Business of Tech: Daily 10-Minute IT Services Insights

AI pilot programs are consistently failing to deliver measurable business value, with a primary cause identified as a lack of clearly defined problem statements guiding these initiatives. Ashwin Mehta, an AI strategist with experience leading enterprise transformations, emphasized that many organizations initiate AI pilots without specific objectives, resulting in projects that struggle to demonstrate impact or justify further investment. This lack of focus often leads to stalled initiatives, rather than progress into scalable production environments.The discussion outlined how mid-market and small businesses typically implement AI by acquiring SaaS tools with embedded AI features, rather than building bespoke solutions. Ashwin Mehta observed that while “build versus buy” considerations have shifted as orchestration and database platforms become more accessible, custom development still brings additional risk, skill requirements, and long-term maintenance burden. Even as technical barriers decrease, organizations are cautioned to weigh lifecycle costs and operational support needs before pursuing custom builds.Data management was highlighted as a recurrent challenge, both from an organizational readiness perspective and regarding regulatory risk. Ashwin Mehta underscored the importance of establishing a single source of truth for business-critical data and classifying information by its regulatory sensitivity. Without such data discipline, adoption of AI tools—especially in regulated sectors—becomes a source of uncertainty, with organizations defaulting to restrictive or prohibitive AI policies due to inadequate risk visibility.For MSPs and technology leaders, the operational implications are clear: pilots without rigorous scoping and problem definition are unlikely to progress, and sustainable AI adoption requires purposeful data governance and clear frameworks for project prioritization. With the complexity of AI implementations extending beyond technical issues to include cost volatility, compliance, change management, and skills gaps, providers must approach each initiative with a structured, risk-aware mindset and ensure ongoing oversight as both technology and regulatory landscapes evolve.Sponsored by:  ScalePad  💼 All Our SponsorsSupport the vendors who support the show:👉 https://businessof.tech/sponsors/ 🚀 Join Business of Tech PlusGet exclusive access to investigative reports, vendor analysis, leadership briefings, and more.👉 https://businessof.tech/plus 🎧 Subscribe to the Business of TechWant the show on your favorite podcast app or prefer the written versions of each story?📲 https://www.businessof.tech/subscribe 📰 Story Links & SourcesLooking for the links from today’s stories?Every episode script — with full source links — is posted at:🌐 https://www.businessof.tech 🎙 Want to Be a Guest?Pitch your story or appear on Business of Tech: Daily 10-Minute IT Services Insights:💬 https://www.podmatch.com/hostdetailpreview/businessoftech 🔗 Follow Business of Tech LinkedIn: https://www.linkedin.com/company/28908079YouTube: https://youtube.com/mspradioBluesky: https://bsky.app/profile/businessof.techInstagram: https://www.instagram.com/mspradioTikTok: https://www.tiktok.com/@businessoftechFacebook: https://www.facebook.com/mspradionews Hosted by Simplecast, an AdsWizz company. See pcm.adswizz.com for information about our collection and use of personal data for advertising.

OpenAI’s direct investment and technical involvement with Thrive Holdings, specifically through its partnership with SHIELD Technology Partners, presents a new precedent for AI’s integration into the managed service provider (MSP) space. Unlike prior private equity roll-ups or traditional organic growth, this move involves embedding OpenAI's models and engineers directly within SHIELD’s platform, an entity that has rapidly acquired and integrated nine MSPs and executed two $100 million funding rounds. The arrangement is characterized by efforts to optimize MSP operations through proprietary AI automation, raising immediate questions around operational dependency and the shifting locus of software control.According to Seth Robinson, this approach signals OpenAI’s attempt to navigate both consumer and enterprise technology markets—a dynamic seen previously in mobility—and reflects the broader tension between individual AI use cases and deeply integrated stack solutions. The initiative may accelerate operational scale, but it also introduces new operational risks by centralizing key components of service delivery and support within a single AI-driven platform, potentially affecting vendor lock-in, data governance, and continuity of MSP business models.Parallel developments highlight new vendor integration strategies among MSP-focused software providers. One example is Lexfold’s AI documentation system, which, rather than integrating directly with core PSA and RMM tools, utilizes intermediary platforms such as Scalepad and Liongard for data access. Seth Robinson emphasizes that these alternative integration points may alter an MSP’s center of operational gravity and complexity management, underscoring the need to assess not just functional outcomes but also system dependencies and brittleness introduced by new integration paths.For MSPs and IT leaders, these trends underscore the necessity of rigorous due diligence in vendor relationships, clarity on operational dependencies, and attention to the long-term implications of AI-enabled automation. Management—not elimination—of complexity remains central, with the risk of oversimplification leading to commoditization and loss of differentiation. Moreover, advances in AI should prompt greater scrutiny about talent pipelines, upskilling strategies, and the potential risks of eroding early-career roles, which may impact long-term service quality and resilience. Careful evaluation of integration points, data integrity, and operational control is recommended to mitigate the practical and organizational risks emerging from these developments.  💼 All Our SponsorsSupport the vendors who support the show:👉 https://businessof.tech/sponsors/ 🚀 Join Business of Tech PlusGet exclusive access to investigative reports, vendor analysis, leadership briefings, and more.👉 https://businessof.tech/plus 🎧 Subscribe to the Business of TechWant the show on your favorite podcast app or prefer the written versions of each story?📲 https://www.businessof.tech/subscribe 📰 Story Links & SourcesLooking for the links from today’s stories?Every episode script — with full source links — is posted at:🌐 https://www.businessof.tech 🎙 Want to Be a Guest?Pitch your story or appear on Business of Tech: Daily 10-Minute IT Services Insights:💬 https://www.podmatch.com/hostdetailpreview/businessoftech 🔗 Follow Business of Tech LinkedIn: https://www.linkedin.com/company/28908079YouTube: https://youtube.com/mspradioBluesky: https://bsky.app/profile/businessof.techInstagram: https://www.instagram.com/mspradioTikTok: https://www.tiktok.com/@businessoftechFacebook: https://www.facebook.com/mspradionews Hosted by Simplecast, an AdsWizz company. See pcm.adswizz.com for information about our collection and use of personal data for advertising.

A PwC survey of over 4,400 CEOs across 105 countries found that 56% report artificial intelligence has not delivered meaningful revenue growth or cost savings in the past year. Only one in eight organizations saw both benefits. The core issue, as highlighted by Dave Sobel, lies in poor integration—largely due to data quality challenges and legacy systems—leaving many businesses stuck in what PwC terms “experimentation purgatory.” Despite significant investment, AI infrastructure is often failing to produce measurable returns.This lack of operational discipline is mirrored by the rising incident of AI bots, which now account for 1 out of every 50 website visits, a sixfold increase from earlier reports. AI is successfully extracting value from enterprise infrastructure through sophisticated scraping, as companies pay for tools that return little and simultaneously fund infrastructure serving AI bots. The operational cost and exposure from bot traffic and ineffective AI tool adoption highlight the disconnect between hype and practical benefit.Adjacent stories expand on the governance gap and evolving expectations around risk. The U.S. and China declined to sign a non-binding declaration on military AI, underlining global regulatory fragmentation. In contrast, the Cybersecurity and Infrastructure Security Agency (CISA) issued a binding directive for federal civilian agencies to remove unsupported devices within a year, signaling substantial operational risk from end-of-life technology. These regulatory movements are expected to drive similar risk accountability into the private sector, primarily through insurance requirements.For MSPs and IT service providers, the takeaway is not to chase AI-powered offerings but to prioritize readiness, control, and cost accountability. Vendor partner programs (Cisco and 1Password) reward lifecycle management and customer retention, not AI sales. The practical competitive advantage is operational honesty—delivering realistic assessments, proactive client interactions, and transparent guidance. Automation should fund genuine client relationship activities, not replace them. The focus should remain on safeguarding operational integrity, controlling technology risk, and building customer success capability.Four things to know today:00:00 PwC Survey Finds Most Business Leaders Still Waiting for AI Payoff05:00 Federal Agencies Ordered to Eliminate End-of-Life Devices Over Cyber Threats08:06 Cisco and 1Password Launch Partner Programs Focused on Customer Success10:52 Harvard Business Review Says Human Touch Remains Critical Advantage Over AIThis is the Business of Tech.   Supported by:  Small Biz Thought Community   💼 All Our SponsorsSupport the vendors who support the show:👉 https://businessof.tech/sponsors/ 🚀 Join Business of Tech PlusGet exclusive access to investigative reports, vendor analysis, leadership briefings, and more.👉 https://businessof.tech/plus 🎧 Subscribe to the Business of TechWant the show on your favorite podcast app or prefer the written versions of each story?📲 https://www.businessof.tech/subscribe 📰 Story Links & SourcesLooking for the links from today’s stories?Every episode script — with full source links — is posted at:🌐 https://www.businessof.tech 🎙 Want to Be a Guest?Pitch your story or appear on Business of Tech: Daily 10-Minute IT Services Insights:💬 https://www.podmatch.com/hostdetailpreview/businessoftech 🔗 Follow Business of Tech LinkedIn: https://www.linkedin.com/company/28908079YouTube: https://youtube.com/mspradioBluesky: https://bsky.app/profile/businessof.techInstagram: https://www.instagram.com/mspradioTikTok: https://www.tiktok.com/@businessoftechFacebook: https://www.facebook.com/mspradionews Hosted by Simplecast, an AdsWizz company. See pcm.adswizz.com for information about our collection and use of personal data for advertising.

The primary development centers on the shift toward smaller, task-specific AI models within enterprises and how this shift is primarily about transferring liability from AI vendors to operators. Dave Sobel notes that while narrower AI models are being marketed as safer and easier to govern, the reality is that they shift the burden of control, oversight, and risk directly onto the organizations deploying them. Hidden costs—particularly those related to data infrastructure, compliance, and ongoing governance—are substantial, often eclipsing the initial AI investment.Supporting data includes findings from a Salesforce survey indicating that CIOs allocate a median of 20% of their budgets to data and infrastructure management versus 5% to AI itself. Dave Sobel stresses that the real cost of an AI project can be significantly higher than client expectations, pointing out a 4:1 spending ratio between supporting infrastructure and the AI technology. This underscores the risk for MSPs who may fail to price in the operational and governance requirements appropriately, exposing themselves to financial and compliance liabilities.Adjacent stories address OpenAI’s strategic expansion into advertising and direct consulting, marking a move from pure technology platform to direct competitor for services revenue. OpenAI is creating an Ads Integrity Team to manage advertiser verification and reduce scam risk but acknowledges the challenges of maintaining effective controls at scale. In parallel, OpenAI is embedding engineers within client operations—mirroring other internal AI initiatives such as those at Shield and Entegris—and reinforcing a market divide. MSPs who build such capabilities internally capture margin, while others face lasting margin compression as purchasers of external solutions.The implications for MSPs and IT leaders are direct. Success depends less on which AI model is selected and more on the provider’s ability to establish rigorous governance, liability management, and ongoing operational control. The market is bifurcating: service providers who can build in-house AI platforms or attract strategic investment will retain efficiency as margin, while those relegated to purchasing third-party tools risk further erosion of profitability and competitive position. The decision to build or buy is becoming a business model risk, not just a procurement choice, and the opportunity to address it is narrowing.Three things to know today:00:00 Firms Shift to Task-Specific AI Models Amid Governance, Liability Concerns 04:35 OpenAI Launches Ads Integrity Team, Hires Hundreds as Services Push Begins08:34 MSP Market Splits as Integris, Shield Build Internal AI, Others Buy ToolsThis is the Business of Tech.   Supported by:  IT Service Provider University   💼 All Our SponsorsSupport the vendors who support the show:👉 https://businessof.tech/sponsors/ 🚀 Join Business of Tech PlusGet exclusive access to investigative reports, vendor analysis, leadership briefings, and more.👉 https://businessof.tech/plus 🎧 Subscribe to the Business of TechWant the show on your favorite podcast app or prefer the written versions of each story?📲 https://www.businessof.tech/subscribe 📰 Story Links & SourcesLooking for the links from today’s stories?Every episode script — with full source links — is posted at:🌐 https://www.businessof.tech 🎙 Want to Be a Guest?Pitch your story or appear on Business of Tech: Daily 10-Minute IT Services Insights:💬 https://www.podmatch.com/hostdetailpreview/businessoftech 🔗 Follow Business of Tech LinkedIn: https://www.linkedin.com/company/28908079YouTube: https://youtube.com/mspradioBluesky: https://bsky.app/profile/businessof.techInstagram: https://www.instagram.com/mspradioTikTok: https://www.tiktok.com/@businessoftechFacebook: https://www.facebook.com/mspradionews Hosted by Simplecast, an AdsWizz company. See pcm.adswizz.com for information about our collection and use of personal data for advertising.

The episode focuses on current security risks and limitations in industry intelligence, highlighting that CISA’s Known Exploited Vulnerabilities (KEV) catalog often lags by years in tagging vulnerabilities exploited by ransomware. One cited vulnerability sat in the catalog for 1,353 days before being flagged as ransomware-exploited, illustrating a significant delay in actionable intelligence. This gap raises concerns for MSPs whose patching priorities rely on outdated catalogs, potentially leading to a misalignment between compliance activities and actual threat vectors.Supporting this, Dave Sobel underscores how evolving threat models frequently bypass traditional vulnerability management. The recent compromise of OpenClaw’s skills marketplace, with a 12% malicious rate in submitted skills and basic post-facto reporting mechanisms, demonstrates that credential theft and malicious automation now present risks outside standard patch management. The core operational challenge for MSPs is not just software vulnerability but the governance of AI-enabled tools and uncontrolled marketplaces that can expose clients to breaches.Further contextualizing risk and automation, vendor launches include Lexful’s AI-native documentation for MSPs and Cavelo Flash’s agentless assessment tool. These offerings promise streamlined documentation and rapid risk assessment, but Dave Sobel notes their reliance on beta features, integration dependencies, and non-definitive compliance positions. Additionally, DocuSign’s release of AI-generated contract summaries raises questions about liability, as inaccurate summaries can mislead signers, and responsibility defaults to the end user rather than the vendor.The primary implication for MSPs and technology leaders is the need to inventory all AI-powered tools with access to client environments, actively govern marketplace adoption, and critically evaluate automation claims. Compliance-focused patching is no longer sufficient; operational oversight must prioritize credential management and identity governance over checklist-based approaches. Caution is advised before rapid migration to beta solutions or locking into long-term contracts, as both reduce flexibility and increase exposure to emerging, non-traditional attack surfaces.Three things to know today00:00 CISA's Ransomware Tags Arrive Years Late While AI Tools Steal Credentials Now05:53 IT Glue Founder Launches AI Documentation Platform Lexful for MSPs at Right of Boom09:52 Cavelo and DocuSign Launch AI Tools That Automate Assessments and Contract ReviewsThis is the Business of Tech.   Supported by: Small Biz Thoughts Community  💼 All Our SponsorsSupport the vendors who support the show:👉 https://businessof.tech/sponsors/ 🚀 Join Business of Tech PlusGet exclusive access to investigative reports, vendor analysis, leadership briefings, and more.👉 https://businessof.tech/plus 🎧 Subscribe to the Business of TechWant the show on your favorite podcast app or prefer the written versions of each story?📲 https://www.businessof.tech/subscribe 📰 Story Links & SourcesLooking for the links from today’s stories?Every episode script — with full source links — is posted at:🌐 https://www.businessof.tech 🎙 Want to Be a Guest?Pitch your story or appear on Business of Tech: Daily 10-Minute IT Services Insights:💬 https://www.podmatch.com/hostdetailpreview/businessoftech 🔗 Follow Business of Tech LinkedIn: https://www.linkedin.com/company/28908079YouTube: https://youtube.com/mspradioBluesky: https://bsky.app/profile/businessof.techInstagram: https://www.instagram.com/mspradioTikTok: https://www.tiktok.com/@businessoftechFacebook: https://www.facebook.com/mspradionews Hosted by Simplecast, an AdsWizz company. See pcm.adswizz.com for information about our collection and use of personal data for advertising.

The episode centers on the expanding adoption of artificial intelligence (AI) tools among workers alongside a notable decline in confidence. According to a Manpower Group study cited by Dave Sobel, AI confidence among workers decreased by 18% even as usage increased by 13% over the past year. This divergence highlights a governance and operational gap for MSPs, as enterprise clients confront both the potential and the risks of AI-enabled solutions, facing unresolved issues of output reliability, oversight, and liability when missteps occur.Supporting this trend, findings from the Stanford University Institute for Human-Centered Artificial Intelligence indicate that nearly 30% of AI chatbot users encountered harmful suggestions. While these statistics lack detailed breakdowns – such as which platforms or definitions of “harmful” – they shape widespread client perceptions and intensify scrutiny of AI guidance provided by IT service providers. Meanwhile, enterprise vendors like Zendesk report improved satisfaction rates from automated resolutions but emphasize the costly need to overhaul workflows and data management to effectively harness AI benefits.Additional focus is given to Microsoft’s scheduled deprecation of the NTLM authentication protocol, replaced by newer mechanisms that are not yet fully deployed or reliable. Dave Sobel notes that legacy systems depending on NTLM present tangible operational and legal risks for MSPs, as clients may face authentication failures or re-enable insecure protocols unless thoroughly audited. Elsewhere, the "right to repair" movement is gaining ground as the Environmental Protection Agency affirms farmers’ rights to repair their own equipment, with broader implications for IT hardware access and vendor-dependent service models.The confluence of these developments underscores the importance for MSPs and IT leaders to shift focus from product access and resale toward risk governance, lifecycle planning, and documenting client decisions—especially in AI, authentication methodologies, and hardware maintenance. Mitigating liability, clarifying accountability with clients, and tracking evolving vendor and regulatory actions are essential to maintain relevance and safeguard operations as service and product access models change. Three things to know today00:00 Workers Use More AI But Trust It Less, Creating New Service Risks03:44 Microsoft Plans NTLM Phase-Out Despite Unfinished Kerberos Replacement Technology06:32 Google, Adobe Launch AI Subscriptions While OpenAI Retires GPT-4o Next Month10:52 EPA Ruling Lets Farmers Repair Equipment, Pressures Tech Right-to-Repair LawsThis is the Business of Tech.   Supported by:   💼 All Our SponsorsSupport the vendors who support the show:👉 https://businessof.tech/sponsors/ 🚀 Join Business of Tech PlusGet exclusive access to investigative reports, vendor analysis, leadership briefings, and more.👉 https://businessof.tech/plus 🎧 Subscribe to the Business of TechWant the show on your favorite podcast app or prefer the written versions of each story?📲 https://www.businessof.tech/subscribe 📰 Story Links & SourcesLooking for the links from today’s stories?Every episode script — with full source links — is posted at:🌐 https://www.businessof.tech 🎙 Want to Be a Guest?Pitch your story or appear on Business of Tech: Daily 10-Minute IT Services Insights:💬 https://www.podmatch.com/hostdetailpreview/businessoftech 🔗 Follow Business of Tech LinkedIn: https://www.linkedin.com/company/28908079YouTube: https://youtube.com/mspradioBluesky: https://bsky.app/profile/businessof.techInstagram: https://www.instagram.com/mspradioTikTok: https://www.tiktok.com/@businessoftechFacebook: https://www.facebook.com/mspradionews Hosted by Simplecast, an AdsWizz company. See pcm.adswizz.com for information about our collection and use of personal data for advertising.

The episode centers on the structural shift in managed services driven by the adoption of autonomous AI agents and the resulting accountability challenges for IT service providers. According to Dave Sobel, 22% of employees in Token Security’s surveyed organizations are independently running AI agents such as OpenClaw with terminal and browser command capabilities, without formal IT oversight. This widespread shadow automation creates significant operational and security exposure, indicating unsanctioned user demand for advanced automation that IT has not provided. The core risk is not simply unauthorized technology use, but ineffective governance and lack of visibility into automation processes that can impact both client safety and provider liability.Context provided throughout the episode points to a disconnect between optimistic business sentiment and actionable IT spending. While the NFIB index reflects rising small business optimism and increased capital access, most technology-related investments appear to have already been made in prior periods. Only 19% of small businesses plan further equipment investments, suggesting limited near-term demand. Meanwhile, SBA workforce reductions signal longer loan processing times, affecting clients who depend on SBA-backed funding for technology projects—a concrete operational delay for MSPs whose services are linked to client capital expenditure timelines.Additional discussion focuses on evolving industry economics, notably a projected increase in the North American IT services market to $1.09 trillion by 2033, as reported by Research and Markets. However, Dave Sobel emphasizes that the majority of this growth is captured by hyperscalers and large integrators, not regional MSPs. Cooling wage inflation, detailed by Service Leadership, may present temporary margin opportunities but also introduces risk if MSPs respond with indiscriminate hiring rather than automation or upskilling strategies. The Shield Technology Partners investment, involving OpenAI’s embedded research in IT operations, signals rapid automation of rules-based workflows and reiterates the urgency of addressing task displacement and margin compression.For MSPs and IT service leaders, the practical takeaway is clear: unmanaged, employee-driven AI automation presents both risk exposure and a mapping of unmet service demand. Blocking shadow agents is a reactive measure—long-term resilience depends on developing agent governance frameworks, including permissioning, audit, and incident response protocols. With shrinking margins and increasing automation, providers must reevaluate operational models, prioritize revenue-per-employee, and focus on delivering accountable, sanctioned automation services rather than competing on basic labor cost or commodity support.Four things to know today00:00  NFIB Index Hits 99.5 as 64% Face Inflation and SBA Cuts Half Its Workforce04:44  IT Services Market Growth to $1.09T Coincides With Declining Wage Inflation08:01  Shield Secures Second $100M From OpenAI-Backed Thrive Holdings for AI Operations Platform11:21  Token Security Reports 22% Shadow IT Adoption of OpenClawThis is the Business of Tech.   Supported by: MSP Radio - Internal Ad   💼 All Our SponsorsSupport the vendors who support the show:👉 https://businessof.tech/sponsors/ 🚀 Join Business of Tech PlusGet exclusive access to investigative reports, vendor analysis, leadership briefings, and more.👉 https://businessof.tech/plus 🎧 Subscribe to the Business of TechWant the show on your favorite podcast app or prefer the written versions of each story?📲 https://www.businessof.tech/subscribe 📰 Story Links & SourcesLooking for the links from today’s stories?Every episode script — with full source links — is posted at:🌐 https://www.businessof.tech 🎙 Want to Be a Guest?Pitch your story or appear on Business of Tech: Daily 10-Minute IT Services Insights:💬 https://www.podmatch.com/hostdetailpreview/businessoftech 🔗 Follow Business of Tech LinkedIn: https://www.linkedin.com/company/28908079YouTube: https://youtube.com/mspradioBluesky: https://bsky.app/profile/businessof.techInstagram: https://www.instagram.com/mspradioTikTok: https://www.tiktok.com/@businessoftechFacebook: https://www.facebook.com/mspradionews Hosted by Simplecast, an AdsWizz company. See pcm.adswizz.com for information about our collection and use of personal data for advertising.

The appointment of Mike Riggs as Chief Product Officer at Empath signifies the company's transition from founder-led intuition to formalized product governance. According to Wes Spencer, Empath reached over 500 MSP customers and now requires more disciplined processes as it moves from early-stage, high-velocity development to operational maturity. Mike Riggs described his role as systematizing elements that were previously managed informally—covering areas from design to engineering—and explicitly stated the intent to strengthen operational accountability for both the platform and its customers.This structural change follows recognition by the founders that their limited technical background required complementary leadership to scale effectively. Advisors highlighted that, while growth and partner engagement met expectations, scaling Empath’s platform now demands greater rigor and repeatable operational practices. Empath’s platform has evolved from being a convenience service to an operational dependency, with MSPs using it for training, team accountability, and embedded workflows. Mike Riggs emphasized the importance of refining user experience, onboarding processes, and support mechanisms as MSP reliance grows.A central theme discussed is the shift in Empath’s product category—from a basic learning management tool toward a broader learning, development, and accountability platform for MSPs. Features such as notification systems and visibility into required actions move the platform beyond content delivery into proactive management of personnel performance and compliance. This evolution brings Empath closer to intersecting with HR, policy, and managerial oversight, compelling the company to balance user engagement features with the need for reliable, auditable, and controlled change management.For MSPs and IT service providers, Empath’s shift has operational implications and risk factors. Increasing dependency on a single platform heightens the significance of product stability, disciplined rollout of new features, and clarity of governance. As platforms like Empath become more embedded in day-to-day operations, service providers must reassess processes for vendor risk management, accountability, and internal policy alignment. The move described is not an indicator of problems but of maturation—a transition that typically introduces both new safeguards and greater operational complexity.  💼 All Our SponsorsSupport the vendors who support the show:👉 https://businessof.tech/sponsors/ 🚀 Join Business of Tech PlusGet exclusive access to investigative reports, vendor analysis, leadership briefings, and more.👉 https://businessof.tech/plus 🎧 Subscribe to the Business of TechWant the show on your favorite podcast app or prefer the written versions of each story?📲 https://www.businessof.tech/subscribe 📰 Story Links & SourcesLooking for the links from today’s stories?Every episode script — with full source links — is posted at:🌐 https://www.businessof.tech 🎙 Want to Be a Guest?Pitch your story or appear on Business of Tech: Daily 10-Minute IT Services Insights:💬 https://www.podmatch.com/hostdetailpreview/businessoftech 🔗 Follow Business of Tech LinkedIn: https://www.linkedin.com/company/28908079YouTube: https://youtube.com/mspradioBluesky: https://bsky.app/profile/businessof.techInstagram: https://www.instagram.com/mspradioTikTok: https://www.tiktok.com/@businessoftechFacebook: https://www.facebook.com/mspradionews Hosted by Simplecast, an AdsWizz company. See pcm.adswizz.com for information about our collection and use of personal data for advertising.

The episode centers on practical approaches for Managed Service Providers (MSPs) and IT leaders assessing artificial intelligence (AI) adoption, with David Espindola detailing the crucial distinction between “maker,” “shaper,” and “taker” strategies. David Espindola emphasizes that organizations must intentionally decide their role in AI development and use—whether building proprietary systems, shaping solutions atop existing models, or simply consuming pre-built capabilities. This decision, he notes, is foundational for aligning risk tolerance, investment, and technical capacity with business goals, especially given the rapid pace and inherent uncertainty in AI’s evolution.Supporting this framework, David Espindola references insights from a Small Business Administration project, which found that most small businesses are struggling to define applicable use cases for AI and tend toward risk-avoidant stances despite external pressures to adopt the technology. He stresses that AI implementation should not be a solution in search of a problem; rather, an organization’s readiness, risk, investment capability, and specific industry context must determine its approach. Key recommendations include conducting readiness assessments, appointing internal AI champions, and starting with small, low-risk pilot projects to build internal understanding and governance processes before scaling.The discussion broadens to ethical and governance considerations, with both David Espindola and the host cautioning that responsible AI adoption is a business necessity rather than a compliance checkbox. They advocate for formal employee training, the establishment of clear usage policies, and strict controls over tool access to mitigate risks such as data leakage, hallucinated outputs, and misaligned communications. The emphasis is on building practical safeguards rather than pursuing AI for its own sake, reflecting a pragmatic, risk-managed approach tailored to each organization’s context.For MSPs and IT service providers, the practical takeaways are clear: pursuing AI adoption requires a methodical, risk-aware strategy focused on business relevance, operational governance, and targeted experimentation. The harms of rushed deployments, poor change management, or lack of internal education are underscored, with the implication that long-term value and reduced exposure are found in deliberate, well-governed adoption efforts. Readiness assessments, pilot programs, and robust policy frameworks emerge as the primary enablers of sustainable outcomes in this rapidly evolving landscape.  💼 All Our SponsorsSupport the vendors who support the show:👉 https://businessof.tech/sponsors/ 🚀 Join Business of Tech PlusGet exclusive access to investigative reports, vendor analysis, leadership briefings, and more.👉 https://businessof.tech/plus 🎧 Subscribe to the Business of TechWant the show on your favorite podcast app or prefer the written versions of each story?📲 https://www.businessof.tech/subscribe 📰 Story Links & SourcesLooking for the links from today’s stories?Every episode script — with full source links — is posted at:🌐 https://www.businessof.tech 🎙 Want to Be a Guest?Pitch your story or appear on Business of Tech: Daily 10-Minute IT Services Insights:💬 https://www.podmatch.com/hostdetailpreview/businessoftech 🔗 Follow Business of Tech LinkedIn: https://www.linkedin.com/company/28908079YouTube: https://youtube.com/mspradioBluesky: https://bsky.app/profile/businessof.techInstagram: https://www.instagram.com/mspradioTikTok: https://www.tiktok.com/@businessoftechFacebook: https://www.facebook.com/mspradionews Hosted by Simplecast, an AdsWizz company. See pcm.adswizz.com for information about our collection and use of personal data for advertising.

The current wave of managed service provider (MSP) consolidation and rollups is being distinguished by the integration of advanced artificial intelligence (AI) expertise, particularly among entities such as SHIELD and Titan. As discussed by Rich Freeman and Jessica Davis, these newer rollups are acquiring not just MSPs but also Silicon Valley AI talent and developing proprietary AI-driven services, a marked shift from earlier private equity-backed consolidators. Rich Freeman highlighted SHIELD’s recent leadership hires from Palantir and direct collaboration agreements with OpenAI, signaling an intent to embed AI at the operational core rather than simply as a tool for optimization.The structure and access to data is central to these developments. As Rich Freeman elaborated, large rollups possess a scale-driven “AI flywheel” advantage: broader customer bases provide larger datasets, which in turn drive better AI performance, operational efficiency, and profitability. This concentration creates risks for smaller MSPs that lack equivalent data pools and resources for internal AI development. Jessica Davis noted that while tool vendors and platform companies such as ConnectWise and Kaseya are enhancing AI within their offerings, their efforts are not yet matching the focused investments of the largest rollups, and are simultaneously being pressured to accelerate innovation.Commercial and operational pressures are increasing throughout the MSP ecosystem. Jessica Davis cited indications of slowing managed services revenue growth projections (potentially below 10%), alongside potential cost-cutting or workforce reductions within large rollups as private equity owners seek AI-driven returns. Divergent rollup models are also emerging—with distinctions between platform centralization (e.g., retiring acquired brands) and decentralized, founder-friendly approaches (e.g., preserving local brands and founder involvement). Decisions around acquisition, platform engagement, and specialization are increasingly nuanced as founders and owners evaluate their options under new market dynamics.For MSPs and IT service leaders, these trends necessitate a measured response. The competitive risk posed by the AI-fueled scale of consolidated rollups underscores the importance of specialization, operational focus, and alignment with platform partners committed to democratizing AI resources. Community collaboration, best-practice sharing, and strategic use of vendor tools are positioned as potential mitigants to the structural disadvantages faced by smaller organizations. Governance, due diligence, and clear assessment of vendor or acquirer incentives should be prioritized, especially as service models and influencer dynamics continue to fragment. Remaining adaptable, resource-aware, and critically informed about the changing power landscape will be vital for sustainable operations.  💼 All Our SponsorsSupport the vendors who support the show:👉 https://businessof.tech/sponsors/ 🚀 Join Business of Tech PlusGet exclusive access to investigative reports, vendor analysis, leadership briefings, and more.👉 https://businessof.tech/plus 🎧 Subscribe to the Business of TechWant the show on your favorite podcast app or prefer the written versions of each story?📲 https://www.businessof.tech/subscribe 📰 Story Links & SourcesLooking for the links from today’s stories?Every episode script — with full source links — is posted at:🌐 https://www.businessof.tech 🎙 Want to Be a Guest?Pitch your story or appear on Business of Tech: Daily 10-Minute IT Services Insights:💬 https://www.podmatch.com/hostdetailpreview/businessoftech 🔗 Follow Business of Tech LinkedIn: https://www.linkedin.com/company/28908079YouTube: https://youtube.com/mspradioBluesky: https://bsky.app/profile/businessof.techInstagram: https://www.instagram.com/mspradioTikTok: https://www.tiktok.com/@businessoftechFacebook: https://www.facebook.com/mspradionews Hosted by Simplecast, an AdsWizz company. See pcm.adswizz.com for information about our collection and use of personal data for advertising.

The emergence of Moltbot, an open source AI agent designed to operate across various messaging platforms and automate tasks through local device execution, is creating new risk vectors for MSPs and IT providers. Functioning with admin-level access and connecting to services like OpenAI and Google, Moltbot’s deployment has raised direct concerns around authority delegation without sufficient governance. Security researchers identified hundreds of exposed Moltbot instances, often due to misconfiguration, increasing the possibility of breaches and unauthorized data access. The episode underscores that these agents, treated as productivity tools, actually represent operational infrastructure capable of independent action, with potential impacts on client trust and regulatory liability.Expert sources cited in the discussion, including Cisco and Hudson Rock, have labeled Moltbot a security risk due to its storage of sensitive information in plain text and broad access permissions. The narrative warns that vendors and providers may underestimate the risks by normalizing deployment before establishing proper controls. Once these agents are embedded into workflows, reversing their use becomes difficult due to client reliance on perceived efficiency. The lack of mature governance frameworks, as shown by studies from Drexel University, means that many organizations lack even basic oversight of these autonomous agents.Adjacent industry developments highlight additional layers of operational complexity. Apple posted a 16% revenue increase, led by iPhone demand, and acquired Q AI to deepen its ambient automation capabilities, while shifting defaults that providers cannot easily influence or control. Simultaneously, the Linux community’s succession planning and Microsoft’s ongoing struggles with Windows 11 reliability further demonstrate systemic issues around authority, trust, and transparency in technology ecosystems.The episode’s analysis signals clear expectations for MSPs and technology leaders: explicit approval protocols for AI agents are necessary, akin to traditional admin controls. Providers must proactively define governance boundaries, anticipate non-billable labor resulting from automation failures, and assess vendor behavior in terms of roadmap rigidity and escalation pathways. Teaching clients about authority in automated environments, not just managing installations, will reduce exposure and clarify accountability as agentic technologies become standard.Three things to know today00:00 Moltbot’s Rise Highlights How AI Agents Are Becoming High-Risk Operators Without Governance03:49 Record iPhone Sales and a $2 Billion AI Acquisition Signal Apple’s Long-Term Control Strategy06:04 Leadership Succession, Software Trust, and AI Agents Reveal a Shared Governance ProblemThis is the Business of Tech.   Supported by:  ScalePad   💼 All Our SponsorsSupport the vendors who support the show:👉 https://businessof.tech/sponsors/ 🚀 Join Business of Tech PlusGet exclusive access to investigative reports, vendor analysis, leadership briefings, and more.👉 https://businessof.tech/plus 🎧 Subscribe to the Business of TechWant the show on your favorite podcast app or prefer the written versions of each story?📲 https://www.businessof.tech/subscribe 📰 Story Links & SourcesLooking for the links from today’s stories?Every episode script — with full source links — is posted at:🌐 https://www.businessof.tech 🎙 Want to Be a Guest?Pitch your story or appear on Business of Tech: Daily 10-Minute IT Services Insights:💬 https://www.podmatch.com/hostdetailpreview/businessoftech 🔗 Follow Business of Tech LinkedIn: https://www.linkedin.com/company/28908079YouTube: https://youtube.com/mspradioBluesky: https://bsky.app/profile/businessof.techInstagram: https://www.instagram.com/mspradioTikTok: https://www.tiktok.com/@businessoftechFacebook: https://www.facebook.com/mspradionews Hosted by Simplecast, an AdsWizz company. See pcm.adswizz.com for information about our collection and use of personal data for advertising.

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   💼 All Our SponsorsSupport the vendors who support the show:👉 https://businessof.tech/sponsors/ 🚀 Join Business of Tech PlusGet exclusive access to investigative reports, vendor analysis, leadership briefings, and more.👉 https://businessof.tech/plus 🎧 Subscribe to the Business of TechWant the show on your favorite podcast app or prefer the written versions of each story?📲 https://www.businessof.tech/subscribe 📰 Story Links & SourcesLooking for the links from today’s stories?Every episode script — with full source links — is posted at:🌐 https://www.businessof.tech 🎙 Want to Be a Guest?Pitch your story or appear on Business of Tech: Daily 10-Minute IT Services Insights:💬 https://www.podmatch.com/hostdetailpreview/businessoftech 🔗 Follow Business of Tech LinkedIn: https://www.linkedin.com/company/28908079YouTube: https://youtube.com/mspradioBluesky: https://bsky.app/profile/businessof.techInstagram: https://www.instagram.com/mspradioTikTok: https://www.tiktok.com/@businessoftechFacebook: https://www.facebook.com/mspradionews Hosted by Simplecast, an AdsWizz company. See pcm.adswizz.com for information about our collection and use of personal data for advertising.

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:   💼 All Our SponsorsSupport the vendors who support the show:👉 https://businessof.tech/sponsors/ 🚀 Join Business of Tech PlusGet exclusive access to investigative reports, vendor analysis, leadership briefings, and more.👉 https://businessof.tech/plus 🎧 Subscribe to the Business of TechWant the show on your favorite podcast app or prefer the written versions of each story?📲 https://www.businessof.tech/subscribe 📰 Story Links & SourcesLooking for the links from today’s stories?Every episode script — with full source links — is posted at:🌐 https://www.businessof.tech 🎙 Want to Be a Guest?Pitch your story or appear on Business of Tech: Daily 10-Minute IT Services Insights:💬 https://www.podmatch.com/hostdetailpreview/businessoftech 🔗 Follow Business of Tech LinkedIn: https://www.linkedin.com/company/28908079YouTube: https://youtube.com/mspradioBluesky: https://bsky.app/profile/businessof.techInstagram: https://www.instagram.com/mspradioTikTok: https://www.tiktok.com/@businessoftechFacebook: https://www.facebook.com/mspradionews Hosted by Simplecast, an AdsWizz company. See pcm.adswizz.com for information about our collection and use of personal data for advertising.

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/  💼 All Our SponsorsSupport the vendors who support the show:👉 https://businessof.tech/sponsors/ 🚀 Join Business of Tech PlusGet exclusive access to investigative reports, vendor analysis, leadership briefings, and more.👉 https://businessof.tech/plus 🎧 Subscribe to the Business of TechWant the show on your favorite podcast app or prefer the written versions of each story?📲 https://www.businessof.tech/subscribe 📰 Story Links & SourcesLooking for the links from today’s stories?Every episode script — with full source links — is posted at:🌐 https://www.businessof.tech 🎙 Want to Be a Guest?Pitch your story or appear on Business of Tech: Daily 10-Minute IT Services Insights:💬 https://www.podmatch.com/hostdetailpreview/businessoftech 🔗 Follow Business of Tech LinkedIn: https://www.linkedin.com/company/28908079YouTube: https://youtube.com/mspradioBluesky: https://bsky.app/profile/businessof.techInstagram: https://www.instagram.com/mspradioTikTok: https://www.tiktok.com/@businessoftechFacebook: https://www.facebook.com/mspradionews Hosted by Simplecast, an AdsWizz company. See pcm.adswizz.com for information about our collection and use of personal data for advertising.

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/  💼 All Our SponsorsSupport the vendors who support the show:👉 https://businessof.tech/sponsors/ 🚀 Join Business of Tech PlusGet exclusive access to investigative reports, vendor analysis, leadership briefings, and more.👉 https://businessof.tech/plus 🎧 Subscribe to the Business of TechWant the show on your favorite podcast app or prefer the written versions of each story?📲 https://www.businessof.tech/subscribe 📰 Story Links & SourcesLooking for the links from today’s stories?Every episode script — with full source links — is posted at:🌐 https://www.businessof.tech 🎙 Want to Be a Guest?Pitch your story or appear on Business of Tech: Daily 10-Minute IT Services Insights:💬 https://www.podmatch.com/hostdetailpreview/businessoftech 🔗 Follow Business of Tech LinkedIn: https://www.linkedin.com/company/28908079YouTube: https://youtube.com/mspradioBluesky: https://bsky.app/profile/businessof.techInstagram: https://www.instagram.com/mspradioTikTok: https://www.tiktok.com/@businessoftechFacebook: https://www.facebook.com/mspradionews Hosted by Simplecast, an AdsWizz company. See pcm.adswizz.com for information about our collection and use of personal data for advertising.

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.  💼 All Our SponsorsSupport the vendors who support the show:👉 https://businessof.tech/sponsors/ 🚀 Join Business of Tech PlusGet exclusive access to investigative reports, vendor analysis, leadership briefings, and more.👉 https://businessof.tech/plus 🎧 Subscribe to the Business of TechWant the show on your favorite podcast app or prefer the written versions of each story?📲 https://www.businessof.tech/subscribe 📰 Story Links & SourcesLooking for the links from today’s stories?Every episode script — with full source links — is posted at:🌐 https://www.businessof.tech 🎙 Want to Be a Guest?Pitch your story or appear on Business of Tech: Daily 10-Minute IT Services Insights:💬 https://www.podmatch.com/hostdetailpreview/businessoftech 🔗 Follow Business of Tech LinkedIn: https://www.linkedin.com/company/28908079YouTube: https://youtube.com/mspradioBluesky: https://bsky.app/profile/businessof.techInstagram: https://www.instagram.com/mspradioTikTok: https://www.tiktok.com/@businessoftechFacebook: https://www.facebook.com/mspradionews Hosted by Simplecast, an AdsWizz company. See pcm.adswizz.com for information about our collection and use of personal data for advertising.

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.  💼 All Our SponsorsSupport the vendors who support the show:👉 https://businessof.tech/sponsors/ 🚀 Join Business of Tech PlusGet exclusive access to investigative reports, vendor analysis, leadership briefings, and more.👉 https://businessof.tech/plus 🎧 Subscribe to the Business of TechWant the show on your favorite podcast app or prefer the written versions of each story?📲 https://www.businessof.tech/subscribe 📰 Story Links & SourcesLooking for the links from today’s stories?Every episode script — with full source links — is posted at:🌐 https://www.businessof.tech 🎙 Want to Be a Guest?Pitch your story or appear on Business of Tech: Daily 10-Minute IT Services Insights:💬 https://www.podmatch.com/hostdetailpreview/businessoftech 🔗 Follow Business of Tech LinkedIn: https://www.linkedin.com/company/28908079YouTube: https://youtube.com/mspradioBluesky: https://bsky.app/profile/businessof.techInstagram: https://www.instagram.com/mspradioTikTok: https://www.tiktok.com/@businessoftechFacebook: https://www.facebook.com/mspradionews Hosted by Simplecast, an AdsWizz company. See pcm.adswizz.com for information about our collection and use of personal data for advertising.

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.     💼 All Our SponsorsSupport the vendors who support the show:👉 https://businessof.tech/sponsors/ 🚀 Join Business of Tech PlusGet exclusive access to investigative reports, vendor analysis, leadership briefings, and more.👉 https://businessof.tech/plus 🎧 Subscribe to the Business of TechWant the show on your favorite podcast app or prefer the written versions of each story?📲 https://www.businessof.tech/subscribe 📰 Story Links & SourcesLooking for the links from today’s stories?Every episode script — with full source links — is posted at:🌐 https://www.businessof.tech 🎙 Want to Be a Guest?Pitch your story or appear on Business of Tech: Daily 10-Minute IT Services Insights:💬 https://www.podmatch.com/hostdetailpreview/businessoftech 🔗 Follow Business of Tech LinkedIn: https://www.linkedin.com/company/28908079YouTube: https://youtube.com/mspradioBluesky: https://bsky.app/profile/businessof.techInstagram: https://www.instagram.com/mspradioTikTok: https://www.tiktok.com/@businessoftechFacebook: https://www.facebook.com/mspradionews Hosted by Simplecast, an AdsWizz company. See pcm.adswizz.com for information about our collection and use of personal data for advertising.

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/https://incogni.com/tech10   PROMO CODE: tech10  💼 All Our SponsorsSupport the vendors who support the show:👉 https://businessof.tech/sponsors/ 🚀 Join Business of Tech PlusGet exclusive access to investigative reports, vendor analysis, leadership briefings, and more.👉 https://businessof.tech/plus 🎧 Subscribe to the Business of TechWant the show on your favorite podcast app or prefer the written versions of each story?📲 https://www.businessof.tech/subscribe 📰 Story Links & SourcesLooking for the links from today’s stories?Every episode script — with full source links — is posted at:🌐 https://www.businessof.tech 🎙 Want to Be a Guest?Pitch your story or appear on Business of Tech: Daily 10-Minute IT Services Insights:💬 https://www.podmatch.com/hostdetailpreview/businessoftech 🔗 Follow Business of Tech LinkedIn: https://www.linkedin.com/company/28908079YouTube: https://youtube.com/mspradioBluesky: https://bsky.app/profile/businessof.techInstagram: https://www.instagram.com/mspradioTikTok: https://www.tiktok.com/@businessoftechFacebook: https://www.facebook.com/mspradionews Hosted by Simplecast, an AdsWizz company. See pcm.adswizz.com for information about our collection and use of personal data for advertising.

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  💼 All Our SponsorsSupport the vendors who support the show:👉 https://businessof.tech/sponsors/ 🚀 Join Business of Tech PlusGet exclusive access to investigative reports, vendor analysis, leadership briefings, and more.👉 https://businessof.tech/plus 🎧 Subscribe to the Business of TechWant the show on your favorite podcast app or prefer the written versions of each story?📲 https://www.businessof.tech/subscribe 📰 Story Links & SourcesLooking for the links from today’s stories?Every episode script — with full source links — is posted at:🌐 https://www.businessof.tech 🎙 Want to Be a Guest?Pitch your story or appear on Business of Tech: Daily 10-Minute IT Services Insights:💬 https://www.podmatch.com/hostdetailpreview/businessoftech 🔗 Follow Business of Tech LinkedIn: https://www.linkedin.com/company/28908079YouTube: https://youtube.com/mspradioBluesky: https://bsky.app/profile/businessof.techInstagram: https://www.instagram.com/mspradioTikTok: https://www.tiktok.com/@businessoftechFacebook: https://www.facebook.com/mspradionews Hosted by Simplecast, an AdsWizz company. See pcm.adswizz.com for information about our collection and use of personal data for advertising.