Business of Tech

France's decision to discontinue American collaboration platforms such as Zoom and Microsoft Teams for government use—replacing them with the domestically developed Vizio platform—signals a shift toward digital sovereignty and data control within regulated jurisdictions. This move, formalized as part of France's Suite Numerique and to be implemented by 2027, highlights the increasing fragmentation of technology policy where national governments assert authority over platform selection and sensitive data handling. The development underscores operational risk for MSPs and IT service providers as assumptions of technology homogeneity across regions become unreliable.Supporting these shifts, South Korea enacted the world's first comprehensive AI legislation, requiring mandatory labeling of AI-generated content and risk assessments for high-impact systems, such as those in hiring and healthcare. According to the transcript, 98% of AI startups in South Korea report they are not prepared for compliance. Both developments reveal a pattern: early regulatory efforts tend to produce vague requirements, unclear enforcement, and real operational complexity. Providers operating in multiple jurisdictions must now anticipate compliance fragmentation and increased overhead as regulatory regimes diverge.Additional analysis focused on the continued evolution of the managed services stack, particularly through the lens of AI and workflow automation. Companies like Thrive are investing in enterprise platforms that embed AI-driven reasoning within workflow tools, shifting coordination away from traditional PSA ticketing systems. Meanwhile, integrations such as Quark Cyber with ScalePad's Lifecycle Manager X, and new partnerships between ServiceNow, TeamViewer, Anthropic, and OpenAI, illustrate a market splitting between providers focused on standardization and those managing more complex, enterprise-like environments. Microsoft's financial results further highlighted this trend, with record capital expenditure on AI infrastructure and increased reliance on proprietary chips to reduce dependency on external vendors like Nvidia and OpenAI.For MSPs, these developments raise practical governance and accountability questions. Shifts in regulatory authority and technology platforms create increased risk exposure for providers that do not proactively manage cross-jurisdictional compliance and secure defaults. Vendors are tightening control over platforms as AI becomes central to product architecture, often prioritizing internal risk management over shared upside with partners. Providers that fail to enforce robust data governance, understand cost drift, or plan for architectural lock-in are positioned less as strategic advisors and more as absorbers of client and vendor risk.Four things to know today00:00 France's Platform Ban and South Korea's AI Law Show Regulation Catching Up to Technology04:23 AI Is Reshaping the MSP Tool Stack as Thrive, ServiceNow, and ScalePad Take Different Paths07:37 Microsoft's SMTP AUTH Delay and CISA's AI Slip Show the Risk of Optional Security ControlsAND10:26 Earnings Show Microsoft Turning AI From Feature to Infrastructure as Partner Risk GrowsSponsored by: TimeZest 

Global channel sales in IT are projected to exceed $4 trillion this year, with two-thirds of total spending driven by partner-led deals, according to Omdia research. However, managed service providers (MSPs) continue to encounter significant integration failures following mergers and acquisitions, leading to operational inefficiencies and diminished client trust. The Business of Tech analysis highlights that stacking acquisitions without comprehensive integration amplifies risks, particularly affecting margins, service consistency, and accountability.Supporting survey data from POPX indicates that 60% of UK MSPs report platform and data integration as critical hurdles post-acquisition, while 44% identify poor morale and lack of team alignment as sources of inefficiency. Notably, 38% experienced client disruption during transitional periods, signaling that rapid growth without sufficient operational coherence creates drag rather than leverage. These issues are compounded by rising technology budgets—nearly 75% of organizations expect increased IT spending—and intensifying reliance on AI and cloud services in MSP environments.Additional stories addressed include the widespread adoption of unsanctioned "Shadow AI" tools in healthcare settings, with over 40% of workers aware of unapproved usage, and the increasing tendency for AI platforms to reference general sources like YouTube over traditional medical authorities. The episode further examines new AI-driven arbitration tools, platform consolidations within managed security, and the centralization of authority across purchasing and service delivery ecosystems. Vendor integrations, such as Synchro's marketplace partnership with Ironscales and LevelBlue's acquisition of AlertLogic's unit, illustrate a shift away from component choices towards streamlined, but potentially opaque, accountability structures.For MSPs and IT service leaders, the central takeaway is not the urgency to adopt new tools, but the necessity to clarify ownership, governance, and liability as technology platforms accelerate efficiency and centralize control. Failure to address integration fundamentals, define formal oversight for AI-driven decisions, and maintain transparency amid automation will expose service providers to unpriced risks and erode client trust. Sustained growth is contingent upon operational discipline, not just expanding portfolios. Four things to know today 00:00 Channel Growth Accelerates While MSP Integration Failures Threaten Margins and Trust03:58 New Research Shows Agentic AI Adoption Outpacing Governance and Workforce Readiness07:25 AI Interfaces, Security Consolidation, and MSP Marketplaces Point to a Shift in Where Authority Lives10:27 AAA's AI Arbitrator Shows How Automation Changes Who Owns Decisions, Not Just How Fast They're Made This is the Business of Tech.    Supported by: 

AI adoption within organizations is increasingly polarized, with Gallup data cited showing that while 77% of technology professionals use AI at work, overall workplace adoption rose only marginally from 45% to 46% in late 2025. This stagnation is attributed not to employee reluctance, but to aggressive uptake by leadership without corresponding redesign of roles and workflows at lower organizational levels. In the UK, research presented notes an 8% net job loss tied to AI alongside a 11.5% productivity increase, with younger workers expressing heightened concern over future employment security.Supporting analysis emphasizes that AI utilized only in decision-making circles can compress organizations, trading resilience for short-term efficiency. Dave Sobel cautions that celebrating productivity gains without acknowledging operational fragility introduces organizational brittleness, as headcount reductions outpace tangible capability improvements across all layers. The discussion underscores the risk in pitching AI as a leadership tool without regard for its broader impact.Additional topics include the risks of encryption practices—specifically Microsoft's BitLocker—and the limits of user control over recovery keys when stored in the cloud. Dave Sobel highlights governance failures when MSPs assume encryption equates to privacy without explicit decisions regarding key custody and authority, noting that silent trade-offs can expose organizations to privacy vulnerabilities. Furthermore, coverage of CISA's absence from RSA conference outlines how diminished federal engagement increases liability and ambiguity for MSPs tasked with interpreting security policy. New video authentication features from Ring are examined as evidence of a broader shift where provenance and chain of custody outweigh convenience, directly affecting the evidentiary value of managed data.The overarching implication for MSPs and IT providers is clear: risk, authority, and liability are being systematically reallocated within the supply chain and between vendors, government, and service providers. Operational preparedness now depends on explicit documentation, governance choices, and advance recognition of liability transfer. Failing to adapt—by leaving deployment decisions, key management, and evidentiary workflows unexamined—may result in organizational fragility, legal exposure, and loss of client trust. Four things to know today 00:00 Stalled AI Adoption and UK Job Losses Show Productivity Gains Are Not Broadly Shared04:06 BitLocker Encryption Allows Microsoft Access to Recovery Keys Stored in the Cloud06:21 CISA Breaks From Past Practice, Declines RSA Conference Appearance08:36 Ring Uses Cryptographic Seals to Verify Video Authenticity as Evidence Trust Becomes a Governance Issue This is the Business of Tech.    Supported by:  https://scalepad.com/dave/

Global managed services contracts are experiencing reduced momentum as buyers display notable hesitation to commit to long-term agreements during a period defined by organizational pivots toward artificial intelligence. The Information Services Group reported only a 1.2% quarter-over-quarter increase in large managed services contracts in late 2025, totaling $10.9 billion, with full-year growth barely above 1%. While U.S. activity partially offsets contractions in EMEA and APAC, the prevailing environment is one of caution, shaped less by CIOs and more by business and finance leaders redirecting budgets to support internal AI initiatives and flexible operating arrangements.The growth in technology distributor activity in North America highlights increased market fragmentation rather than expanded service levels. Omdia Tech Services data indicates distributor billings grew almost 15% in 2024, reaching $16.6 billion, with over 72% of transactions concentrated among six distributors. Most billings originated with technology advisors, and both value-added resellers and MSPs contributed smaller shares. This shift points to a market emphasizing flexible sourcing—with more intermediaries and shorter deals—but raises questions about MSP control, as authority and accountability can become diluted.Intel's latest financial disclosures reveal persistent supply and execution challenges in delivering AI infrastructure solutions. Despite exceeding earnings expectations, weak revenue forecasts and admission of supply constraints resulted in a 13% decrease in company stock. The vendor attributed its underperformance to capacity shortages and forecasting issues, underscoring the risks MSPs now face in hardware planning for AI deployments. Additionally, the commoditization of key offerings such as Microsoft 365 backup and the automation of technology review processes further compress execution margins, reducing traditional revenue sources for service providers.For MSPs and IT leaders, these developments reinforce the need to reassess risk allocation, authority, and pricing models in client engagements. With execution becoming both cheaper and less differentiated, value must shift toward governance, outcome accountability, and explicit decision ownership. Delays or misjudgments related to hardware supply and service fulfillment present direct threats to project continuity and client satisfaction, emphasizing the importance of operational flexibility, active vendor management, and strategic repositioning of service offerings. Three things to know today 00:00 As Managed Services Stall Globally, Distributor-Led IT Buying Gains Momentum04:58 Intel Beats on Earnings but Misses on Confidence as AI Demand Outpaces Capacity07:27 As Backup and Reviews Are Automated, MSP Differentiation Shifts from Execution to Decision Ownership This is the Business of Tech.     Supported by:  https://scalepad.com/dave/

This Business of Tech episode delves into the critical alignment of technology with how people work, emphasizing the strategic advantage for businesses, particularly those leveraging Apple ecosystems and remote teams. Rob Calvert, President of Second Son Consulting, highlights common misconceptions in IT, where decisions are often made in a vacuum without considering company culture or workflows. This disconnect leads to daily friction and hinders growth. Calvert shares an example of implementing zero-touch MDM, where the technological aspect is straightforward, but the real challenge lies in adapting workflows and company culture to accommodate remote hiring and device deployment timelines, ultimately enabling faster growth with less operational friction.The discussion underscores the importance of integrating IT decisions with broader business objectives. Calvert explains that for small to mid-sized businesses, understanding and defining existing workflows is a crucial first step. His firm's process involves auditing technology platforms, establishing role-based standards for new hires, and documenting procedures for onboarding and offboarding. This systematic approach, exemplified by streamlining onboarding from hours to minutes, ensures that technology serves as an asset rather than an obstacle, optimizing efficiency and security.Further insights are provided on security and compliance within Apple-centric environments, contrasting them with Microsoft-centric approaches. Key differences include procurement styles, the utilization of Apple Business Manager, and the implementation of non-removable MDM for enhanced security and control. The episode also touches on the growing impact of AI, with a focus on enabling local, on-device AI to address privacy concerns and accelerate business processes like proposal writing and research, while emphasizing the need for leadership to guide AI adoption and manage associated security implications.For MSPs and IT service leaders, the episode offers actionable strategies for improving client IT infrastructure. It stresses the value of aligning technology with specific business workflows and company culture to reduce friction and boost productivity. The discussion on Apple-centric IT and AI adoption provides practical guidance on managing devices, implementing robust security measures, and leveraging new technologies responsibly. The emphasis on creating standardized, documented processes for onboarding and offboarding, while remaining flexible to client needs and potential risks, is a key takeaway for enhancing service delivery and client satisfaction.

The episode centers on structural changes in the Managed Service Provider (MSP) mergers and acquisitions (M&A) landscape, with a focus on the increased influence of private equity (PE), platform strategies, and disciplined deal execution. Dave Sobel and Abraham Garver highlight that the primary driver for buyers has shifted from merely acquiring revenue to seeking operating models that support scale, standardization, and automation. Size of institutional funds directly shapes acquisition targets: funds with $500 million or more increasingly pursue MSPs with minimum EBITDA thresholds, commonly $3–5 million, with larger funds only able to transact at the $10–15 million EBITDA level or above. This signals a market separation, where smaller MSPs face heightened risk of being excluded from future platform opportunities.Supporting these structural shifts, Abraham Garver explains that the buyers' value assessment increasingly prioritizes new customer acquisition over one-off gains from cross-sales like cybersecurity add-ons. Organic growth, shown through the consistent addition of new client logos, outweighs temporary revenue boosts in determining valuation. The episode also outlines that AI investment and automation stories are not materially lifting valuations for smaller MSPs, unless directly reflected in improved financials. Larger providers may have the resources to invest meaningfully in AI, but for the majority—especially those below $10 million in revenue—outsourcing or leveraging third-party solutions is more practical than bespoke, high-cost internal development.A further operational risk discussed is the prevalence of "retrading"—buyers renegotiating valuations post–Letter of Intent (LOI) based on due diligence findings. Abraham Garver reveals that 60% of transactions see price reductions after the LOI, often for factors such as recent customer losses or missed forecasts, diverging from initial headline multiples. This reality highlights the importance of diligent contract negotiation, clear documentation, and the value of experienced advisors to navigate buyer tactics. Rob Calvert contributes additional insight on workflow and technology alignment, emphasizing the role of standardized onboarding and offboarding processes in reducing both operational friction and security gaps.For MSPs and IT service providers, the discussion clarifies several critical implications. First, with platform buyers seeking scale, only MSPs meeting explicit EBITDA and growth metrics will attract competitive offers; others should realistically assess the cost and likelihood of reinvention versus sale. Second, buyers' focus on execution and organic growth, not headline multiples or claims of technological advancement, makes robust financial performance and client acquisition strategies essential to preserving value. Third, the commonality of post-LOI repricing underlines the need for rigorous pre-sale diligence, explicit contractual terms, and experienced representation to preserve deal value and protect against downside risk. Lastly, operational standardization—especially in device and data management—remains central to both platform attractiveness and risk mitigation.

Anthropic's disclosure of model drift within its Claude AI system highlights growing risks surrounding governance and ongoing alignment of artificial intelligence. The company has revised its guidelines using a “Constitutional AI” approach, aiming to instill reason-based behavior and ethical boundaries, and has openly acknowledged that an AI's internal controls may shift unpredictably over time—a concern when models are deeply embedded in business workflows. This admission places attention on governance and accountability rather than just model safety, making clear that the AI a company tests may become materially different after extended deployment, especially as personalization increases.Supporting these concerns, Anthropic's research demonstrated that large language models—including those from Google and Meta—can experience personality drift, with unintended shifts in behavior due to instability of internal control mechanisms. Google's updated AI offerings, tying personal data from Gmail and Photos to generative model responses, intensify challenges around data governance and organizational control. As vendors expand AI personalization and memory features, oversight gaps can emerge, raising questions about who retains authority over information, inference, and decision-making within automated systems.Adjacent findings indicate that the anticipated productivity gains from AI have yet to reach most enterprises. According to surveys cited by Dave Sobel, over half of CEOs report failing to realize ROI from AI investments, while frontline employees describe AI integrations as sources of friction and additional workload rather than relief. In the MSP sector, widespread adoption of “agentic” AI and digital labor is delivering financial upside for some providers, but it is also shifting operational liabilities—especially as contracts and security architectures lag behind new workflow realities.The core takeaway for MSPs and IT service providers is the necessity of reexamining control, authority, and contractual obligations in AI-enabled environments. Delegating tasks to automated agents increases exposure to unpriced and unmitigated risks if governance, liability, and monitoring mechanisms do not adapt accordingly. Effective harm reduction in this landscape requires treating workflows—not just models—as security perimeters, clarifying accountability for AI-driven actions, and ensuring that contractual and operational frameworks reflect these new sources of risk.00:00 AI Governance Moves Center Stage as Models Drift and Personalization Deepen05:08 AI Boosts Executive Productivity While Frontline ROI and Employee Experience Lag07:51 AI Exposes the Real Divide: Governance Failures vs. Effective Oversight in Government Systems10:39 MSPs Chase AI-Driven Margins, but Workflow Security and Liability Define the Real Risk This is the Business of Tech.   

Escalating distrust in identity systems and misuse of AI are forcing a shift in security accountability for small and midsize businesses. Recent analysis highlights that the prevalence of deepfake-driven business email compromise and non-human digital identities is eroding confidence in traditional protective solutions. According to Techyle and supporting reports referenced by Dave Sobel, the ratio of non-human to human identities in organizations is now 144:1, further complicating authority and responsibility for managed service providers (MSPs). As trust in exclusive third-party control disintegrates, co-managed security models are becoming standard, repositioning decision-making and liability.The rise of AI-generated data—described as “AI slop”—has prompted increased adoption of zero trust models, with 84% of CIOs reportedly increasing funding for generative AI initiatives. However, as rogue AI agents are recognized as a significant insider threat, current security services are often ill-equipped to manage these new vulnerabilities. Regulatory bodies, including CISA, have issued guidance noting that the integration of AI into critical infrastructure introduces greater risk of outages and security breaches, particularly when governance remains ambiguous. High-profile vulnerabilities in open-source AI platforms used within cloud environments further highlight the persistence of operational risks.Adjacent technology updates include new releases from vendors such as 1Password, WatchGuard, JumpCloud, and ControlUp. These offerings focus on enhancing phishing prevention, expanding managed detection and response, and automating endpoint management for MSPs. However, Dave Sobel emphasizes that these tools introduce additional layers of automation and integration without adequately clarifying who ultimately holds authority and accountability when failures or breaches occur. There is a consistent warning that stacking solutions or outsourcing core functions without redefining operational control creates gaps between action and oversight.For MSPs and IT leaders, the key takeaway is that security risk is no longer defined by missing technology but by unclear governance, undefined authority, and misaligned incentives. Without explicit contractual and operational delineation of responsibility when deploying AI and automation, service providers are increasingly exposed to liability by default. The advice is to move beyond tool-centric strategies and focus on process clarity: define who authorizes, audits, and terminates non-human identities; establish which parties approve automation actions; and ensure clients understand shared responsibilities to mitigate silent risk accumulation. Four things to know today00:00 TechAisle Warns SMB Security Will Shift in 2026 as Identity Attacks and AI Agents Redefine Risk05:44 AI Moves Deeper Into Critical Infrastructure as Open-Source and Human Weaknesses Expand the Attack Surface09:35 MSP Security Platforms Automate Phishing Prevention and MDR—Outpacing Governance and Control Models12:12 AI-Powered MSP Tools Promise Control and Efficiency, But Shift Responsibility by Default This is the Business of Tech.    Supported by:  https://scalepad.com/dave/

PC spending has seen a significant rebound, with Gartner reporting a 9.3% rise in worldwide PC shipments in late 2025, primarily driven by corporate IT upgrades to meet Windows 11 requirements. This recovery, which saw 10.1% growth in Q4 2025 according to Omnia data, highlights a shift from consumer-led demand to necessity-driven upgrades. Despite supply chain challenges in memory and storage, leading to cost increases, 57% of B2B partners anticipate growth in their PC business, underscoring a sustained demand for hardware management and support among MSPs.Concurrently, worldwide spending on artificial intelligence is projected to reach approximately $2.5 trillion by 2026, a 44% increase from the previous year, according to Gartner. This surge is fueled by substantial investments in AI infrastructure, which is expected to account for $1.37 trillion of the total spending. John David Lovelock of Gartner emphasizes that AI adoption success hinges not only on financial investment but also on organizational maturity and self-awareness, suggesting that the value derived from this investment is not yet as certain as the spending itself. For MSPs, this indicates a growing need to navigate the complexities of AI infrastructure deployment and demonstrate tangible value to clients.In the realm of managed services, recent strategic moves by several companies signal an evolving MSP landscape. Corsica Technologies announced 105% year-over-year growth in managed services bookings for 2025 and expanded its portfolio through acquisition, aiming for consolidation and integrated offerings. Net at Work nearly doubled its managed services division size by acquiring a regional competitor, prioritizing scale. Rhubarb IT, spun out from Mac Center, is focusing on a niche Apple-focused IT managed services model, aiming for differentiation. These expansions highlight varying strategies—consolidation, scale, and specialization—that MSPs must consider when evaluating market opportunities and competitive positioning.The implications for MSPs are multi-faceted. The PC market's recovery emphasizes the continued importance of hardware lifecycle management and support services. The explosive growth in AI spending necessitates careful evaluation of infrastructure versus value, with potential risks for organizations rushing capacity purchases without clear demand justification. Furthermore, the diverse expansion strategies among MSPs underscore the need for clear operational, contractual, and financial planning to manage integration, delivery consistency, and customer expectations. The appointment of Rob Rae as a strategic advisor to Guards highlights the critical need for transparency in vendor relationships, particularly concerning incentives, as undisclosed financial arrangements can introduce bias and risk for MSPs who rely on objective evaluation of technologies and partners. Four things to know today 00:00 PC Spending Reflects Operational Necessity While AI Spending Bets on Unproven Demand03:57 OpenAI Promises to Offset Energy and Water Impact as AI Infrastructure Outpaces Regulation05:45 MSP Growth Paths Diverge as Corsica, Net at Work, and Rhubarb IT Make Different Strategic Bets09:09 Guardz's Rob Rae Advisory Appointment Raises Transparency and Governance Questions for MSPs This is the Business of Tech.    Supported by:  https://cometbackup.com/?utm_source=mspradio&utm_medium=podcast&utm_campaign=sponsorship

OpenAI is introducing advertisements into ChatGPT for free and ChatGPT Go users, aiming to fund artificial general intelligence development. These ads will be clearly labeled and separate from AI responses, with OpenAI stating user conversations will remain private and data will not be sold. Ads will be excluded from sensitive topics. Users can avoid ads by upgrading to a paid subscription, such as the new $8/month ChatGPT Go tier, which offers increased limits and access to the latest model but also features advertisements. This move signifies a monetization strategy, with OpenAI reporting significant revenue growth for ChatGPT.The broader impact of AI on jobs is also discussed, with data suggesting job losses attributed to AI may be overstated. While some roles are affected, particularly entry-level positions, the overall employment impact appears limited. Reports indicate that AI is often used as a justification for layoffs driven by economic factors or overhiring, rather than being the sole cause. The analysis highlights that AI's productivity gains are currently modest, requiring substantial increases to drive large-scale job replacement. However, the International Monetary Fund estimates nearly 40% of global jobs are at risk due to AI, with a growing demand for new skills that offer a wage premium.Automation and platform integrations are accelerating, with ConnectWise acquiring ZofIQ to automate service desk operations within its PSA workflow. D&H is expanding its logistics capabilities by acquiring fulfillment.com, enhancing its supply chain services. Microsoft MVPs are collaborating to showcase free Intune management tools to help organizations manage their Intune environments more effectively. These developments indicate a trend towards deeper platform integration and automation within IT service delivery and logistics.For MSPs and IT service providers, these developments highlight several critical considerations. The introduction of ads in AI tools like ChatGPT raises questions about trust and governance, particularly when these tools are integrated into client-facing workflows. The slowdown in hiring, especially for junior roles, underscores the need for strategic talent development to avoid future capacity gaps. Furthermore, the increasing automation within platforms and services, while offering efficiency, necessitates careful management of counterparty risk, clear contractual definitions of authority, and redefined pricing models to account for shifting liability and decision-making. Vendors retreating from emerging technologies like Meta's VR business also underscore the importance of diligent vendor selection and managing the credibility cost associated with adopted technologies. Four things to know today 00:00 Jobless Claims Fall as Small Businesses Pull Back on Hiring, Especially Entry-Level Roles05:45 OpenAI Adds Ads to ChatGPT as It Scales Revenue, Expands Go Tier, and Deepens Enterprise and SMB Adoption09:17 Automation Moves From Tools to Authority as ConnectWise, D&H, and Intune Ecosystems Shift Control—and Risk13:05 Meta's Retreat from Business VR Leaves MSPs Managing Cleanup, Data Deletion, and Client Expectations This is the Business of Tech.    Supported by:  https://scalepad.com/dave/

The discussion highlights the limitations of traditional cybersecurity training methods, emphasizing that a psychology-informed approach with positive reinforcement is crucial for developing genuine cyber literacy within organizations. Traditional "gotcha" tactics, such as fake phishing tests, are shown to be ineffective and can even lead to increased clicks, according to research from the University of Zurich and Black Hat. This approach risks creating a false sense of security without genuinely improving user behavior.Craig Taylor, CEO of Cyberhoot, advocates for a positive reinforcement model rooted in operant conditioning principles, where rewarded behaviors are repeated and internalized. This strategy is implemented through gamified modules, such as interactive "Hootfish" exercises that guide users in identifying threats with in-moment assistance. Progress is tracked via avatars that mature with learning, and an anonymous company leaderboard encourages engagement, particularly motivating management to complete assignments. These elements aim to foster intrinsic motivation for security best practices rather than relying on external pressure or punishment.The conversation also delves into the challenges of measuring security progress, noting that traditional phishing tests often fail to capture a complete picture of an organization's security posture, particularly with C-suite employees who may not engage with such tests. The episode touches upon the complexities of evolving cybersecurity threats, including AI-powered personalized attacks, and the inherent difficulties in relying solely on human training against sophisticated adversaries. Furthermore, the discussion addresses the lack of accountability for cybersecurity vendors with faulty software, contrasting it with product liability in other industries, and the debate around the absence of consistent federal regulations for AI and data privacy in the US compared to Europe's GDPR.For MSPs and IT service leaders, this episode underscores the need to adopt more effective, psychology-driven security awareness programs that focus on positive reinforcement and intrinsic motivation. It highlights the limitations of purely technical or punitive cybersecurity measures and emphasizes the importance of a comprehensive strategy that combines user education with robust technical defenses. The discussion also serves as a reminder for MSPs to critically evaluate vendor security practices and to advocate for stronger accountability and clearer regulatory frameworks to protect client data and services.

The discussion centers on the rapidly evolving landscape of AI adoption within businesses, highlighting a significant gap between individual user experimentation and formal organizational strategies. While employees across various departments are actively using AI tools for productivity gains, many executive leaders remain hesitant to formally adopt or fund these technologies due to concerns about governance and risk. This creates a "skunk works" environment where individual adoption outpaces official oversight, leading to a potential shadow IT problem for organizations. For MSPs, this presents an opportunity to offer AI governance and risk assessment services, helping clients navigate the complexities of safe and effective AI integration.The episode underscores the compressed adoption cycle of AI compared to previous technology waves like cloud and cybersecurity. While those technologies took years to move from early adopters to mainstream paid engagements, AI has accelerated this process into months. However, this rapid adoption has also exposed new pitfalls, particularly concerning the unknown risks of AI, such as intellectual property disclosure or compliance breaches. The conversation emphasizes that the focus for businesses is shifting from the capabilities of AI to the potential consequences of its misuse, making risk assessment a critical concern for IT service providers looking to guide their clients.A significant portion of the discussion addresses the growing concerns around delegated responsibility and the potential for autonomous systems to make decisions without human oversight. As AI-driven automation expands, the liability for errors or unintended consequences will increasingly fall on IT service providers who implement these systems, rather than solely on the software vendors. This is expected to lead to a "contract lag" as existing agreements fail to account for new AI-related liabilities, prompting a need for updated contractual language and risk allocation frameworks. MSPs will need to proactively address these emerging liabilities to build trust and secure new business in the AI-driven IT services market.The episode concludes by examining the dichotomy between highly technical users who approach AI with incremental caution within existing compliance frameworks, and business users who are adopting AI more rapidly, sometimes without fully considering regulatory or security implications. This necessitates tailored governance strategies for different user groups. For MSPs, the immediate opportunity lies in offering risk assessment and advisory services to help organizations understand their AI exposure. Furthermore, the industry faces a crucial challenge in evolving from rigid standardization to adaptable service models that can accommodate the unique risks and opportunities presented by AI, ultimately determining relevance and avoiding obsolescence in the rapidly changing tech landscape.

Apple has introduced Creator Studio, a subscription-based suite that embeds AI-assisted features directly into familiar productivity and creative tools while maintaining strict control over interfaces and user experience. Alongside this launch, Apple confirmed a multiyear partnership with Google to use Gemini and Google Cloud as foundational AI infrastructure, reportedly involving annual payments of around $1 billion. The approach reinforces Apple's strategy of treating AI models as interchangeable components while retaining authority at the application layer, shifting responsibility for governance and oversight away from the platform and toward downstream users and advisors.Google, meanwhile, expanded Gemini through a new Personal Intelligence feature that can reason across Gmail, Photos, Search, and YouTube data for consumer accounts. Available initially to paid subscribers and requiring explicit consent, the capability highlights Google's advantage in contextual data rather than model novelty. By keeping the feature out of Workspace for now, Google appears to be setting user expectations in consumer environments before enterprise deployment, a move that may influence how business users evaluate AI-enabled decision support in the future.Pax8 disclosed a data leak affecting approximately 1,800 MSP partners after an internal spreadsheet was mistakenly shared with a limited number of recipients. While no personally identifiable information was exposed, the data included licensing and commercial details that could be used for competitive intelligence or targeted attacks. The incident coincides with Pax8's rapid international expansion, new regional offices, and growing reliance by MSPs on its marketplace for procurement and security tooling, including the recent addition of Cork Cyber's risk intelligence platform.Taken together with renewed attention on AI governance, the Secure by Design initiative, and guidance on when to apply GenAI versus traditional code, the episode underscores a widening gap between automation and authority. Surveys show a majority of IT leaders now prioritize AI governance, reflecting concern over accountability, data flows, and failure handling. For MSPs and IT service providers, these developments reinforce the need to clearly define who has the power to approve, pause, or override AI-driven systems and platform dependencies, as clients increasingly expect service providers to explain and manage outcomes they may not fully control. Four things to know today Apple's Creator Studio and Google Partnership Show a Strategy Built on Control, Not AI OwnershipAs Gemini Reasons Across Gmail, Search, and YouTube, Google Redefines AI Advantage Around Context            Pax8 Data Leak, Rapid Expansion, and Marketplace Growth Expose Risk Shift to MSPsAI Governance, Secure by Design, and GenAI Adoption Reveal a Growing Authority Gap for MSPs This is the Business of Tech.    Supported by:  https://scalepad.com/dave/

This episode examines why growing concern over AI-driven skills obsolescence is less about workforce displacement and more about authority, accountability, and liability for MSPs. As AI systems increasingly triage tickets, remediate issues, and shape outcomes, MSPs are absorbing responsibility for decisions made by tools they did not design and cannot fully audit. The mismatch between AI-driven operations and pre-AI contracts, SLAs, and pricing models creates a widening risk gap that directly threatens margins and client trust. The show then turns to AI infrastructure, focusing on Microsoft's response to rising power and water costs tied to data center expansion. While public commitments emphasize cost control and community investment, the underlying reality for IT service providers is continued volatility. AI workloads remain energy-intensive and politically sensitive, and those costs are likely to be passed downstream. MSPs that price AI-dependent services on today's assumptions risk margin erosion when infrastructure costs shift faster than contracts can be updated.Next, the episode explores how workplace AI tools from Anthropic and Slack are moving beyond assistance into shaping finished work. By summarizing conversations, organizing files, and producing artifacts that become the default record, these tools quietly define “what happened.” For MSPs, this pulls them deeper into advisory territory, as AI-generated outputs influence decisions, accountability, and client understanding—often without clear acknowledgment of what context or nuance was lost. Finally, the episode connects a wave of AI-driven acquisitions to a single strategic thread: vendors racing to own not just insight, but action. As platforms consolidate signals across usage, identity, cost, and observability, the pause between insight and execution disappears. For MSPs, the risk is not being replaced outright, but being sidelined as platforms decide faster than humans can intervene. The path forward is not resisting consolidation, but asserting value where judgment, context, and governance still matter.Four things to know today00:00 Report Warns 40 Percent of IT Skills May Become Obsolete as AI Reshapes Work04:42 Microsoft's AI Data Center Commitments Highlight the Growing Cost and Governance Risks of AI Infrastructure07:16 Anthropic and Slack Expand AI From Assistance to Shaping Finished Work11:00 AI-Driven Acquisitions Show Vendors Consolidating Signals to Move Faster From Insight to Action Supported by: https://cometbackup.com/

Rising workplace use of artificial intelligence is outpacing organizational governance, according to data from Microsoft and Gallup. Microsoft reports global AI adoption reached 16.3% in 2025, while Gallup finds nearly half of U.S. workers use AI tools at work at least annually. Despite that usage, only a minority of employees report clear employer guidance on AI ownership and purpose, creating accountability gaps that frequently surface during incidents or audits.Additional data underscores uneven adoption and oversight. Microsoft's AI Economy Institute notes adoption rates in the Global North are nearly double those in the Global South, correlating with earlier infrastructure and policy investment. Within organizations, most AI usage remains occasional rather than daily and is concentrated in knowledge roles, suggesting informal, user-driven deployment rather than standardized programs—conditions that complicate governance for MSP-supported environments.Microsoft's product moves further elevate the governance issue. The company is testing policies allowing IT administrators to uninstall Copilot on managed devices while simultaneously enforcing Windows and Office end-of-life timelines through 2026 and embedding purchasing directly into Copilot workflows. These changes expand administrative control but also place AI more firmly inside operational and economic decision paths that MSPs help manage.Platform announcements from Acronis, Hexnode, and Google extend automation from assistance to execution, while public comments from Nvidia CEO Jensen Huang and Linux creator Linus Torvalds highlight differing views on AI speed versus discipline. For MSPs and IT service providers, the practical takeaway centers on accountability: as AI systems take actions rather than make suggestions, governance, policy definition, and oversight become explicit services rather than implied responsibilities. Four things to know today 00:00 AI Use Expands at Work, but Employees Say Transparency and Ownership Are Missing04:37 Microsoft Lets IT Uninstall Copilot as Windows and Office End-of-Life Deadlines Near07:38 Acronis Launches Archival Storage as Hexnode and Google Advance Platform-Centric Automation11:07 Jensen Huang Warns Against AI Regulation as Linus Torvalds Limits AI's Role in Critical Code This is the Business of Tech.     Supported by:  https://scalepad.com/dave/

Slowing U.S. job growth alongside rising labor productivity highlights how organizations are replacing hiring with automation and AI-driven systems. Government labor data shows job growth in 2025 fell to roughly 584,000 positions, while productivity rose nearly five percent in the third quarter, allowing output to increase without additional staff. According to CompTIA, demand for AI-related skills rose more than 100 percent year over year, even as overall tech employment declined. For MSPs, this signals a shift where customers rely less on internal teams and more on external providers to absorb operational responsibility when automated systems fail.Survey data from TechAisle indicates that small and midmarket businesses are redirecting technology spending away from basic digitization toward autonomous, outcome-driven systems. The research, based on responses from 5,500 firms, shows profitable growth and cost control as top priorities for 2026, with increased adoption of generative AI, agentic automation, and managed security services. At the same time, rising RAM and storage prices—driven by AI data center demand, according to TrendForce—are delaying PC refresh cycles and pushing workloads into cloud environments, changing where performance, security, and cost risks surface.Vendor signals remain mixed. Kaseya reported layoffs affecting five percent of its workforce, following earlier reductions, while TD Synnex and Samsung reported strong revenue growth tied to AI infrastructure, memory, and server demand. Distributors cite continued hardware refresh activity, yet repeated workforce cuts at vendors suggest internal cost corrections rather than demand collapse. For MSPs, this combination increases environmental complexity, with longer device lifecycles, higher component costs, and more heterogeneous platforms to support.Operational AI announcements further extend decision-making authority into automated systems. New healthcare, printing, and service desk tools embed AI into intake, routing, authorization, and workflow execution, often acting before human review. For MSPs and IT service providers, the central issue is not efficiency gains but accountability: when AI-driven processes misroute work, generate compliance errors, or escalate incidents incorrectly, responsibility frequently defaults to the operator. The episode underscores the need for clearer governance, pricing, and contractual boundaries as AI assumes functional authority inside managed environments. Four things to know today 00:00 Slowing Job Growth, Rising Productivity, and AI Adoption Shift Operational Responsibility to Providers05:26 TechAisle Data Shows SMB Focus Moving From Digitization to Autonomous, Outcome-Driven Systems09:19 Kaseya Cuts Staff as Distributors and Chipmakers Report Strong AI-Driven Demand14:27 Operational AI Advances as Vendors Embed Automation Into Intake, Routing, and Authorization This is the Business of Tech.    Supported by:  https://cometbackup.com/?utm_source=mspradio&utm_medium=podcast&utm_campaign=sponsorship

Procurement is experiencing a significant shift as organizations increasingly adopt automation and artificial intelligence (AI) to enhance sourcing, purchasing, and spend management processes. Kevin Frechette, CEO and co-founder of Fairmarkit, discusses how their platform enables enterprises to transition from manual procurement methods to AI-driven autonomous sourcing. This shift allows procurement teams to handle up to ten times more sourcing events per buyer and potentially save $40,000 weekly per full-time employee (FTE) by streamlining operations and reducing the time spent on repetitive tasks.Frechette highlights a case study involving a Boston-based customer that reduced the time required to clarify requests and set up sourcing events from 40 minutes to just 2 minutes through Fairmarkit's automation capabilities. The platform employs AI to facilitate various stages of the sourcing process, including demand capture, supplier identification, and event awarding. However, Frechette emphasizes the importance of maintaining human oversight in certain areas, particularly where nuanced decision-making is required, ensuring that AI complements rather than completely replaces human judgment.The conversation also touches on the evolving role of procurement professionals in the face of automation. While some experienced workers may resist change, Frechette notes that younger professionals are often more adaptable and eager to embrace new technologies. This generational shift could lead to a more innovative approach to procurement, as new entrants to the field leverage AI tools to enhance their decision-making capabilities and drive efficiency.For Managed Service Providers (MSPs) and IT service leaders, the implications of these developments are clear. Embracing AI and automation in procurement can lead to significant operational efficiencies and cost savings. However, it is crucial for organizations to establish a framework for human involvement in decision-making processes, ensuring that the benefits of AI are maximized while maintaining accountability and oversight. As the landscape of procurement continues to evolve, staying informed and adaptable will be essential for MSPs and IT providers looking to remain competitive.

The recent acquisition of Small Biz Thoughts and IT Service Provider University by MSP Radio marks a significant shift in the landscape of resources available to Managed Service Providers (MSPs). This acquisition aims to ensure the continued stewardship of valuable intellectual property, including books and community resources, while allowing founder Karl Palachuk to refocus on his original goals of writing, speaking, and traveling. The deal emphasizes the importance of maintaining community engagement and enhancing the value of existing assets for the benefit of MSPs.Karl Palachuk discussed the filters he applied when selecting a buyer, prioritizing compatibility and the potential for growth within the community. He expressed a desire for the new ownership to actively utilize the acquired assets to foster a thriving environment rather than allowing them to stagnate. The conversation highlighted the importance of community in the tech industry, where collaboration and shared knowledge have historically driven success.In addition to the acquisition, the episode touched on the evolving role of AI in the MSP sector. Palachuk noted that while AI is set to enhance productivity, it will also necessitate a shift in the skills required for technicians and service providers. The discussion underscored the need for MSPs to adapt to these changes, as the industry faces a wave of mergers and acquisitions that could reshape service delivery models.For MSPs and IT service leaders, the implications of these developments are clear. The acquisition represents an opportunity to access a wealth of resources and knowledge while navigating the challenges posed by AI and market consolidation. Engaging with the Small Biz Thoughts community can provide valuable insights and support as MSPs work to enhance their service offerings and adapt to the changing landscape of technology and client needs.

Intel has launched its Core Ultra Series 3 central processing units, utilizing its new 18A process technology, which aims to enhance performance and efficiency across various applications, including gaming and professional workloads. This development is part of Intel's strategy to regain competitiveness in the CPU market, which has faced increasing pressure from rivals. The new processors promise improved performance per watt compared to previous generations, with further specifications expected soon. This advancement in chip technology is significant for Managed Service Providers (MSPs) as it enables the feasibility of edge AI applications, which require careful consideration of workload clarity and governance.Lenovo introduced Cura, an AI assistant designed to operate seamlessly across its computers and Motorola smartphones, emphasizing on-device processing and user privacy. This system-level AI aims to adapt to user habits over time, assisting with tasks such as email drafting and meeting summarization. However, the episode highlights a concerning trend where many users do not fully utilize existing tools, as evidenced by Microsoft's Copilot user statistics. The discussion underscores the importance of governance in AI deployment, as successful enterprise AI implementations, like those from Siemens, demonstrate that explicit authority and responsibility are crucial for effective outcomes.The episode also addresses the ongoing hype surrounding robotics and automation, noting that while advancements are being made, the reality remains that specialized robots are more practical than general-purpose ones. Companies are focusing on single-purpose robots, which contrasts with the expectation of multifunctional robots. The discussion emphasizes that automation in IT should follow a similar path, advocating for narrow automations with explicit authority to avoid misunderstandings and failures that could lead to accountability issues for MSPs.For MSPs and IT service leaders, the key takeaway is the necessity of redefining governance and responsibility in the face of advancing automation and AI technologies. As systems of action become more prevalent, the shift from traditional dashboards to autonomous decision-making systems requires MSPs to update their contracts and governance models accordingly. The opportunity lies not in simply adopting new technologies but in understanding where automation should be limited and ensuring that accountability is clearly defined to mitigate risks associated with automated systems. Three things to know today 00:00 Intel, Lenovo, and Siemens Signal AI Acceleration, Not Automatic Value, for IT Services06:02 CES 2026 Reveals Why Specialized Robotics and Disciplined Automation Deliver ROI Faster Than General AI09:34 Agentic AI, Action-First Platforms, and the End of Forgiving IT Systems Put New Accountability on MSPs This is the Business of Tech.     Supported by: 

Google has introduced an AI-powered inbox view for Gmail, designed to enhance user experience by transforming the traditional email interface into a personalized platform that includes to-do items and topic summaries. This feature, currently available to trusted testers in the U.S. for consumer Gmail accounts, aims to help users manage their emails more effectively. However, concerns have been raised about the potential for users to feel overwhelmed by excessive to-do suggestions, and Google has stated that users can opt out of these AI features. The company also reassured users that their Gmail content is not utilized for training AI models.OpenAI has launched ChatGPT Health, a tool that allows users to ask health-related questions in a secure environment while connecting their medical records and wellness apps. Although the tool is not intended for diagnosis or treatment, it raises significant concerns regarding safety and privacy, particularly in sensitive areas like mental health. OpenAI has collaborated with over 260 physicians to refine the model, but the lack of full compliance with the Health Insurance Portability and Accountability Act (HIPAA) has led to calls for caution, especially for users with health anxiety. The implications of these tools extend beyond user convenience, as they redefine the nature of work and authority in digital environments.The episode also discusses the growing backlash against AI infrastructure, particularly in local communities where data centers are being proposed. Reports indicate that opposition is rising across the political spectrum, with residents voicing concerns about the environmental and economic impacts of these developments. Additionally, polling data shows that 80% of American adults believe the government should regulate AI, reflecting a significant political opportunity for the Democratic Party. This sentiment is prompting leaders to adopt more vocal stances against AI, as many voters feel threatened by its rapid advancement.For Managed Service Providers (MSPs) and IT service leaders, these developments underscore the importance of understanding the evolving regulatory landscape surrounding AI technologies. As states implement new laws addressing AI safety and consumer rights, MSPs must navigate the complexities of compliance and governance. The episode highlights the necessity for providers to establish clear boundaries regarding AI's influence in client environments, ensuring accountability and minimizing liability risks. As AI continues to integrate into various aspects of technology, the need for informed decision-making and proactive engagement with regulatory changes becomes increasingly critical. Four things to know today 00:00 Google and OpenAI Recast AI as an Authority Layer Over Email and Health Data05:03 From Data Centers to Regulation, AI Expansion Encounters Political and Community Limits08:18 AI, Privacy, and Liability Converge as States Fill the Regulatory Vacuum Left by Washington14:07 Dell Says Consumers Aren't Buying PCs for AI Features, Despite NPU Push This is the Business of Tech.     Supported by: 

Microsoft has announced significant changes to its Teams platform, set to take effect on January 12, 2026. The platform will automatically enhance messaging security by blocking risky files and scanning shared links for potential phishing threats. This proactive measure aims to protect organizations, particularly smaller ones without dedicated security teams, from increasingly sophisticated cyber threats. IT administrators will have the opportunity to review and adjust these settings prior to implementation, ensuring a smoother transition to the new security measures.In addition to the Teams update, Microsoft has decided to retract its previously announced limit on bulk email recipients for Exchange Online, following customer feedback indicating that such restrictions would create operational challenges. The company will maintain existing limits while seeking less disruptive solutions to enhance email security. Furthermore, Microsoft has acquired the startup Osmos to bolster its Microsoft Fabric platform with autonomous data engineering capabilities, aiming to automate data preparation and reduce the manual workload for IT teams.The episode also highlights the rapid growth of Ninja One, which reported a 70% year-over-year increase in annual recurring revenue, surpassing $500 million. This growth positions Ninja One as a strong competitor in the remote monitoring and management market, particularly as managed service providers (MSPs) seek to consolidate tools to improve operational efficiency. The discussion emphasizes the importance of accountability and risk management as MSPs navigate the complexities of tool consolidation and automation.For MSPs and IT service leaders, these developments underscore the need for clear communication and governance in the face of increasing automation and vendor-driven changes. As Microsoft centralizes control over security and data management, MSPs must adapt by managing client expectations and pricing for the support burden that comes with these automated solutions. The evolving landscape necessitates a proactive approach to risk management, ensuring that MSPs are prepared to address client concerns and operational challenges effectively. Four things to know today 00:00 CompTIA Signals Confidence for 2026 as NinjaOne's Growth Highlights MSP Push to Simplify Operations05:12 Microsoft Tightens Defaults and Expands Automation Across Teams, Exchange, and Fabric09:22 Dell Reverses Course on Laptop Branding, Reintroducing XPS to Reduce Confusion and Reset Its AI PC Strategy11:53 Artificial Analysis Overhauls AI Benchmarks to Focus on Real-World Work, Lowering Scores and Raising Enterprise Expectations This is the Business of Tech.     Supported by:  https://timezest.com/mspradio/https://scalepad.com/dave/

Artificial intelligence adoption is accelerating without formal ownership as employees, customers, and patients integrate AI tools into daily decisions. Surveys from Gallup show 45% of U.S. employees use AI at work at least occasionally, while research cited by OpenAI indicates roughly 60% of American adults recently used AI for health-related questions. Zoho and Arion Research report that 41% of organizations have strengthened privacy measures after adopting AI, reflecting growing concern about data exposure and accountability. For MSPs, the shift places liability closer to the systems being used rather than the vendors supplying them.Trust in digital media is also eroding as AI-generated content becomes harder to distinguish from authentic material. Instagram CEO Adam Mosseri states that assuming photos or videos reflect real events is no longer reliable and suggests verification at the point of capture rather than labeling generated content. This approach reframes trust as a technical system rather than a social assumption. For IT providers, the issue extends beyond social platforms to security footage, compliance evidence, training data, and any asset where authenticity must be demonstrated.At the same time, automation and AI training are converging on the same constraint: expert judgment. HireArt's 2025 AI Trainer Compensation Report shows subject-matter experts earning $60 to more than $180 per hour, compared with under $20 for generalist data labelers, reflecting the cost of errors in regulated or technical fields. Kaseya's 2025 EMEA MSP Benchmark Report finds that while nearly 75% of MSPs expect revenue growth, 45% face staffing and skills shortages, increasing reliance on automation built on accurate data and curated exceptions.Major vendors are embedding judgment directly into platforms. ServiceNow's planned $7.75 billion acquisition of Armis expands asset classification and risk scoring within workflows. Freshworks' acquisition of FireHydrant integrates AI-driven incident management into ITSM. Google Cloud's revamped Partner Network shifts incentives toward outcome-based tiers beginning in 2026. For MSPs and IT service leaders, these moves concentrate responsibility around interpretation, governance, and accountability, even as tools increasingly define risk and success.Four things to know today00:00 Surveys Show AI Adoption Is Happening Without Ownership as Employees, Customers, and Patients Lead Usage04:50 Instagram's CEO Says Trust Is No Longer Assumed as AI Forces Proof-of-Reality Models07:22 AI and MSP Automation Are Converging on the Same Bottleneck: Expert Judgment09:52 Vendors Shift From Tools to Judgement as ServiceNow, Freshworks, and Google Cloud Embed Risk, Incidents, and Outcomes This is the Business of Tech.    Supported by:  https://scalepad.com/dave/

The U.S. economy demonstrated robust growth in the third quarter of 2025, with a gross domestic product (GDP) increase of 4.3%, according to the Commerce Department. This growth occurred despite consumer concerns and uncertainties related to tariffs, with military spending and corporate profits contributing significantly. However, the technology sector experienced substantial layoffs, with 1.1 million jobs cut in 2025, of which only 55,000 were attributed to artificial intelligence (AI). The majority of job losses stemmed from corporate restructuring and economic conditions rather than direct displacement by AI, leading to hiring freezes, particularly for entry-level positions.Small and medium-sized businesses (SMBs) are currently facing challenges in attracting talent, with over 70% reporting difficulties in finding qualified candidates due to competition from larger firms. The National Federation of Independent Business noted that nearly half of all small businesses are struggling to fill open positions, which is stalling growth and reducing productivity. Despite a slight increase in small business optimism, driven by expectations of higher sales, many owners cite labor quality as their top concern. Additionally, 64% of SMBs are experiencing supply chain disruptions, complicating their operations.The episode also discusses the ongoing chip and memory shortages, which are expected to persist into 2027, leading to rising prices for consumer electronics. Major memory manufacturers are prioritizing supply for AI companies, impacting pricing across various sectors. Furthermore, the shift towards outcome-based pricing models in software is highlighted, where companies may pay based on actual results delivered, potentially complicating the relationship between service providers and clients if expectations are not clearly defined.For Managed Service Providers (MSPs) and IT service leaders, these developments underscore the importance of clarity and realistic expectations in service delivery. As operational fragility becomes more pronounced amid rising costs and labor shortages, MSPs must reframe their roles from implementers to risk managers. This shift is crucial to avoid margin erosion and contract disputes, ensuring that they are not unduly burdened by decisions made outside their control. The evolving economic landscape necessitates a proactive approach to pricing and service design, particularly as automation and AI continue to reshape the industry. Four things to know today 00:00 Strong GDP Growth, Persistent Layoffs, and Weak AI Returns Expose Hidden Risk for SMB Operations07:04 AI Is Driving Hardware Shortages, Cloud Growth, and Outcome-Based Pricing—Raising Cost Risk for MSPs11:10 MSP Expense Volatility, AI-Driven Service Shifts, and Labor Shortages Are Colliding on Pricing Strategy15:04-- MSP Radio Expands Beyond News With Acquisition of Two MSP Education Brands This is the Business of Tech.     Supported by:  https://cometbackup.com/?utm_source=mspradio&utm_medium=podcast&utm_campaign=sponsorship

Managed Service Providers (MSPs) are encouraged to shift their focus from traditional infrastructure management to becoming Managed Intelligence Providers (MIPs), emphasizing the integration of artificial intelligence (AI) into their service offerings. Chance Weaver, VP of AI Adoption at PAX 8, highlights the necessity for MSPs to engage in deeper conversations with clients about their business processes rather than merely discussing technology tools. This approach aims to identify specific business challenges that can be addressed through tailored technological solutions, including AI, automation, and business intelligence.Weaver notes that while many MSPs have historically excelled in maintaining infrastructure, they often lack a comprehensive understanding of their clients' workflows and business needs. The transition to MIPs involves not only understanding business processes but also ensuring data readiness, which is critical for effective AI implementation. Instead of undertaking extensive data cleanup projects upfront, MSPs should focus on the data relevant to specific business processes, thereby demonstrating immediate ROI and building trust with clients.The episode also discusses the importance of outcome-driven services and the potential for MSPs to monetize AI solutions effectively. Weaver shares insights from his interviews with over 650 partners in the PAX 8 ecosystem, revealing that only a small percentage are currently generating revenue from AI-related services. Successful partners are leveraging their existing relationships and expertise to create value for clients by aligning pricing models with measurable outcomes, thus facilitating a smoother transition to AI adoption.For MSPs and IT service leaders, the key takeaway is the urgency to start conversations about AI with clients, even if they are not yet fully equipped to implement these solutions. By positioning themselves as knowledgeable partners in the AI transformation journey, MSPs can capitalize on emerging opportunities and enhance their service offerings. The discussion emphasizes that while some providers may choose to adopt a fast-follower strategy, those who proactively engage with clients about AI will likely gain a competitive advantage in the evolving market landscape.

The conversation centers on the evolving role of automation in Managed Service Providers (MSPs), particularly the implementation of human-in-the-loop AI systems. Mathieu Tougas, CEO of Mizo Technologies, emphasizes that while automation can significantly enhance efficiency—reporting a 26% increase in technician capacity and a 30% reduction in escalations—maintaining human oversight is crucial for ensuring service quality. This approach allows technicians to delegate low-value tasks to AI agents while focusing on higher-value customer interactions, thereby preserving the essential human element in service delivery.Tougas outlines the methodology behind these efficiency gains, which involves analyzing ticket resolution times before and after deploying Mizo's solutions. The data indicates that technicians can handle more tickets in less time, which can lead to reduced staffing needs without compromising service quality. He also addresses common misconceptions among MSPs regarding AI, particularly the fear of losing control over service quality when delegating tasks to automated systems. Instead, he argues that AI should be viewed as a tool to enhance technician capabilities rather than replace them.The discussion also touches on the importance of integrating AI tools into existing workflows without causing disruption. Mizo Technologies employs a two-week fine-tuning period to adapt its systems to the specific processes of each MSP, ensuring a smoother transition and minimizing the need for extensive retraining. This gradual approach allows organizations to build trust in the AI systems while optimizing their service desk operations.For MSPs and IT service leaders, the key takeaway is the necessity of balancing automation with human oversight to maintain service quality. As the industry moves towards greater automation, understanding the right contexts for AI deployment and ensuring robust processes are in place will be essential for maximizing efficiency and customer satisfaction. Embracing AI thoughtfully can lead to significant operational improvements while still addressing the critical need for human interaction in service delivery.

Robbie Bach, former president of Microsoft's Entertainment and Devices Division, discusses his transition from technology executive to author of political techno-thrillers, focusing on his latest book, The Blockchain Syndicate. The narrative explores themes of digital identity, misinformation, and the vulnerabilities of modern institutions, emphasizing that technology itself is neutral; it can be used for both beneficial and harmful purposes. Bach highlights the character of Tamika Smith, a military veteran, as a lens through which to examine leadership in a complex landscape of technology and public trust.Bach elaborates on the psychological and technical aspects of his story, particularly the implications of digital identity and authenticity. He notes that the plot involves a blackmail scenario linked to a character presumed dead, raising questions about the authenticity of digital communications. This reflects broader concerns about cybersecurity, where vulnerabilities are often exploited rather than created anew. Bach emphasizes the importance of grounding his narrative in real-world technology and experiences, blending factual research with creative storytelling.The conversation also touches on the governance of technology, critiquing current regulatory approaches that tend to be reactive rather than proactive. Bach argues that effective governance requires forward-thinking leadership capable of anticipating future challenges, particularly in areas like AI and blockchain. He stresses the need for businesses, including small and medium-sized enterprises, to engage with these issues beyond mere compliance, advocating for a broader sense of responsibility that includes stakeholder value.For Managed Service Providers (MSPs) and IT service leaders, Bach's insights underscore the critical role they play in navigating the complexities of technology governance and cybersecurity. By understanding the vulnerabilities inherent in digital systems and advocating for responsible practices, MSPs can better support their clients in mitigating risks associated with misinformation and identity fraud. The episode serves as a reminder of the importance of ethical considerations in technology deployment and the need for proactive engagement in shaping a secure digital future.

Laith Palhawan, CEO and founder of OrangeCrew, has successfully transitioned his managed IT services company into the public sector by becoming GSA certified, allowing him to provide IT services to government agencies. This shift has required a deep understanding of compliance and security requirements that differ significantly from those in the private sector. In the public sector, clients expect adherence to strict standards and predefined solutions, which contrasts with the more flexible and responsive approach typically found in private business engagements.Pahlawan's experience highlights the challenges of profitability in the managed services landscape, particularly when working with government contracts that often yield lower margins of 10-15%. He emphasizes the importance of strategic partnerships and effective business analysis to maintain sustainable margins. By utilizing tools like Power BI and Kaseya, OrangeCrew can track time and resources spent on each client, allowing for informed decisions about which clients to prioritize and which to decline based on profitability and demand.The episode also delves into OrangeCrew's innovative use of artificial intelligence (AI) to enhance internal operations and client services. Pahlawan has developed a centralized database that integrates various data sources, enabling the use of AI to analyze client interactions and identify potential issues proactively. This system not only improves operational efficiency but also positions OrangeCrew as a forward-thinking MSP capable of offering advanced solutions to clients, particularly in the realm of AI.For MSPs and IT service leaders, the insights shared by Pahlawan underscore the necessity of adapting to evolving client needs, particularly regarding compliance and AI integration. As businesses increasingly rely on AI for operational efficiency, MSPs must enhance their understanding of data management and automation to remain competitive. The conversation serves as a reminder that embracing new technologies and strategic partnerships can lead to sustainable growth and improved service delivery in a challenging market.

The episode reviews the outcomes of predictions made for 2025, highlighting the evolving role of automation and AI in Managed Service Providers (MSPs). Key findings indicate that while generative AI has improved data accessibility, it has not fully resolved existing reporting issues related to data quality and governance. Additionally, the anticipated widespread adoption of autonomous IT systems among small and medium-sized businesses (SMBs) has not materialized, as many still rely on traditional remote monitoring and management (RMM) tools. The episode emphasizes that AI governance and advisory services have become central to modern MSP offerings.Further analysis reveals that while AI-driven legal services gained traction, MSPs have not widely adopted these as packaged offerings. Instead, they have focused on AI compliance and regulatory advisory services. The discussion also touches on the mixed results of fraud prevention becoming a standard service, with significant growth in some sectors but uneven adoption across the board. The episode concludes with a scorecard of predictions, noting a few clear successes in AI governance and readiness consulting, while highlighting a notable miss regarding decentralized MSP models.Looking ahead to 2026, the episode presents several predictions that reflect the increasing importance of automation in IT services. It suggests that MSPs whose revenue models still depend heavily on human labor will face pressure to adapt, as automation becomes the primary driver of service scalability. The discussion also raises concerns about accountability in automation, predicting that individuals may be held responsible for failures in automated systems, emphasizing the need for robust governance frameworks.The implications for MSPs and IT service leaders are significant. As automation becomes the production system for IT services, providers must focus on governance, risk management, and advisory roles to differentiate themselves in a competitive landscape. The episode underscores the necessity for MSPs to evolve their service offerings and business models to align with these trends, ensuring they remain relevant and capable of delivering value in an increasingly automated environment.

Matthew Nikravesh, CEO and co-founder of Solarus Technologies, discussed the evolution of managed services in response to the increasing demand for cloud solutions, particularly Azure, during the pandemic. Solaris Technologies, founded in 2012, focuses on providing managed services primarily to nonprofits and small to mid-sized businesses. The company has implemented an automated cloud management platform in partnership with Nerdio, which has enabled them to efficiently deploy Azure Virtual Desktops and streamline support processes for their engineers.The conversation highlighted the importance of automation in reducing operational inefficiencies. Solarus Technologies has integrated automation tools, such as PIA, to manage user onboarding and ticket dispatching, achieving a 35% automation rate for incoming tickets. However, Nikravesh acknowledged that the journey toward effective automation is iterative, requiring ongoing adjustments to improve performance. The company has also seen significant benefits from automating user onboarding processes, which have reduced the back-and-forth communication typically associated with new hires.Nikravesh also addressed the challenges faced by nonprofits in adopting AI technologies, noting that many organizations struggle with data readiness and security. To assist clients in overcoming these hurdles, Solarus Technologies collaborates with an AI consultant to conduct readiness assessments, ensuring that clients can effectively leverage AI tools when they are prepared. This proactive approach aims to help nonprofits focus on their missions rather than IT concerns.For MSPs and IT service leaders, the discussion underscores the necessity of evaluating tool stacks and vendor partnerships strategically. Nikravesh emphasized the importance of smart revenue growth, advising MSPs to assess their client relationships and eliminate those that do not contribute positively to their bottom line. As the industry continues to evolve, the integration of cloud services and AI will remain critical topics for MSPs, necessitating a focus on delivering value while managing operational complexities.

The episode features a discussion on the current state of profitability and revenue growth within the Managed Service Provider (MSP) industry, highlighting that 2024 marks the fifth consecutive year of strong profitability. Despite this positive trend, revenue growth has cooled compared to the rapid increases seen from 2021 to 2023, with organic revenue growth peaking at 25% before declining to around 10.6%. This shift has led to concerns that MSPs may be under pressure; however, profitability metrics indicate that the industry remains healthy, with best-in-class firms achieving significantly higher earnings than their median peers.Peter Kujawa of Service Leadership elaborates on the factors influencing these trends, noting that while profitability has improved, wage inflation has impacted service gross margins. The data reveals that the best-in-class MSPs maintain a W2 ratio that allows them to generate more revenue per employee compared to their median and bottom quartile counterparts. This efficiency is crucial as the industry matures, with many MSPs now facing the challenge of adapting to a more competitive landscape where automation and AI are becoming increasingly important.The conversation also touches on the evolving compensation structures within MSPs, emphasizing the importance of incentive pay over base salaries. Best-in-class firms tend to offer higher variable pay percentages, which are tied to performance metrics that employees can control, thereby motivating better outcomes. This approach contrasts with the bottom quartile, where compensation structures may not align as effectively with performance, potentially leading to complacency.For MSPs and IT service leaders, the key takeaway is the necessity of embracing operational efficiency and automation to remain competitive. As the market continues to mature, those who invest in automation and refine their compensation strategies will likely see improved profitability and growth. The episode underscores the importance of understanding market dynamics and leveraging data-driven insights to make informed business decisions.

Conflicting jobs data indicates a complex economic landscape for IT service providers, as the unemployment rate in the tech sector has risen to 4% with a loss of 134,000 jobs between October and November 2025. Despite a drop in the overall unemployment rate to 4.2% and a projected growth of managed services contributing $608 billion to the B2B technology sector, the mixed signals from economic indicators complicate decision-making for the Federal Reserve and raise concerns about consumer spending. Analysts emphasize that the current job losses reflect a shift in responsibility from internal roles to external managed service providers (MSPs), which may not alleviate underlying risks.The National Institute of Standards and Technology (NIST) has released a draft profile addressing cybersecurity challenges posed by artificial intelligence (AI), highlighting the need for organizations to manage AI-related security risks effectively. This profile outlines how AI can enhance cybersecurity defenses while also detailing the responsibilities that come with its deployment. Recent assessments reveal that while some AI models perform better in security contexts, the lack of clarity around accountability when AI systems make decisions remains a significant concern for MSPs.Private equity activity is accelerating in the managed services sector, exemplified by Broadwing Capital's acquisition of CloudScale365, which aims to create a platform addressing gaps in the fragmented IT-managed services market. This consolidation trend raises questions for MSPs about operational norms and the potential loss of control over their business models. As platforms seek to standardize pricing and decision-making processes, MSPs must consider how these changes will affect their service delivery and customer relationships.For MSPs and IT service leaders, the evolving landscape underscores the importance of understanding where risk is shifting and how to price and govern accordingly. The retreat from AGI hype and the focus on practical AI applications signal a need for clarity in decision-making processes, particularly as automation becomes more prevalent. MSPs that can articulate the limitations of their AI systems and establish clear accountability frameworks will be better positioned to navigate the complexities of the current market. Four things to know today00:00 As Jobs Data Conflicts and Tech Employment Slips, Managed Services Absorb Risk and Responsibility05:46 NIST's AI Security Framework Meets Reality as Model Safety Gaps Expose Accountability Risks08:54 Broadwing Launches MSP Platform to Standardize Scale, Signaling Growing PE Pressure on MSP Operations11:03 AI Rebrands Itself as Open Source Expands, Automation Scales, and Accountability Gets Murkier This is the Business of Tech.    Supported by:  https://saasalerts.com/mspradio/ 

Thrive, a global technology outsourcing provider, is pursuing a $1 billion market position by the end of 2029, following significant revenue growth and 27 acquisitions since its inception. The company is focusing on enhancing its service offerings, particularly in managed artificial intelligence services, through a $100 million investment in its next-gen 3.0 platform. This shift raises critical questions for Managed Service Providers (MSPs) regarding who controls decision-making in IT operations as AI begins to play a more active role in execution rather than merely advisory functions. The integration of AI into managed services could lead to a concentration of power upstream, potentially undermining the authority and accountability of MSPs.Recent data on IT leadership diversity reveals that representation has stagnated, with 83% of IT leaders being white and over 78% male. This lack of diversity in leadership roles can create strategic blind spots, particularly as technology evolves rapidly. The report indicates that while there has been some improvement in gender representation among larger companies, racial diversity remains largely unchanged. This stability in leadership demographics may limit the perspectives necessary for effective technology governance, especially in a landscape increasingly influenced by AI and automation.Additional developments include the launch of the HiPori Partner Program, which aims to enhance secure mobile access for resellers and MSPs, and TD Cinex's AI Game Plan Workshop designed to assist partners in implementing AI solutions for their customers. These initiatives reflect a growing trend among technology providers to standardize outcomes and streamline processes, which may inadvertently reduce the differentiation and authority of MSPs as they adopt these frameworks.For MSPs and IT service leaders, the implications of these developments are significant. As AI-driven execution becomes more prevalent, MSPs must redefine their responsibility and authority to avoid unpriced liabilities. The current landscape suggests that those who can clearly articulate control and accountability in automated environments will have a competitive advantage. Ignoring these shifts could lead to operational risks and customer dissatisfaction, emphasizing the need for MSPs to adapt their strategies in response to the evolving technological landscape. Three things to know today 00:00 Thrive's $1B Ambition, OpenAI Investment, and AI Automation Push Highlight a Shift in Who Controls “Good IT”05:26 Q4 2025 IT Leadership Data Confirms a Five-Year Stall in Diversity Despite Rapid Technology Change10:56 Hypori, TD Synnex, and N-able Moves Show MSPs Trading Local Control for Centralized AI and Endpoint Frameworks This is the Business of Tech.     Supported by:  ingocni.com/tech10   PROMO CODE: tech10https://cometbackup.com/?utm_source=mspradio&utm_medium=podcast&utm_campaign=sponsorship

Ransomware payments may be falling, but attackers are not retreating—they are shifting their focus upstream to hypervisors, where a single compromise can undo years of layered security investment. This change fundamentally alters the risk equation for MSPs whose architectures emphasize shared infrastructure and efficiency. Lower payments reflect reduced victim capacity, not reduced attacker effectiveness, forcing adversaries to increase the impact of each successful breach. Recovery speed, architectural resilience, and catastrophic-failure planning now matter more than detection narratives.At the same time, regulators are tightening expectations around AI safety while modernization funding stalls. State attorneys general are warning major AI vendors about harmful outcomes involving minors, even as Congress allows critical federal IT modernization funding to lapse. This leaves implementers operating in environments where AI is treated as production infrastructure but lacks the controls, funding, and policy clarity required to manage risk. In these conditions, responsibility concentrates on service providers without corresponding authority.Concerns over AI transparency deepen as OpenAI's shift to a for-profit model triggers internal resignations and allegations of suppressed economic impact research. When AI vendors control both platforms and narratives, ecosystem participants lose access to inconvenient truths about displacement, quality degradation, and operational disruption. MSPs experience these impacts directly, often after automation decisions have already reshaped staffing, workflows, and customer expectations.Security vendors are responding by introducing AI governance and control-layer tools, but carefully stopping short of owning outcomes. From AI detection and response to bundled copilots, zero-trust packages, and expanded vulnerability scanning, the message is consistency and experimentation—not accountability. As AI systems move from passive tools to active decision-makers, governance becomes an ongoing service rather than a product feature. MSPs that fail to price, document, and limit decision risk will inherit liabilities they cannot automate away. Four things to know today 00:00 Ransomware Payments Fall 33% as Attacks Persist and Shift Toward Hypervisors04:33 State Attorneys General Warn OpenAI, Microsoft, and Apple on AI Child Safety as Federal IT Modernization Funding Stalls08:24 Former OpenAI Employees Raise Transparency Concerns as Economic Impact Research Is Curtailed10:51 CrowdStrike, Microsoft, Vectra, WatchGuard, and LevelBlue Push AI Security Controls Without Owning Outcomes This is the Business of Tech.    Supported by:  https://mailprotector.com/mspradio/

Analyst firm Forrester has projected that AI-native cloud solutions could generate $20 billion in revenue by 2026, significantly reshaping enterprise IT operations. However, the transition to these solutions raises concerns about governance gaps that could lead to outages. Organizations are increasingly redesigning their systems across various sectors, including education and infrastructure financing, to manage the risks associated with AI. This shift is underscored by a recent Gallup poll indicating that 45% of U.S. employees are using AI at work, reflecting a growing reliance on AI tools for operational efficiency.The term "SLOP" has been designated as Merriam-Webster's 2025 Word of the Year, highlighting the cultural implications of AI's integration into daily communication. This term encapsulates the challenges of quality control in AI outputs, as the rapid scaling of AI tools often outpaces human judgment. Managed Service Providers (MSPs) are urged to focus on helping clients discern which AI outputs are reliable and which require scrutiny, emphasizing the need for quality control over mere automation.In the education sector, a notable trend is the adoption of oral exams to assess student learning, ensuring evaluations reflect genuine understanding rather than reliance on AI-generated content. Additionally, major tech companies like Microsoft and Google are adopting innovative financing strategies, such as short-term leasing agreements for computing power, to mitigate financial risks associated with AI infrastructure investments. These strategies allow companies to scale their AI capabilities while maintaining flexibility in their financial commitments.For MSPs and IT service leaders, the evolving landscape of AI presents both challenges and opportunities. The emphasis on governance and quality control in AI tools indicates a shift in how organizations will approach AI adoption, necessitating new validation steps and risk models. MSPs can leverage this moment by providing guidance on AI evaluation and compliance, ensuring that clients can navigate the complexities of AI integration while minimizing potential liabilities. Four things to know today 00:00 AI Adoption Surges as Forrester, Gallup, and Merriam-Webster Signal a Quality Problem04:40 -Education and Big Tech Respond to AI by Reworking Assessment and Risk Models07:13 OMB Uses Procurement Power to Set Federal Standards for Truthful, Unbiased AI Tools09:11 Disney Sets AI Rules:  This is the Business of Tech.    Supported by:  https://cometbackup.com/?utm_source=mspradio&utm_medium=podcast&utm_campaign=sponsorship

Global IT spending is projected to reach its highest level in 30 years, driven primarily by investments in artificial intelligence (AI) and cloud services. According to a report from the International Data Corporation, spending on hardware, software, and IT services is expected to rise by 14%, marking the fastest growth rate since 1996. However, the benefits of this spending surge are not being realized by Managed Service Providers (MSPs), as hyperscalers dominate the market by building extensive AI infrastructure and integrated platforms. This shift in control raises questions about the future value proposition for MSPs, who may find themselves increasingly marginalized.Small businesses are experiencing hiring challenges despite a reported increase in job growth plans. The National Federation of Independent Business Jobs report indicates that 33% of small business owners have unfilled job openings, with 19% planning to create new jobs in the next three months. However, 56% of these businesses attempted to hire in November, with half citing a lack of suitable candidates. Compounding this issue, federal statistical agencies are facing significant staffing and budget cuts, leading to a decline in the availability of reliable economic data. This erosion of data could hinder small businesses' ability to make informed hiring and investment decisions.In a notable leadership change, Jim Siders has been appointed CEO of Shield Technology Partners, an IT services platform focused on integrating AI with operational expertise. Siders aims to enhance service delivery through AI innovations, positioning Shield as a vital resource for businesses in sectors like construction and healthcare. This move reflects a broader trend of IT services being restructured as AI-driven platforms rather than traditional roll-ups, emphasizing the importance of operational discipline and clean data in leveraging AI effectively.The episode highlights a concerning trend in corporate spending on AI, where companies allocate 93% of their budgets to technology and only 7% to the people who will utilize it. This imbalance can lead to a decline in trust among employees and an increase in the use of unapproved AI tools, complicating compliance and operational efficiency. For MSPs and IT service leaders, the key takeaway is the necessity to shift focus from merely adopting technology to fostering a disciplined approach to AI integration, emphasizing governance, workflow redesign, and clear decision-making boundaries to ensure that clients can navigate the complexities of AI effectively. Four things to know today00:00 Global IT Spending Hits 30-Year High as AI and Cloud Investments Accelerate, IDC Reports05:24 Small Businesses Plan More Hiring but Still Can't Find Qualified Workers, NFIB Reports08:33 Shield Names Former Palantir CIO Jim Siders CEO as It Builds an AI-First IT Services Platform With OpenAI and Thrive11:19 Deloitte: Lopsided AI Spending, Declining Trust, and Shadow AI Signal a Growing Management Failure This is the Business of Tech.     Supported by:  https://saasalerts.com/mspradio/

Scott Alldridge, CEO of IP Services and author of the Visible Ops series, emphasizes the necessity of viewing cybersecurity as a growth driver rather than a cost center. He argues that the increasing sophistication of cyber threats, which now target small businesses, necessitates a shift in perspective. Aldridge highlights that organizations must recognize cybersecurity as essential for survival, framing it as revenue protection and enablement. He cites the example of MGM, which suffered a significant ransomware attack that resulted in over $140 million in losses, underscoring the urgency for businesses to prioritize cybersecurity.Aldridge discusses the importance of measurable indicators to demonstrate improvements in security posture. He advocates for regular vulnerability scanning and penetration testing, moving beyond the outdated practice of annual assessments. He notes that organizations should conduct these tests quarterly or even monthly to adapt to the evolving threat landscape. Metrics such as Mean Time to Detect (MTTD) and Mean Time to Respond (MTTR) are critical for assessing the effectiveness of cybersecurity measures and ensuring timely responses to potential threats.The conversation also touches on the human factor in cybersecurity, emphasizing the need for robust training and awareness programs to mitigate risks associated with employee actions. Aldridge stresses that leadership commitment is crucial for fostering a culture of security within organizations. He advocates for a philosophical approach to cybersecurity, including the adoption of frameworks like Zero Trust, which emphasizes strict access controls and continuous monitoring.For Managed Service Providers (MSPs) and IT leaders, the episode underscores the importance of integrating cybersecurity into business strategy. By framing cybersecurity as a critical component of business continuity and reputation management, MSPs can better communicate its value to clients. The discussion also highlights the need for ongoing education and adaptation to new threats, ensuring that organizations remain resilient in the face of cyber challenges. Viewers can get free e-copy of the book, “Virtual Ops Cybersecurity” by texting SECURE25 to 541-359-1269”

OpenAI has released GPT 5.2, a new model that reportedly outperforms industry professionals across 44 occupations in benchmark tests, completing tasks over 11 times faster and at less than 1% of the cost of expert professionals. This development follows a declaration of urgency from CEO Sam Altman, who highlighted the need to enhance ChatGPT's capabilities in response to competition from Google's Gemini 3. The implications for Managed Service Providers (MSPs) are significant, as the model aims to improve productivity and efficiency in various professional settings, potentially reshaping workflows and service delivery.In a related move, the Walt Disney Company has entered a three-year licensing agreement with OpenAI, investing $1 billion to allow the integration of over 200 characters from its franchises into OpenAI's Sora video generation tool. This partnership is designed to enhance user engagement while respecting creator rights through licensing fees. Concurrently, Disney has filed a cease and desist letter against Google for alleged copyright infringement, claiming that Google has been distributing copyrighted content from its library without authorization. This dual approach of licensing and litigation illustrates the complexities of copyright in the AI era, particularly for smaller companies lacking the enforcement capabilities of larger entities.The episode also discusses the U.S. government's response to AI governance, including an executive order from President Trump aimed at preventing states from enacting regulations that could hinder the AI industry. This order reflects a broader tension within the Republican coalition regarding the potential risks of unregulated AI, such as job displacement. Additionally, a ruling by the Penn Guild against Politico highlights the importance of human oversight in AI applications within journalism, emphasizing that AI cannot replace the accountability inherent in human reporting.For MSPs and IT service leaders, the key takeaway is the necessity of treating AI not merely as a tool but as a process change that requires governance and risk management. As AI technologies become more integrated into workflows, the potential for legal exposure increases if they are deployed without adequate oversight. MSPs that focus on helping clients navigate these complexities and implement robust governance frameworks will be better positioned to provide value and mitigate risks associated with emerging technologies. Three things to know today 00:00 As OpenAI and Google Advance AI Models, Disney's Licensing and Lawsuits Highlight the Real Stakes06:58 Trump Pushes AI Deregulation While Unions and Agencies Enforce Accountability, Exposing a Growing Governance Gap10:29 AI, Quantum, and the Myth of Inevitable Adoption: What CIO Guidance and Microsoft's History Reveal About Real Tech Value This is the Business of Tech.     Supported by:  https://scalepad.com/dave/https://getflexpoint.com/msp-radio/ 

Microsoft's analysis of 37.5 million de-identified conversations from its CoPilot feature indicates that AI assistants are becoming increasingly integrated into daily life, with users frequently seeking health-related advice and engaging in programming discussions during weekdays. However, despite this growing reliance on AI, CoPilot only commands about 3% of the AI chatbot market, significantly overshadowed by ChatGPT's 80% share. Deloitte's recent report highlights persistent barriers to AI adoption, including data privacy concerns and regulatory challenges, revealing that only 25% of organizations have fully integrated AI into their operations as of late 2025.The U.S. Navy's investment of $448 million in an AI system designed to streamline submarine shipbuilding processes exemplifies successful AI implementation. This initiative, which reduces planning times from 160 hours to just 10 minutes, underscores the importance of having the right infrastructure and oversight in place for AI to thrive. The Navy's approach contrasts sharply with the broader industry, where many organizations struggle to align AI technologies with existing systems and compliance requirements.In addition to these developments, Anthropic's donation of its Model Context Protocol (MCP) to the Linux Foundation signals a shift towards standardization in AI interactions. This protocol aims to facilitate communication between AI systems and applications, potentially transforming user experiences. However, the move raises concerns about the concentration of risk associated with shared protocols, as any flaws could impact all users. Furthermore, CISA's launch of a new industry engagement platform aims to enhance collaboration with tech innovators, particularly in light of increasing mandatory cyber incident reporting.For Managed Service Providers (MSPs) and IT service leaders, these developments highlight the critical need for robust governance and infrastructure to support AI technologies. As organizations increasingly turn to AI for operational efficiency, MSPs must focus on establishing the necessary frameworks for data management, compliance, and security. The evolving landscape emphasizes the importance of being proactive in developing policies and workflows that address the complexities of AI integration, ensuring that clients can navigate the challenges and leverage AI effectively.Four things to know today00:00 AI Use Soars but Readiness Lags: Microsoft's Copilot Data, Deloitte's Enterprise Findings, and the Navy's Structured Deployment Show the Gap05:41 Anthropic's MCP Move Signals Shift Toward Unified AI Agent Infrastructure Under Linux Foundation08:01 CISA Expands Industry Engagement as Microsoft Broadens Bug Bounties — Raising the Bar for Security GovernanceAND10:48 Accenture Taps Anthropic as Enterprise AI Partner While Pax8 Adds Google Cloud for ANZ MSPsThis is the Business of Tech.   Supported by:  https://cometbackup.com/?utm_source=mspradio&utm_medium=podcast&utm_campaign=sponsorshiphttps://timezest.com/mspradio/

AI adoption among business leaders is facing significant skepticism, as a recent survey by Workato and Harvard Business Review revealed that only 6% of over 600 tech leaders expressed full confidence in AI agents managing essential processes. Despite this lack of trust, 86% of respondents indicated plans to invest more in AI technology over the next two years. Key challenges hindering widespread adoption include cybersecurity concerns, data quality issues, and the readiness of business processes for automation. This situation highlights a critical gap between the desire for AI integration and the actual trust in its capabilities.Further research published in the journal Science indicates that chatbots can significantly influence users' beliefs and opinions, raising governance concerns. The study, which involved nearly 77,000 adults in the UK, found that the persuasiveness of chatbots is influenced more by their post-training modifications and the density of information provided than by the size of the model. Additionally, an experiment by SAP revealed a bias against AI in consulting, where consultants rated AI-generated work lower than that produced by junior interns, despite both outputs being equally accurate. This suggests that psychological factors, rather than technical limitations, are a primary barrier to AI acceptance.The episode also discusses the introduction of a new location tracking feature in Microsoft Teams, which aims to facilitate collaboration in hybrid work environments but raises privacy concerns. A survey indicated that one-third of companies are using monitoring software, which can negatively impact employee morale. Furthermore, Coalition, a cybersecurity insurer, has begun offering coverage for incidents involving deepfakes, reflecting a shift in the risk landscape as synthetic media becomes more prevalent in cybercrime.For Managed Service Providers (MSPs) and IT service leaders, these developments underscore the importance of focusing on trust, governance, and process design rather than merely implementing AI tools. As younger leaders demand personalized AI solutions, MSPs must adapt to this shift by enhancing their documentation and identifying predictable workflows suitable for automation. The evolving landscape of AI and cybersecurity risks necessitates that MSPs position themselves as trusted advisors, guiding clients through the complexities of technology adoption and risk management. Four things to know today00:00 New Research Reveals AI's Trust Gap: Low Confidence, High Influence, Professional Bias, and Rising Expectations From Younger Leaders05:53 Teams' New Location Tracking Highlights Tension Between Hybrid Coordination and Workplace Surveillance Risks07:57 Deepfake Coverage Enters Cyber Insurance as Insurers Signal Rising Human-Trust Risk for SMBs and MSPs10:17 iFixit's FixBot Highlights the Coming Divide Between Organized MSPs and Those Unready for AI-Driven Support This is the Business of Tech.    Supported by:  https://saasalerts.com/mspradio/ 

AI adoption is facing significant challenges, as evidenced by Microsoft's CoPilot Plus initiative, which accounted for less than 10% of systems shipped in Q3 2024. Despite initial enthusiasm, privacy concerns surrounding features like the recall function have hindered consumer interest, leading Microsoft to pivot towards making all Windows 11 computers AI-capable through cloud-powered features. Concurrently, a decline in workplace AI usage has been reported, with only 11% of employees at large companies utilizing AI for productivity, a decrease from previous months. This trend raises concerns about the effectiveness and integration of AI technologies in business processes.The quality of AI research is also under scrutiny, highlighted by Kevin Zhao's claim of authorship of 113 academic papers in a single year, with many deemed low-quality by experts. The Neura IPS conference received over 21,500 submissions this year, reflecting a pressure to publish that may compromise research integrity. Additionally, a study indicated that while 75% of workers believe AI enhances their work quality, the actual productivity gains are modest, with heavy users reporting significant time savings compared to average users.In the realm of cybersecurity, Gartner has issued a warning against AI browsers, citing major risks such as prompt injection attacks that could expose sensitive data. Google is attempting to enhance security for its Chrome features that automate tasks, but concerns remain about the overall safety of AI agents in browsers. Meanwhile, the shift towards passkeys for secure authentication is gaining momentum, with over 2 billion passkeys in use, demonstrating a preference for phishing-resistant multi-factor authentication.For Managed Service Providers (MSPs) and IT service leaders, these developments underscore the need for a cautious approach to AI technologies and cybersecurity measures. The decline in AI adoption and the emphasis on quality research highlight the importance of integrating AI thoughtfully into existing workflows. Additionally, the urgency of addressing cybersecurity risks associated with AI browsers and the shift towards passkeys presents an opportunity for MSPs to guide clients in adopting secure and effective identity verification methods while avoiding potential pitfalls in emerging technologies. Three things to know today00:00 AI Hits the Reality Wall as Hardware Stalls, Research Quality Slips, Adoption Drops, and Safety Scores Lag07:06 Gartner Issues Stop-Sign on AI Browsers as Google Tightens Agentic Controls and Passkeys Gain Momentum10:55 Market Convergence Accelerates as NinjaOne, Netrio, and Proxmox Push Deeper into MSP Control LayersThis is the Business of Tech.     Supported by:  https://mailprotector.com/mspradio/ 

The managed service provider (MSP) market is projected to grow significantly, with a valuation increase from $337.6 billion in 2024 to $406.74 billion in 2025, driven by the complexity of modern IT infrastructures and rising cybersecurity threats. However, small businesses in the United States are facing severe challenges, shedding jobs at pandemic-level rates, with a net loss of 120,000 jobs reported in November 2025. This trend highlights a growing divide between small and large enterprises, as larger firms adapt more effectively to economic pressures, while small businesses struggle to maintain stability and are increasingly cautious about spending on new initiatives.The impact of artificial intelligence (AI) on the labor market is becoming more pronounced, with a study from the Massachusetts Institute of Technology indicating that AI could replace 11.7% of the U.S. workforce, equating to approximately $1.2 trillion in wages. As companies begin to manage digital employees alongside human workers, the need for effective governance and accountability frameworks becomes critical. Forrester predicts that by 2026, businesses will increasingly integrate AI into their workforce strategies, necessitating a shift in how leadership orchestrates workflows and manages costs.Windows 11 adoption has stalled, with its market share at 53.7% as of November 2025, indicating a growing indifference among consumers and businesses towards operating systems. This trend suggests that the value proposition for MSPs must evolve beyond device management and OS-level work, focusing instead on higher-level services such as identity management, application governance, and automation. As the market shifts, MSPs must adapt to provide solutions that drive business outcomes rather than relying on traditional refresh cycles and OS migrations.For MSPs and IT service leaders, the current landscape presents both challenges and opportunities. The need for clarity in navigating AI complexities and the integration of digital agents into workflows is paramount. Providers that can assist customers in managing these transitions and focus on outcomes rather than tools will position themselves as strategic partners. The future of the MSP market will depend on the ability to evolve and meet the demands of a changing workforce, ensuring that they remain relevant in an increasingly automated environment. Four things to know today 00:00 Small businesses are losing jobs, midmarket firms are reorganizing with AI — and MSPs must shift how they deliver value06:52 The MSP Market Is Growing Fast — but the real opportunity is helping customers manage AI, not devices10:07 Windows 11 Slowdown Shows Customers Don't Care About OS Upgrades — and MSP Value Lives Higher Up the Stack12:08 Slowing ChatGPT Growth and Rising Gemini Use Signal AI Models Becoming Commodities for Business Users This is the Business of Tech.    Supported by:  https://cometbackup.com/?utm_source=mspradio&utm_medium=podcast&utm_campaign=sponsorshiphttps://scalepad.com/dave/

Chris Radich from UiPath discusses the transition from traditional Robotic Process Automation (RPA) to agentic automation, emphasizing its potential to streamline end-to-end business processes. This shift allows organizations to focus on delivering outcomes rather than merely automating tasks. Radich highlights that agentic automation can handle complex processes, such as tax return processing for the IRS, which fundamentally changes how technology is perceived in terms of pricing and service delivery. Managed Service Providers (MSPs) are increasingly looking to UiPath to provide the technological backbone for these comprehensive services.Radich notes that while many organizations recognize the importance of a solid data foundation for successful AI implementation, they often struggle with data silos and a lack of process knowledge. He emphasizes that understanding end-to-end business processes is crucial for achieving effective automation outcomes. The conversation also touches on the need for organizations to revisit their process modeling and data management strategies to fully leverage the capabilities of agentic automation.The episode further explores the types of projects that yield the most success in this new paradigm. Radich advises focusing on document-centric processes, particularly in government sectors, where a significant portion of employee time is spent on document handling. He also points out that organizations should target processes that involve multiple legacy and modern systems, as these scenarios often require orchestration to improve efficiency.For MSPs and IT service leaders, the insights shared by Radich underscore the importance of developing both data and process disciplines to maximize the benefits of automation. As organizations navigate this transition, they must balance short-term implementation efforts with long-term strategic planning. The conversation serves as a reminder that while the technology is advancing rapidly, successful adoption hinges on a solid understanding of existing processes and data management practices.

The integration of advanced AI capabilities in tools like OpenAI Atlas and Microsoft Teams has raised significant security concerns, particularly regarding identity and trust vulnerabilities. Recent findings from LayerX indicate that the Atlas browser has critical vulnerabilities that could allow attackers to inject harmful instructions, while Microsoft Teams has a flaw that enables attackers to bypass Microsoft Defender protections through guest access. These issues highlight the fragility of AI integrations and the need for organizations to implement strict B2B collaboration configurations to mitigate risks associated with external collaborations.The FBI has reported over $262 million in losses due to account takeover fraud, with more than 5,100 complaints filed this year. Cybercriminals are increasingly using social engineering tactics to gain unauthorized access to online banking accounts, often changing passwords to lock victims out and quickly transferring funds to cryptocurrency wallets, complicating recovery efforts. The FBI advises individuals to monitor their financial accounts closely and adopt security measures such as complex passwords and multi-factor authentication to protect against these threats.Managed Service Providers (MSPs) are experiencing a growing demand for integrated security solutions, with a recent survey indicating that 92% of MSPs are seeing business growth driven by interest in AI. However, less than half feel prepared to guide clients in deploying AI tools, particularly autonomous agents. This gap in readiness reflects a significant drop from the previous year's 90% preparedness figure, emphasizing the need for MSPs to focus on data governance and security before implementing AI solutions.The episode underscores the importance of managing identity and data governance as the primary control mechanisms in modern security. MSPs that prioritize these areas will be better positioned to offer secure collaboration and effective automation. As the landscape evolves, providers must choose tools that enhance service delivery without adding unnecessary complexity, ensuring they can meet client demands for security and efficiency in an increasingly AI-driven environment.

Microsoft has announced a price increase for its Office productivity software subscriptions, set to take effect on July 1, 2026. The Microsoft 365 Business Basic subscription will rise from $6 to $7 per user per month, while the Business Standard subscription will increase from $12.50 to $14. Additionally, the Microsoft 365 E3 enterprise subscription will see a 13% hike from $23 to $26. This adjustment follows a period of infrequent price changes since the launch of Office 365 in 2011 and reflects Microsoft's significant investment in its platform, which has introduced over 1,100 new features in the past year. Managed Service Providers (MSPs) should prepare for customer pushback regarding these increases, as clients may direct their frustrations toward their service providers rather than Microsoft.In related developments, several companies have announced product updates aimed at simplifying user experiences. Nerdio has enhanced its enterprise platform to support Azure Virtual Desktop in hybrid environments, while Coro has released version 3.7 of its cybersecurity platform, which features a redesigned interface for improved management. Comcast Business has also upgraded its internet services for small businesses, offering faster speeds and enhanced reliability. These updates indicate a broader trend toward simplifying technology solutions, but they also introduce new governance risks that MSPs must address.The episode also highlights a shift in educational trends, with an increasing number of college students opting for artificial intelligence majors over traditional computer science degrees. This change is driven by concerns over job market prospects for computer science graduates. As universities adapt their curricula to meet the demand for AI skills, MSPs may face challenges in finding candidates who possess the necessary infrastructure knowledge to support business operations effectively.For MSPs and IT service leaders, these developments underscore the importance of proactive communication with clients regarding price changes and the value of technology investments. As tools become more automated and user-friendly, the need for robust governance and security measures becomes paramount. MSPs should focus on ensuring that their clients understand the implications of these changes and the necessity of maintaining foundational IT practices, particularly as the talent pipeline shifts toward AI-focused education. Four Things to Know Today:00:00 Microsoft's 2026 M365 Price Hike Highlights Its Market Power—and Forces MSPs to Reframe Value With Customers03:14 Automation and Simplified Dashboards Dominate New Releases, but Experts Say MSPs Still Shoulder the Governance Burden06:54 AI Majors Surge as Computer Science Enrollment Falls, Reshaping the Tech Talent Pipeline08:55 MCP's Rapid Adoption Outpaces Governance, Creating Opportunity—and Risk—for MSPs Managing AI Integration Sponsored by: https://scalepad.com/dave/https://getflexpoint.com/msp-radio/ 

Amazon Web Services (AWS) has made significant advancements in artificial intelligence (AI) at its reInvent event, introducing a new AI training chip, Trainium 3, which reportedly enhances performance for AI training and inference by up to four times while reducing energy consumption by 40%. Additionally, AWS launched new features in its Agent Core platform, allowing developers to set boundaries for AI agents and log user interactions. The introduction of customizable AI models through the new service, NovaForge, aims to make AI model development more accessible for businesses, addressing the high costs associated with creating models from scratch.Microsoft is facing challenges in selling its AI tools, with reports indicating a slowdown in customer adoption. Despite Microsoft's assertion that it has not lowered sales quotas for AI products, the situation highlights a broader issue: customers are struggling to see the value in AI investments due to messy data, inconsistent processes, and unclear governance. This resistance suggests that while demand for AI exists, readiness among customers remains low, presenting an opportunity for IT service providers to facilitate the transition by offering readiness assessments and governance frameworks.Managed Service Providers (MSPs) are increasingly utilizing AI, with a survey indicating that 80% have adopted AI-powered chatbots, which have improved customer support. However, one-third of MSPs report challenges in implementing AI, including high costs and a lack of internal expertise. As client expectations regarding data security rise, MSPs are deploying AI-driven threat detection solutions. The survey results indicate a commitment to leveraging AI for business transformation, but the complexity of integrating AI into existing workflows remains a significant hurdle.The surge in demand for RAM, driven by the AI industry, has led to a 500% increase in memory prices, creating a shortage of consumer-grade memory. This situation mirrors previous GPU shortages and indicates that high-performance computing components are now subject to the purchasing power of major AI companies. MSPs must prepare for ongoing volatility in hardware costs and communicate these changes to clients, adjusting budgets and refresh cycles accordingly. The evolving landscape emphasizes the need for MSPs to adopt a structured approach to AI, ensuring they are not merely adding tools but effectively transforming their service offerings. Four things to know today00:00 AWS Expands Full-Stack AI Strategy From Chips to Private Regions, Raising Governance and Lock-In Stakes for MSPs07:38 Reports of AI Sales Friction at Microsoft Highlight Market Hesitation and Open the Door for MSP Readiness Services09:28 Survey Shows AI Adoption Surging Among MSPs, Yet Cost, Expertise, and Security Pressures Undercut True Transformation11:51 AI-Driven RAM Shortage Forces MSPs to Reforecast Budgets as Prices Spike 500%This is the Business of Tech.    Supported by:  https://mailprotector.com/mspradio/

AI-integrated tools, such as OpenAI's Atlas and Microsoft Teams, are introducing new trust and identity risks, particularly through vulnerabilities like prompt injections and guest access features. The Atlas browser, launched on October 21, 2025, has been identified as having security flaws that could allow attackers to inject harmful instructions. Similarly, Microsoft Teams has a vulnerability that permits attackers to bypass security protections when users join external tenants as guests. These developments highlight the fragility of AI integrations and the need for robust security measures in collaborative environments.The FBI has reported over $262 million in losses due to account takeover fraud schemes, with more than 5,100 complaints filed this year. Cybercriminals are employing social engineering tactics to gain unauthorized access to online banking and payroll accounts, often locking victims out by changing passwords. The FBI recommends that individuals monitor their financial accounts closely, use complex passwords, and enable multi-factor authentication to mitigate these risks. This trend underscores the importance of managing trust and identity in security practices, as attackers increasingly exploit human vulnerabilities rather than technical flaws.In the managed service provider (MSP) sector, a recent survey by OpenText Cybersecurity revealed that while 92% of MSPs are experiencing growth driven by interest in AI, fewer than half feel prepared to implement AI tools effectively. This marks a significant decline from the previous year's 90% readiness. Additionally, 71% of MSPs reported that their small and medium-sized business clients prefer bundled security solutions, indicating a shift towards integrated offerings that simplify decision-making for clients. The findings suggest that MSPs need to focus on data governance and readiness before deploying AI solutions.For MSPs and IT service leaders, the key takeaway is that modern security is increasingly about managing identity and data governance rather than merely adding more tools. As AI vulnerabilities and account takeover fraud become more prevalent, providers must prioritize establishing secure trust boundaries and effective data management practices. By doing so, MSPs can differentiate themselves in a competitive market, ensuring they are equipped to deliver secure AI solutions and meaningful automation to their clients. Three things to know today00:00 New AI, Collaboration, and Fraud Threats Underscore That Identity—not Infrastructure—is the Real Security Battleground05:15 Survey Shows MSPs Expanding Services Amid AI Interest, Yet True Opportunity Lies in Readiness and Governance07:45 New MSP Integrations, Funding, and AI Platforms Underscore the Shift Toward Identity and Data Governance as the True Control Plane This is the Business of Tech.     Supported by:  https://try.auvik.com/dave-switchhttps://scalepad.com/dave/

OpenAI has declared a "code red" as it faces intensified competition from companies like Google and Anthropic, prompting a shift in focus towards enhancing the capabilities of its ChatGPT platform. CEO Sam Altman has urged staff to prioritize improvements in speed, reliability, and personalization, delaying other initiatives such as advertising. This strategic pivot comes as OpenAI also announced an ownership stake in Thrive Holdings, a company that acquires and transforms service firms, particularly in accounting and IT, with the aim of integrating AI to improve operational efficiency.A recent study by Stebo Systems highlights a significant gap between Chief Information Officers' (CIOs) perceptions of their organizations' AI readiness and the actual state of their data management. While 91% of U.S. business leaders recognize the importance of customer data management, only 31% fully trust their data. The study reveals that 76% of organizations still rely on side spreadsheets to address data issues, indicating a lack of centralized data governance. This fragmentation leads to wasted time and lost revenue, underscoring the need for robust data governance frameworks as organizations aim to adopt AI-driven services.The episode also discusses the implications of surveillance AI, particularly a model developed by Securis Technologies that predicts and prevents crimes among inmates using data from prison phone calls. While the company claims success in disrupting criminal activities, concerns about civil liberties and the ethical use of such data have been raised. This situation serves as a cautionary tale for IT service providers, emphasizing the importance of establishing governance frameworks to mitigate risks associated with AI deployment in business environments.For Managed Service Providers (MSPs) and IT leaders, the key takeaway is the necessity of controlling their own AI strategies. As OpenAI integrates vertically into the service industry, independent MSPs must differentiate themselves by building their own AI capabilities and data governance practices. The episode stresses that without a solid data foundation, AI initiatives are likely to fail, and MSPs should focus on enhancing data quality and governance to ensure successful AI implementations and maintain client trust. Four things to know today 00:00 OpenAI Pauses Ads Amid “Code Red” While Buying Into MSP Rollup, Raising Platform–Competitor Concerns05:16 Leaders Say They're Ready for AI — but Their Data Still Lives in Side Spreadsheets07:49 Securus Call-Monitoring AI Shows How Predictive Surveillance Could Spill Into Workplace Tools10:27 New AI Helpers and Simple M365 Assessments Raise the Bar for Modern IT Providers This is the Business of Tech.    Supported by:  https://getflexpoint.com/msp-radio/https://cometbackup.com/?utm_source=mspradio&utm_medium=podcast&utm_campaign=sponsorship

Small businesses in the U.S. are facing rising costs and job losses, with 70% of owners citing inflation as their primary concern, according to a recent Bank of America study. Despite this, 75% of small business owners remain optimistic about revenue growth in the coming year. However, the disparity in employment trends is stark, as small firms shed 88,000 jobs while larger companies gained 151,000. This economic environment is leading to a reduction in discretionary tech spending, as small businesses prioritize survival and cost control over technology investments.The global tech consulting market is projected to exceed $400 billion in revenue by 2026, driven by a surge in technology upgrades. A report indicates that 84% of buyers plan to upgrade their technology within the next year, with a notable increase in demand for consulting services. However, a significant number of personal computers are delaying upgrades to Windows 11, indicating a gap between modernization goals and actual implementation. This presents an opportunity for IT providers to position Windows 11 migration not merely as an OS upgrade but as essential for achieving desired business outcomes.In the hardware sector, Dell reported record revenues of $27 billion for the quarter ending October 31, 2025, largely attributed to its AI infrastructure business. Conversely, HP announced plans to cut 4,000 to 6,000 jobs as part of a restructuring initiative aimed at enhancing productivity through AI. Both companies are navigating challenges, including a projected memory shortage that could lead to increased prices in the second half of the fiscal year. These developments highlight the shifting dynamics in the tech industry, where AI is reshaping hardware strategies and vendor support is expected to diminish.For Managed Service Providers (MSPs) and IT decision-makers, the current economic landscape necessitates a strategic approach to technology investments. As small businesses tighten their budgets, IT providers must focus on demonstrating the financial impact of their solutions and offering flexible purchasing options. The convergence of rising consulting demand, hardware inflation, and vendor financial repositioning underscores the importance of aligning technology refresh cycles with business outcomes. By proactively addressing these challenges, MSPs can position themselves as essential partners in navigating the complexities of modernization and economic pressure. Four things to know today 00:00 SMB Costs Surge, Hiring Drops, and Confidence Splits—Forcing IT Providers to Tie Tech Directly to Business Value05:19 Everyone Says They Want Digital Transformation, but a Billion PCs Say Otherwise08:29 AI Server Demand Boosts Dell While HP Restructures and Warns of Memory Shortages, Pressuring SMB Refresh Cycles12:52 N-able Takes On More Debt — Here's Why MSPs Should Pay Attention This is the Business of Tech.    Supported by:  https://saasalerts.com/mspradio/

The episode discusses the increasing complexity of endpoint security, driven by the rapid proliferation of devices due to remote work, BYOD policies, and the rise of shadow IT. Data indicates that shadow IT has surged by 59% since remote work became mainstream, with nearly half of cyberattacks linked to these unauthorized applications. Managed Service Providers (MSPs) are facing challenges in managing this expanded attack surface, as traditional security measures often fail to account for the multitude of devices and applications that employees use outside of corporate oversight.Panelists highlight that the lack of visibility and management of these endpoints creates significant blind spots, making organizations vulnerable to attacks. The conversation emphasizes the importance of understanding the various types of endpoints, including IoT devices and SaaS applications, which can often be overlooked. Additionally, the discussion touches on the role of human factors in security, noting that employees frequently bypass official channels to install their own tools, further complicating the security landscape.The episode also addresses the issue of tool sprawl, where MSPs may utilize an excessive number of security tools, leading to alert fatigue and operational inefficiencies. With some organizations reportedly using up to 40 different security solutions, the panelists argue for a more streamlined approach to security management. They suggest that consolidating tools can enhance efficiency and improve response times to incidents, ultimately benefiting both MSPs and their clients.For MSPs and IT service leaders, the key takeaway is the necessity of implementing a layered security strategy that includes comprehensive visibility, effective management of endpoints, and robust employee training. By prioritizing these elements, organizations can better protect themselves against the evolving threat landscape and ensure a more resilient operational framework.

A German court has ruled that OpenAI's training of its GPT-4 and GPT-4.0 models involved copyright infringement, requiring the company to disclose the frequency of usage of specific song lyrics in its training data. This ruling, initiated by GEMA, a German copyright collective, has significant implications for copyright holders, particularly in the music industry, as it may lead to financial benefits for artists from generative AI technologies. The decision contrasts with a recent UK case where StabilityAI successfully defended against similar claims, highlighting the ongoing complexities surrounding AI and intellectual property rights.In related developments, U.S. President Donald Trump has signed an executive order establishing the Genesis Mission, aimed at creating an integrated AI platform utilizing federal scientific datasets to enhance research in fields like biotechnology and quantum science. This initiative seeks to leverage U.S. supercomputers to automate experiment design and reduce discovery timelines. However, the episode suggests that this government initiative may not have immediate implications for MSPs, as it primarily represents a research project rather than a direct tool for business operations.The episode also discusses the rapid advancements in AI models, including Google's Gemini 3 and Anthropic's Opus 4.5, both of which have shown significant improvements in performance metrics. OpenAI plans to retire its GPT-4.0 model in February 2026, encouraging developers to transition to the newer GPT-5.1 series. These developments underscore the fast-paced nature of AI technology, where lifecycle management is becoming increasingly critical for organizations relying on these models.For MSPs and IT service leaders, the implications of these developments are profound. The German court ruling emphasizes the need for transparency in AI data handling practices, which may require MSPs to verify vendor compliance with copyright laws. Additionally, as AI models evolve rapidly, MSPs must adopt AI-agnostic architectures and prepare for potential disruptions caused by model obsolescence. The episode highlights the importance of establishing robust AI policies that promote accountability and ensure that organizations can effectively manage the risks associated with AI deployment. Three things to know today00:00 AI Accountability Tightens as German Court Orders OpenAI Transparency While U.S. Launches Federal AI Research Effort05:03 Model Upgrades Accelerate as Google, Anthropic, Microsoft, and OpenAI Push New Releases While Lifecycle Risks Mount for Users10:43 AI Policy Failures, Market Overheating, and Infrastructure Automation Collide in a Critical Moment for MSPs and Tech Leaders This is the Business of Tech.    Supported by:  https://cometbackup.com/?utm_source=mspradio&utm_medium=podcast&utm_campaign=sponsorship https://timezest.com/mspradio/

The United States, United Kingdom, and Australia have imposed sanctions on the Russian hosting provider MediaLand due to its facilitation of ransomware operations. MediaLand has been linked to various cybercrime activities, including support for groups like LockBit and BlackSuit, and has been identified as a provider for cybercrime marketplaces. The sanctions freeze assets within the U.S., U.K., and Australia and expose individuals engaging in transactions with MediaLand to potential enforcement actions. This shift towards a more offensive cybersecurity strategy, as articulated by National Cyber Director Sean Caroncross, aims to impose costs on adversaries targeting U.S. critical infrastructure, reflecting a recognition that current defensive measures are insufficient.In a related initiative, a coalition of chief security officers and former officials from the Cybersecurity and Infrastructure Security Agency (CISA) has launched a campaign to combat misleading cybersecurity advice, often referred to as "hack lore." This effort emphasizes practical measures such as patching, using strong passwords, and enabling multi-factor authentication, while debunking outdated myths that distract from real threats. The coalition's focus on evidence-based guidance aims to realign cybersecurity practices with effective strategies, which is particularly relevant during high-traffic shopping seasons.Additionally, Vectra AI has introduced the Vectra AI Shield for Microsoft, designed to enhance security across Microsoft environments. This solution addresses visibility gaps in existing Microsoft security tools, particularly concerning identity-based attacks. As identity becomes a focal point for cyber threats, the demand for platforms that simplify security management within the Microsoft ecosystem is increasing. This trend underscores the need for IT providers to adapt their security strategies to include comprehensive identity detection and management.For Managed Service Providers (MSPs) and IT leaders, these developments signal a critical shift in the cybersecurity landscape. The emphasis on government intervention and offensive strategies indicates that MSPs must prepare for increased reporting requirements and a focus on governance rather than solely on tools. By aligning with evidence-based practices and enhancing their understanding of identity security, MSPs can position themselves as trusted advisors, helping clients navigate the evolving cybersecurity landscape effectively. Four things to know today 00:00 Sanctions Hit a Russian Hoster While the U.S. Says It's Time for a More Aggressive Cyber Approach04:58 Security Leaders Call Out “Hacklore” — and Say It's Time to Drop Myths That Don't Stop Attacks07:31 A New Identity Security Tool Hits Microsoft's Ecosystem, and It Shows Where MSSPs Are Struggling Most09:44 NinjaOne Rolls Out MSP NXT — but MSPs Are Asking for Fewer Big Shows, Not More This is the Business of Tech.     Supported by:  https://try.auvik.com/dave-switchhttps://getflexpoint.com/msp-radio/