Business of Tech: Daily 10-Minute IT Services Insights

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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