanced technologies if they achieve artificial general intelligence. This transition is under scrutiny from regulators and raises concerns about OpenAI's commitment to its foundational mission of ensuring that artificial intelligence benefits humanity.The financial implications of OpenAI's restructuring are significant, particularly with an estimated computing cost problem of $350 billion. This staggering figure not only highlights the challenges OpenAI faces but also sets a concerning precedent for other tech companies relying on cloud computing resources. If OpenAI struggles with these costs, it could lead to higher API pricing, throttled access, or abrupt contract changes that would affect managed service providers (MSPs) and their clients. The podcast emphasizes the importance of diversifying partnerships and negotiating flexibility in contracts to mitigate potential volatility in the AI landscape.In other industry news, N-able has launched CATMIP, an initiative aimed at standardizing AI terminology in cybersecurity and IT management. This effort seeks to address the inconsistencies in terminology across different tech vendors, which can lead to errors and ambiguities in AI command interpretation. Meanwhile, Kaseya has reshaped its leadership with a community-first message, appointing new executives to enhance its AI-first platform, Kaseya 365. These changes reflect a shift towards a more community-centric approach for managed service providers, although the podcast cautions that new titles alone won't resolve existing integration challenges.Adobe and Coro are also making strides in integrating AI into their offerings. Adobe has introduced AI agents in its Experience Cloud, with over 70% of customers already adopting the new tools designed to enhance customer experience processes. Coro has released a new version of its cybersecurity platform tailored for small and mid-sized businesses, leveraging AI to simplify security processes. The podcast concludes with a discussion on the decline of the open web, the normalization of AI as a technology, and the importance of aligning AI adoption with business goals rather than treating it as a standalone strategy. Four things to know today 00:00 OpenAI Restructures With $100B Equity Transfer While Confronting $350B Compute Crisis03:58 N-able Pushes AI Standardization While Kaseya Reshapes Leadership for AI-First Future06:51 Adobe Targets Customer Experience as Coro Brings Enterprise Security to SMBs08:28 Open Web Fades, AI Normalizes, and Strategy Matters More Than Ever  This is the Business of Tech.     Supported by:  https://scalepad.com/dave/ All our Sponsors: https://businessof.tech/sponsors/ Do you want the show on your podcast app or the written versions of the stories? Subscribe to the Business of Tech: https://www.businessof.tech/subscribe/Looking for a link from the stories? The entire script of the show, with links to articles, are posted in each story on https://www.businessof.tech/ Support the show on Patreon: https://patreon.com/mspradio/ Want to be a guest on Business of Tech: Daily 10-Minute IT Services Insights? Send Dave Sobel a message on PodMatch, here: https://www.podmatch.com/hostdetailpreview/businessoftech Want our stuff? Cool Merch? Wear “Why Do We Care?” - Visit https://mspradio.myspreadshop.com Follow us on:LinkedIn: https://www.linkedin.com/company/28908079/YouTube: https://youtube.com/mspradio/Facebook: https://www.facebook.com/mspradionews/Instagram: https://www.instagram.com/mspradio/TikTok: https://www.tiktok.com/@businessoftechBluesky: https://bsky.app/profile/businessof.tech

Oracle Corporation has made headlines with its ambitious revenue projections, forecasting a dramatic increase in its cloud server rental business from $10 billion in fiscal 2025 to $144 billion by fiscal 2030. This growth is attributed to a significant rise in new contracts and a 359% boost in business backlog, largely driven by partnerships with major AI firms. Despite the excitement surrounding these projections, analysts express caution, noting that a decline in enterprise AI adoption could jeopardize Oracle's plans. Recent data indicates that 95% of companies using AI have not seen new revenue, raising questions about the sustainability of Oracle's aggressive investment strategy.The latest statistics reveal a concerning trend in AI adoption among large companies, which has dropped from nearly 14% to under 12% in just a few months. This decline is particularly alarming for investors who have heavily invested in AI technologies, expecting them to revolutionize business operations. As companies reassess their reliance on AI, many are beginning to rehire human workers, acknowledging that the technology has not met earlier expectations. Gartner predicts that while AI will play a significant role in IT departments by 2030, the current reality shows that a substantial percentage of CIOs are not seeing a return on their AI investments.In response to the evolving landscape, a new licensing standard called Really Simple Licensing (RSL) has emerged, aimed at empowering web publishers to set terms for how AI developers can use their content. Supported by major brands like Reddit and Yahoo, this initiative seeks to create a fair compensation model for content creators amidst ongoing legal disputes over AI data scraping. The RSL standard allows site owners to charge fees for AI bots crawling their sites, potentially providing smaller publishers with a mechanism to assert the value of their work.Meanwhile, Microsoft is taking steps to diversify its AI offerings by partnering with Anthropic to enhance its Office 365 applications, reducing its reliance on OpenAI. This move comes as Microsoft bundles its sales, service, and finance copilots into a single offering at a lower price, making AI tools more accessible to users. Additionally, the launch of MSPcentric aims to address the challenges of professional services automation integrations within the IT channel, highlighting the ongoing need for efficiency in the industry. As these developments unfold, the focus remains on how AI can deliver tangible benefits to businesses and the workforce. Four things to know today 00:00 Oracle bets $35B on AI future, projecting $144B cloud growth despite slowing adoption signals03:39 AI adoption stalls as ROI disappoints, but workforce shifts show upskilling is key06:41 From content licensing to trillion-parameter models: RSL, Microsoft's Anthropic pivot, and global AI competition reshape the field11:27 Microsoft Bundles Copilots, Colin Knox Launches MSPCentric: Two Moves Aiming to Simplify Tech for MSPs  This is the Business of Tech.    Supported by: https://syncromsp.com/ All our Sponsors: https://businessof.tech/sponsors/ Do you want the show on your podcast app or the written versions of the stories? Subscribe to the Business of Tech: https://www.businessof.tech/subscribe/Looking for a link from the stories? The entire script of the show, with links to articles, are posted in each story on https://www.businessof.tech/ Support the show on Patreon: https://patreon.com/mspradio/ Want to be a guest on Business of Tech: Daily 10-Minute IT Services Insights? Send Dave Sobel a message on PodMatch, here: https://www.podmatch.com/hostdetailpreview/businessoftech Want our stuff? Cool Merch? Wear “Why Do We Care?” - Visit https://mspradio.myspreadshop.com Follow us on:LinkedIn: https://www.linkedin.com/company/28908079/YouTube: https://youtube.com/mspradio/Facebook: https://www.facebook.com/mspradionews/Instagram: https://www.instagram.com/mspradio/TikTok: https://www.tiktok.com/@businessoftechBluesky: https://bsky.app/profile/businessof.tech

The Pentagon has officially mandated the Cybersecurity Maturity Model Certification (CMMC) for defense contracts, transitioning from a policy framework to enforceable requirements. This regulation, set to take effect on November 10, 2025, requires contractors to meet specific cybersecurity benchmarks based on the sensitivity of the information they handle. With three certification levels, the CMMC aims to ensure that defense-focused providers adhere to stringent cybersecurity standards. This shift presents both opportunities and challenges for managed service providers (MSPs), as some small and medium-sized businesses may opt out of defense contracts due to compliance costs.In a significant development, researchers from New York University have demonstrated the feasibility of AI-powered ransomware, dubbed Ransomware 3.0. This proof-of-concept malware utilizes advanced large-language models to create targeted attacks, making it more difficult to detect and defend against. The incident underscores the growing trend of cybercriminals leveraging AI tools, raising concerns about the potential for real-world applications of such technology. Meanwhile, Microsoft has made multi-factor authentication (MFA) mandatory for Azure portal sign-ins, aiming to enhance cybersecurity and reduce account compromise risks.The podcast also highlights KnowBefore's new white paper on human risk management in cybersecurity, emphasizing a people-centric approach to bolster security culture. Additionally, Secret Double Octopus has launched a program to help MSPs eliminate passwords entirely, moving beyond traditional MFA solutions. Ignite has introduced AI agents tailored for the architecture, engineering, and construction sectors, streamlining documentation tasks and reducing project risks. Sentinel-1's acquisition of Observo AI aims to enhance security operations by improving data management capabilities.Apple recently unveiled updates to its operating systems and new hardware, including the iPhone 17, which features significant security enhancements like Memory Integrity Enforcement. The company is shifting to a year-based version numbering system for its OS updates, aiming for consistency across its ecosystem. While Apple introduced exciting new features, concerns linger about its AI capabilities compared to competitors like Google and Samsung. The podcast concludes by emphasizing the importance of security improvements and the potential support challenges that IT leaders may face as clients compare Apple devices with Android alternatives. Four things to know today 00:00 Pentagon Locks In CMMC Enforcement: Defense Contractors Must Certify or Exit by 202503:00 From AI-Powered Attacks to Forced MFA: Security Baselines Are Moving, and Providers Must Keep Up05:29 From Training to Passwordless to Vertical AI: Vendor Announcements Underscore Shift to Client-Focused Outcomes08:18 Apple's 2025 Launch Balances Security and Hardware Innovation While Downplaying AI This is the Business of Tech.    Supported by:  https://scalepad.com/dave/ https://cometbackup.com/?utm_source=mspradio&utm_medium=podcast&utm_campaign=sponsorship  All our Sponsors: https://businessof.tech/sponsors/ Do you want the show on your podcast app or the written versions of the stories? Subscribe to the Business of Tech: https://www.businessof.tech/subscribe/Looking for a link from the stories? The entire script of the show, with links to articles, are posted in each story on https://www.businessof.tech/ Support the show on Patreon: https://patreon.com/mspradio/ Want to be a guest on Business of Tech: Daily 10-Minute IT Services Insights? Send Dave Sobel a message on PodMatch, here: https://www.podmatch.com/hostdetailpreview/businessoftech Want our stuff? Cool Merch? Wear “Why Do We Care?” - Visit https://mspradio.myspreadshop.com Follow us on:LinkedIn: https://www.linkedin.com/company/28908079/YouTube: https://youtube.com/mspradio/Facebook: https://www.facebook.com/mspradionews/Instagram: https://www.instagram.com/mspradio/TikTok: https://www.tiktok.com/@businessoftechBluesky: https://bsky.app/profile/businessof.tech

OpenAI has projected a staggering $115 billion cash burn by 2029, raising significant concerns about the sustainability of the AI model market. Despite an anticipated revenue of approximately $13 billion this year, driven largely by ChatGPT, the company faces escalating costs that could lead to a cash burn exceeding $8 billion this year alone. This financial instability poses risks not only to OpenAI but also to its customers, who may find themselves affected by sudden changes in pricing, features, or business models as the company navigates its financial challenges.Klarna's recent experience serves as a cautionary tale about the pitfalls of over-relying on AI for customer support. After initially replacing 700 human agents with AI, the company faced a 17% default rate on loans and customer dissatisfaction, prompting a reversal of its strategy. As Klarna prepares for its stock market debut, it struggles to reintegrate human staff into its support system, highlighting the chaos that can ensue when companies prioritize AI over human interaction.The podcast also discusses the growing trend of shadow AI, where employees adopt consumer-grade AI tools independently due to a lack of official resources from their employers. This grassroots movement, while potentially increasing productivity, raises concerns about compliance and security. Experts emphasize the importance of establishing governance and policies around AI use to mitigate risks associated with unregulated adoption.Finally, a call from cognitive scientists and AI researchers urges academic institutions to critically assess the integration of AI technologies. They warn that uncritical adoption could undermine students' critical thinking skills and de-skill the future workforce. This sentiment reflects a broader concern within the tech industry about the need for a balanced approach to AI, ensuring that advancements genuinely enhance outcomes rather than simply serve as marketing hype. Four things to know today 00:00 OpenAI's Soaring Costs, Faulty “Reasoning,” and Legal Battles Expose Fragility of AI Model Market06:12 Klarna's AI Collapse and Rising “Shadow AI” Adoption Show the Risks of Unmanaged Automation08:33 Academics Warn Against Uncritical AI Adoption, Citing Risks to Critical Thinking10:36 From MSP360 to Google to Syncro, New AI and Security Launches Offer Convenience—But With Hidden Costs This is the Business of Tech.    Supported by:  https://cometbackup.com/?utm_source=mspradio&utm_medium=podcast&utm_campaign=sponsorship https://scalepad.com/dave/ All our Sponsors: https://businessof.tech/sponsors/ Do you want the show on your podcast app or the written versions of the stories? Subscribe to the Business of Tech: https://www.businessof.tech/subscribe/Looking for a link from the stories? The entire script of the show, with links to articles, are posted in each story on https://www.businessof.tech/ Support the show on Patreon: https://patreon.com/mspradio/ Want to be a guest on Business of Tech: Daily 10-Minute IT Services Insights? Send Dave Sobel a message on PodMatch, here: https://www.podmatch.com/hostdetailpreview/businessoftech Want our stuff? Cool Merch? Wear “Why Do We Care?” - Visit https://mspradio.myspreadshop.com Follow us on:LinkedIn: https://www.linkedin.com/company/28908079/YouTube: https://youtube.com/mspradio/Facebook: https://www.facebook.com/mspradionews/Instagram: https://www.instagram.com/mspradio/TikTok: https://www.tiktok.com/@businessoftechBluesky: https://bsky.app/profile/businessof.tech

The U.S. job market is experiencing a significant slowdown, with only 22,000 jobs added in August, marking the first net job loss since December 2020. The unemployment rate has slightly increased to 4.3%, indicating a decline in hiring and job seeker enthusiasm. Despite these challenges, the adoption of artificial intelligence (AI) in the labor market is not leading to widespread job losses. A recent survey revealed that only 1% of service firms reported job cuts due to AI, while many companies are retraining existing employees instead of laying them off. The tech sector, however, is seeing a rise in job postings requiring AI skills, reflecting a shift in hiring practices.Small businesses are facing increasing challenges as confidence in their marketing efforts declines, despite higher investments. A report indicates that only 18% of small and mid-sized businesses are very confident in their marketing outcomes, down from 27% the previous year. Many businesses are turning to AI tools and email marketing, but they struggle with limited time for marketing activities. Economic pressures, including rising costs and tariffs, are also impacting operational strategies, leading to concerns about the effectiveness of marketing investments.Tariffs are causing disruptions in tech pricing and delaying PC upgrades, with the removal of the de minimis exemption leading to increased costs for imported goods. This has resulted in price hikes for various products, including luxury items and personal computers. Despite the impending end of support for Windows 10, many businesses are hesitant to upgrade to Windows 11, opting instead for extended support packages. The rise of AI-enabled personal computers is notable, but the associated costs due to tariffs are making these upgrades more challenging for businesses.Broadcom is consolidating its control over VMware, transitioning a significant portion of its customers to subscription-based services. This move is part of a broader strategy to enhance the VMware Cloud Foundation offerings. Meanwhile, a new integration between DarcyIQ and Kaseya Autotask aims to improve operational efficiency for managed service providers by streamlining ticket and project management through natural language conversations. This highlights the need for smarter tools in the industry, as third-party solutions are increasingly filling gaps left by platform vendors. Four things to know today 00:00 U.S. Job Market Stalls, but AI Isn't the Culprit—Structural Shifts and RTO Mandates Drive Change05:58 SMBs Struggle with Marketing Confidence, Tariff Impacts, and Windows 10 Migration as AI PCs Rise09:59 Broadcom Tightens VMware Grip with Subscription Push, Locking in Top Clients and Leaving Others Behind12:05 Ecosystem Innovation Outsmarts Kaseya as DarcyIQ Delivers Natural Language Interface for Autotask This is the Business of Tech.     Supported by:  https://getnerdio.com/  All our Sponsors: https://businessof.tech/sponsors/ Do you want the show on your podcast app or the written versions of the stories? Subscribe to the Business of Tech: https://www.businessof.tech/subscribe/Looking for a link from the stories? The entire script of the show, with links to articles, are posted in each story on https://www.businessof.tech/ Support the show on Patreon: https://patreon.com/mspradio/ Want to be a guest on Business of Tech: Daily 10-Minute IT Services Insights? Send Dave Sobel a message on PodMatch, here: https://www.podmatch.com/hostdetailpreview/businessoftech Want our stuff? Cool Merch? Wear “Why Do We Care?” - Visit https://mspradio.myspreadshop.com Follow us on:LinkedIn: https://www.linkedin.com/company/28908079/YouTube: https://youtube.com/mspradio/Facebook: https://www.facebook.com/mspradionews/Instagram: https://www.instagram.com/mspradio/TikTok: https://www.tiktok.com/@businessoftechBluesky: https://bsky.app/profile/businessof.tech