Business of Tech: Daily MSP News & IT Services Analysis

The episode highlights a fundamental shift towards automation and agentic workflows in IT service delivery, as described by Slide and its leadership. This shift is exemplified by the move from traditional, manual “what” work in IT and software engineering to task automation at a machine or agentic level. Slide’s adoption of internally developed SaaS backup for Microsoft 365 and accelerated product roadmaps—enabled by recent AI advancements—reflects this industry-wide movement toward leveraging technology for operational speed and efficiency.The most consequential development discussed centers on the patent litigation between Slide and Kaseya/Datto. According to public records and statements from Slide, Kaseya and Datto expanded their infringement claims to cover 16 patents, now adding three more, and are seeking an injunction against Slide’s BCDR platform. Slide, led by interim CEO Austin McChord, maintains that it did not infringe on patents or misuse trade secrets, asserting confidence in its legal position and product differentiation. Slide has not filed any patents of its own as of now. The litigation brings uncertainty for MSP partners, as Kaseya’s complaint includes claims that customer usage may also constitute infringement.Supporting developments include leadership changes at Slide, with Michael Fass stepping down and no direct link to the ongoing litigation, as confirmed by Slide. The episode also details Slide’s rapid internal technology adoption, with AI-driven acceleration of development cycles, reorganization of development teams, and an emphasis on reducing human synchronization bottlenecks. Internally, Slide is measuring engineering progress through deliverable output and reduction in support tickets rather than traditional process metrics, reflecting a shift in operational accountability.For MSPs and IT service providers, the practical implications include growing exposure to supplier legal disputes and potential contract risk, especially where customer usage is implicated in ongoing litigation. The move toward automation introduces new governance challenges as responsibilities shift from manual to machine-driven processes. Leaders should closely monitor vendor claims about agentic technology readiness, manage costs as AI tools are not always cost-effective at current scale, and ensure safeguards are in place when outsourcing operational tasks to automated systems. Ongoing adaptation will be required as both legal environments and technology capabilities continue to change rapidly.Supported by: GuardzPax8Oveka About Business of Tech: The daily MSP news and analysis podcast for managed service providers and IT services leaders. Host Dave Sobel covers AI for MSPs, MSP pricing and profitability, MSP M&A and private equity, vendor partner programs, MSP cybersecurity and liability, and MSP operations — and answers the question every story raises: Why do we care? Produced by MSP Radio.💼 All Our SponsorsMSP Radio is supported by our partners: ABC Solutions · CometBackup · Firetail · Guardz · HaloPSA · LogMeIn · Mailprotector · Oveka · Pax8 · Rythmz · ScalePad · TimeZest · Transit AISupporting the IT services community through insights, analysis, and transparency. 🚀 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 MSP News & IT Services Analysis💬 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 core structural shift identified is the widening gap between increased AI spending by MSPs and measurable business value. According to TD SYNNEX’s global survey of over 1,500 technology resellers, two-thirds are accelerating AI investment, but only one in five derives meaningful revenue. The value of AI does not come from buying licenses but from rebuilding specific processes—something most MSPs have yet to achieve at scale.A key development is consolidation-driven investment: Lyra Technology Group, backed by Evergreen, is embedding over 50 AI engineers within its MSP portfolio by 2027. This enables rapid in-house process redesign and service innovation, a tactic most independent MSPs cannot financially match. Lyra's approach leverages access to permanent capital to fund upfront engineering efforts before client revenue materializes.Supporting evidence confirms that few AI pilots reach production—only 13% according to TD SYNNEX—and that discussions within MSP circles remain subdued, with most usage limited to simple applications like email drafting. Practical success stories, such as custom tools that significantly cut internal processing hours, required extensive internal investment and experimentation rather than simple license acquisition.For MSPs and IT service providers, these trends shift accountability and risk to the operator. Simply selling AI seats or access does not result in demonstrated value or renewal justification. Sustainable advantage depends on successfully implementing and documenting AI-driven process changes internally before offering them as client solutions. This raises the bar for governance, internal investment, and credibility in AI-related projects.00:00 Where’s the AI Payoff? 03:58 The Value Lives in the Process06:37 Who Can Afford to Go First10:00 Why Do We Care? Supported by:  Guardz CouchDrop.io (Oveka)  About Business of Tech: The daily MSP news and analysis podcast for managed service providers and IT services leaders. Host Dave Sobel covers AI for MSPs, MSP pricing and profitability, MSP M&A and private equity, vendor partner programs, MSP cybersecurity and liability, and MSP operations — and answers the question every story raises: Why do we care? Produced by MSP Radio.💼 All Our SponsorsMSP Radio is supported by our partners: ABC Solutions · CometBackup · Firetail · Guardz · HaloPSA · LogMeIn · Mailprotector · Oveka · Pax8 · Rythmz · ScalePad · TimeZest · Transit AISupporting the IT services community through insights, analysis, and transparency. 🚀 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 MSP News & IT Services Analysis💬 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 structural gap persists between the promotion of AI solutions and their demonstrable, value-based adoption within the managed services sector, resulting in unclear accountability and risk of misaligned incentives. Vendors such as Microsoft and Anthropic push seat-based AI sales (e.g., Copilot, LLM services), but few MSP-led case studies exist to verify real client impact. Most reported usage centers on basic, assistive functions—despite a marked increase in AI discussion among MSP communities.The most notable finding is the disparity between AI licenses sold and those actively used, with implementation typically limited to automation of simple tasks such as email drafting or meeting summaries. According to analysis and peer reporting, meaningful MSP-led successes are rare, and nearly all documented results reflect either vendor-supplied examples or internal, non-client MSP automation initiatives.Further supporting evidence highlights concerns around increased reliance on external vendors, lack of outcome measurement standards, and rising operational complexity. MSPs are experimenting with replacing SaaS tools by building their own AI-driven solutions, yet unresolved legal responsibility—especially for autonomous agents—and evolving security threats complicate adoption. Vendors have accelerated AI feature rollouts and moved to consumption-based models, heightening the risk that features are resold without ensuring measurable client value or manageable costs.Practical implications for MSPs include the need for stronger governance, proactive risk management, and clearly demonstrating value delivered, rather than focusing on license volume. As manufacturers prioritize consumption models, managed services providers face contract risk and potential liability if promised outcomes are not met. Strategic focus should be on internal testing, outcome-based measurement, and identifying small process improvements that directly benefit clients and can be shown to reduce cost or improve efficiency. Supported by: WebPros(CometBackup) HaloPSAPax8 About Business of Tech: The daily MSP news and analysis podcast for managed service providers and IT services leaders. Host Dave Sobel covers AI for MSPs, MSP pricing and profitability, MSP M&A and private equity, vendor partner programs, MSP cybersecurity and liability, and MSP operations — and answers the question every story raises: Why do we care? Produced by MSP Radio.💼 All Our SponsorsMSP Radio is supported by our partners: ABC Solutions · CometBackup · Firetail · Guardz · HaloPSA · LogMeIn · Mailprotector · Oveka · Pax8 · Rythmz · ScalePad · TimeZest · Transit AISupporting the IT services community through insights, analysis, and transparency. 🚀 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 MSP News & IT Services Analysis💬 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 highlights a structural shift in which MSPs face increased contractual and operational risk as vendors embed AI agents in managed IT tools by default, often without explicit customer agreements or added cost. This practice blurs accountability for AI-driven actions and outcomes. Key examples include MSP360 and Omnissa, which have activated AI agents to automate support and administrative functions across their platforms without requiring provider or customer sign-off.MSP360’s MCP server connects its backup platform to Claude and ChatGPT, allowing agents to diagnose and remediate issues at no extra charge. Omnissa offers AI agents for tasks like vulnerability management and application testing. Data from ActivTrak and a UC Berkeley study suggest that AI adoption correlates with longer work hours and increased task switching, raising doubts about whether productivity gains translate into business value.Related developments—such as Reddit and Warcraft Logs restricting or monetizing previously free access—underscore that free features can be withdrawn or repurposed by vendors at any time. Legal analysis from Mayor Brown and operational feedback by Ignacio Lopez (WorkSmart.ai) indicate that responsibility for errors or failures by AI agents remains with the MSP, and most client agreements currently lack clear AI governance language.For MSPs, these trends elevate the need for precise contract terms, audit-ready documentation, and transparent client communication regarding agent scope and accountability. Without such rigor, risk shifts onto the MSP by default. As vendors standardize tooling, only well-defined agreements offer meaningful differentiation or protection in service renewals and dispute scenarios.00:00 Free Agents, Longer Days 03:59 Free Is Never a Term06:51 Who Holds the Risk11:29 Why Do We Care? Supported by: GoTo(LogMeIn) Guardz CouchDrop.io(Oveka)  About Business of Tech: The daily MSP news and analysis podcast for managed service providers and IT services leaders. Host Dave Sobel covers AI for MSPs, MSP pricing and profitability, MSP M&A and private equity, vendor partner programs, MSP cybersecurity and liability, and MSP operations — and answers the question every story raises: Why do we care? Produced by MSP Radio.💼 All Our SponsorsMSP Radio is supported by our partners: ABC Solutions · CometBackup · Firetail · Guardz · HaloPSA · LogMeIn · Mailprotector · Oveka · Pax8 · Rythmz · ScalePad · TimeZest · Transit AISupporting the IT services community through insights, analysis, and transparency. 🚀 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 MSP News & IT Services Analysis💬 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 structural margin pressure is emerging as AI manufacturers bill MSPs for agent activity, while MSPs are paid by clients for resolved outcomes. Companies like ConnectWise and Super IT charge based on volumes of AI-driven attempts (agent activity, token usage), creating a financial disconnect—since MSP contracts tie revenue to tickets actually solved and kept closed, not the process steps taken.ConnectWise introduced an RMM agent that automates diagnostics and ticket triage within its platform. Company-supplied data claims substantial efficiency gains: for one partner, 99% of over 7,000 tickets were evaluated in 30 days, but these metrics center on activity and hours "handed back," not the net number of tickets resolved. Shield Technology Partners’ analysis of its Forge platform found that higher pass rates from advanced models like GPT-6 increased the per-ticket cost, and that calculations often did not include the human review and correction required by agents’ errors.Further developments reinforce this trend. Super IT’s North America plans charge for AI agent activity levels, and Cloudera’s industry survey found only 27% of enterprises can accurately measure AI spend, with just 23% reporting net-positive value. Vendor-reported metrics prioritize activity and recurring revenue, not actual outcome delivery—leaving MSPs to bear the impact of unresolved tickets on their margins.The operational consequence is that MSPs must track the actual cost per resolved ticket—including failed agent attempts and human verification—to accurately set pricing models and protect profitability. Not accounting for this hidden cost can erode margins and obscure the real impact of automation initiatives. Accurate governance relies on updating pricing models and operational processes to reflect the full scope of AI-related costs and investments.00:00 The Agent Is in the Ticket 03:45 Billed for the Try, Not the Fix06:40 What a Resolved Ticket Costs11:14 Why Do We Care? Supported by: Pax8TimeZest CouchDrop.io(Oveka)  About Business of Tech: The daily MSP news and analysis podcast for managed service providers and IT services leaders. Host Dave Sobel covers AI for MSPs, MSP pricing and profitability, MSP M&A and private equity, vendor partner programs, MSP cybersecurity and liability, and MSP operations — and answers the question every story raises: Why do we care? Produced by MSP Radio.💼 All Our SponsorsMSP Radio is supported by our partners: ABC Solutions · CometBackup · Firetail · Guardz · HaloPSA · LogMeIn · Mailprotector · Oveka · Pax8 · Rythmz · ScalePad · TimeZest · Transit AISupporting the IT services community through insights, analysis, and transparency. 🚀 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 MSP News & IT Services Analysis💬 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.