AI adoption is accelerating among small and mid-sized businesses (SMBs), with 87% of executives believing it will transform their operations within a year. However, only 29% feel their teams are prepared to implement AI effectively. This gap highlights a significant challenge for organizations that have invested in AI without seeing tangible returns. Anurag Agarwal, founder of TechAisle, emphasizes that while there are pockets of ROI in sectors like retail and healthcare, many SMBs struggle with data readiness and understanding their business processes, which hinders effective AI integration.The conversation also delves into the evolving relationship between vendors and partners, particularly regarding market development funds (MDF). Traditional MDF models are becoming obsolete as partners demand outcome-based funding, training, and co-development opportunities. Research indicates that 83% of MSPs prioritize investments that enhance capabilities and drive customer success. This shift reflects a broader trend where partners seek to align their funding requests with measurable business outcomes rather than activity-based metrics.Additionally, the episode addresses the concept of "platform inshittification," where dominant vendors may degrade user experiences to extract more value from partners and customers. This raises concerns for MSPs reliant on these platforms, as they may face risks such as reduced margins or direct competition from vendors. Agarwal advises MSPs to define their value beyond mere access to tools, positioning themselves as business efficiency consultants who can integrate various solutions to meet customer needs.For MSPs and IT service leaders, the implications are clear: they must enhance their own capabilities in data management and business process understanding to effectively leverage AI. Furthermore, as vendors shift towards outcome-based funding models, MSPs should prepare to present clear business plans that demonstrate how investments will lead to measurable results. This proactive approach will be essential for maintaining competitive advantage in a rapidly evolving technology landscape. 💼 All Our SponsorsSupport the vendors who support the show:👉 https://businessof.tech/sponsors/ 🚀 Join Business of Tech PlusGet exclusive access to investigative reports, vendor analysis, leadership briefings, and more.👉 https://businessof.tech/plus 🎧 Subscribe to the Business of TechWant the show on your favorite podcast app or prefer the written versions of each story?📲 https://www.businessof.tech/subscribe 📰 Story Links & SourcesLooking for the links from today’s stories?Every episode script — with full source links — is posted at:🌐 https://www.businessof.tech 🎙 Want to Be a Guest?Pitch your story or appear on Business of Tech: Daily 10-Minute IT Services Insights:💬 https://www.podmatch.com/hostdetailpreview/businessoftech 🔗 Follow Business of Tech LinkedIn: https://www.linkedin.com/company/28908079YouTube: https://youtube.com/mspradioBluesky: https://bsky.app/profile/businessof.techInstagram: https://www.instagram.com/mspradioTikTok: https://www.tiktok.com/@businessoftechFacebook: https://www.facebook.com/mspradionews Hosted by Simplecast, an AdsWizz company. See pcm.adswizz.com for information about our collection and use of personal data for advertising.
ConnectWise has announced enhancements to its Ozzio platform, which now includes expanded third-party patching for over 7,000 applications, improvements to the professional services automation (PSA) user experience, and advanced robotic process automation (RPA) capabilities. These updates aim to address security vulnerabilities in widely exploited applications and streamline operations for managed service providers (MSPs). The new features are set to improve operational efficiency and security, with the expanded patching available immediately and RPA features expected to roll out in the coming months.In conjunction with these updates, ESET has integrated its ESET Protect platform with ConnectWise Ozzio, allowing for one-click deployment of security management tools. This integration is designed to enhance the efficiency of security tasks for MSPs, enabling them to meet legal and insurance requirements more effectively. Additionally, ConnectSecure has introduced AI-powered vulnerability management reports that prioritize risks based on business impact rather than just technical severity, further supporting MSPs in delivering proactive risk assessments.OpenAI has surpassed 1 million business customers, marking it as the fastest-growing business platform in history. A Wharton study indicates that 75% of enterprises using AI technologies report a positive return on investment. Meanwhile, Google has launched Gemini AI tools for stock traders and improved hurricane prediction capabilities through its DeepMind technology, showcasing the growing integration of AI across various sectors, including finance and weather forecasting.For MSPs and IT service leaders, these developments underscore the importance of integrating advanced security and AI capabilities into their service offerings. As the landscape shifts towards cyber resilience and AI-driven solutions, providers must adapt by leveraging these tools to enhance their operational efficiency and client services. The focus on measurable outcomes, such as trust and risk management, will be crucial for maintaining competitive advantage in an increasingly automated environment. Four things to know today00:00 At IT Nation Connect, ConnectWise Focuses on Asio Enhancements While Ecosystem Partners Deliver the Bigger Innovation05:37 N-able Rebrands Its Future: Strong Earnings and AI-Fueled Pivot Toward Cyber Resilience08:31 From ChatGPT to Hurricanes: How AI’s Expansion Is Turning Tools Into Core Business Systems11:14 Trust, Transparency, and Transformation: How AI Acceleration Is Forcing Leaders to Rethink Human Metrics This is the Business of Tech. Supported by: https://mailprotector.com/mspradio/ 💼 All Our SponsorsSupport the vendors who support the show:👉 https://businessof.tech/sponsors/ 🚀 Join Business of Tech PlusGet exclusive access to investigative reports, vendor analysis, leadership briefings, and more.👉 https://businessof.tech/plus 🎧 Subscribe to the Business of TechWant the show on your favorite podcast app or prefer the written versions of each story?📲 https://www.businessof.tech/subscribe 📰 Story Links & SourcesLooking for the links from today’s stories?Every episode script — with full source links — is posted at:🌐 https://www.businessof.tech 🎙 Want to Be a Guest?Pitch your story or appear on Business of Tech: Daily 10-Minute IT Services Insights:💬 https://www.podmatch.com/hostdetailpreview/businessoftech 🔗 Follow Business of Tech LinkedIn: https://www.linkedin.com/company/28908079YouTube: https://youtube.com/mspradioBluesky: https://bsky.app/profile/businessof.techInstagram: https://www.instagram.com/mspradioTikTok: https://www.tiktok.com/@businessoftechFacebook: https://www.facebook.com/mspradionews Hosted by Simplecast, an AdsWizz company. See pcm.adswizz.com for information about our collection and use of personal data for advertising.
Amazon has initiated legal action against Perplexity AI, alleging that the startup's AI browser improperly accesses Amazon customer accounts by mimicking human browsing behavior. The lawsuit, filed in the U.S. District Court for the Northern District of California, raises concerns about security risks associated with Perplexity's Comet browser. Amazon claims that this practice undermines customer experience and its curated shopping services. In response, Perplexity asserts that Amazon is leveraging its market dominance to stifle competition, emphasizing that user credentials are stored locally and not on their servers.In a related development, Microsoft researchers have introduced a new simulation environment called the Magentic Marketplace, aimed at evaluating the performance of AI agents. This initiative, developed in collaboration with Arizona State University, highlights vulnerabilities in current agentic models, particularly their ability to operate unsupervised and respond to complex scenarios. Initial experiments revealed that as customer agents faced increased options, their efficiency declined due to information overload, raising concerns about the practical application of AI agents in real-world settings.Additional updates include Netrix Global's acquisition of Ricoh's U.S. IT services business, marking Ricoh's exit from the managed services sector. This acquisition is expected to enhance Netrix's offerings and geographic reach, particularly in the Northeast and Southeast regions of the United States. Furthermore, several product announcements aimed at improving operational efficiency for MSPs were made, including Movila's Project Hub for project management and Huntress's support for Cybersecurity Maturity Model Certification compliance.For MSPs and IT service leaders, these developments underscore the importance of governance and compliance in the deployment of AI technologies. The legal dispute between Amazon and Perplexity highlights the need for clarity around user data handling and the implications of automated systems. Additionally, the acquisition of Ricoh's IT services by Netrix serves as a reminder of the challenges in the managed services market, emphasizing the necessity for specialization and operational efficiency. Vendors are increasingly recognizing the need to provide practical support tools that enhance operational capabilities rather than merely offering security solutions.Four things to know today00:00 Amazon Says Perplexity’s AI Went Too Far — and Microsoft Just Proved Why Agents Still Struggle04:26 Ricoh’s Out, Netrix Is In — Another Big Shift in the MSP Landscape06:18 Three New AI Tools Drop for MSPs—But Only One Might Actually Matter09:20 Project Templates, Compliance Docs, and Pay-as-You-Go: Vendors Focus on MSP Basics This is the Business of Tech. 💼 All Our SponsorsSupport the vendors who support the show:👉 https://businessof.tech/sponsors/ 🚀 Join Business of Tech PlusGet exclusive access to investigative reports, vendor analysis, leadership briefings, and more.👉 https://businessof.tech/plus 🎧 Subscribe to the Business of TechWant the show on your favorite podcast app or prefer the written versions of each story?📲 https://www.businessof.tech/subscribe 📰 Story Links & SourcesLooking for the links from today’s stories?Every episode script — with full source links — is posted at:🌐 https://www.businessof.tech 🎙 Want to Be a Guest?Pitch your story or appear on Business of Tech: Daily 10-Minute IT Services Insights:💬 https://www.podmatch.com/hostdetailpreview/businessoftech 🔗 Follow Business of Tech LinkedIn: https://www.linkedin.com/company/28908079YouTube: https://youtube.com/mspradioBluesky: https://bsky.app/profile/businessof.techInstagram: https://www.instagram.com/mspradioTikTok: https://www.tiktok.com/@businessoftechFacebook: https://www.facebook.com/mspradionews Hosted by Simplecast, an AdsWizz company. See pcm.adswizz.com for information about our collection and use of personal data for advertising.
The Pentagon is preparing to enforce the Cybersecurity Maturity Model Certification (CMMC) requirements for small businesses, with compliance becoming mandatory in contracts starting November 10, 2025. Nearly 500 organizations have already achieved Level 2 certification, and the Defense Department is actively surveying small businesses to assess their readiness for these new standards. This initiative is expected to extend beyond Department of Defense contractors, potentially influencing other federal agencies and international partners to adopt similar cybersecurity measures.Recent reports highlight a concerning rise in cybersecurity threats, particularly in mobile attacks and ransomware incidents. According to the Verizon 2025 Mobile Security Index, 85% of organizations have reported increased mobile attacks, with 38% identifying AI-powered ransomware as a growing concern. Despite the widespread use of generative AI tools, only 17% of organizations have implemented specific security measures to counter AI-assisted attacks. Additionally, a report from Sophos indicates that 58% of retailers impacted by ransomware opted to pay the ransom, with the median demand doubling to $2 million.The episode also discusses the withdrawal of a controversial MIT Sloan paper that claimed 80% of ransomware attacks involved artificial intelligence, following criticism from cybersecurity experts. This incident underscores the issue of "AI-washing" in the cybersecurity sector, where unverified claims are made to attract attention. MSPs are advised to scrutinize such claims and focus on proven security practices rather than hype-driven narratives.For Managed Service Providers and IT decision-makers, the key takeaway is the importance of compliance and foundational cybersecurity practices. As the CMMC requirements loom, MSPs should consider developing readiness packages and tightening documentation processes. Additionally, the ongoing rise in lawsuits related to the Americans with Disabilities Act (ADA) highlights the need for businesses to prioritize compliance as a critical aspect of risk management, reinforcing that effective cybersecurity and legal compliance are essential for sustainable operations. Four things to know today00:00 The Cyber Threats Are Real — But It’s Not AI Geniuses, It’s the Same Old Tricks Getting Smarter05:05 MIT’s Big AI-Ransomware Claim Falls Apart — Turns Out the Data Didn’t Hold Up07:09 The Pentagon’s Rolling Out CMMC — and Small Businesses Are Feeling the Pressure on All Fronts10:27 Everyone Wants to Be Your Platform — New MSP Tools from Cisco, Barracuda, and WatchGuard Show WhyThis is the Business of Tech. Supported by: https://saasalerts.com/mspradio/ 💼 All Our SponsorsSupport the vendors who support the show:👉 https://businessof.tech/sponsors/ 🚀 Join Business of Tech PlusGet exclusive access to investigative reports, vendor analysis, leadership briefings, and more.👉 https://businessof.tech/plus 🎧 Subscribe to the Business of TechWant the show on your favorite podcast app or prefer the written versions of each story?📲 https://www.businessof.tech/subscribe 📰 Story Links & SourcesLooking for the links from today’s stories?Every episode script — with full source links — is posted at:🌐 https://www.businessof.tech 🎙 Want to Be a Guest?Pitch your story or appear on Business of Tech: Daily 10-Minute IT Services Insights:💬 https://www.podmatch.com/hostdetailpreview/businessoftech 🔗 Follow Business of Tech LinkedIn: https://www.linkedin.com/company/28908079YouTube: https://youtube.com/mspradioBluesky: https://bsky.app/profile/businessof.techInstagram: https://www.instagram.com/mspradioTikTok: https://www.tiktok.com/@businessoftechFacebook: https://www.facebook.com/mspradionews Hosted by Simplecast, an AdsWizz company. See pcm.adswizz.com for information about our collection and use of personal data for advertising.
The managed service provider (MSP) market has surpassed $305 billion and is projected to reach $571 billion by 2033, indicating a strong trend toward consolidation within the sector. In the second quarter of 2025 alone, there were 92 announced mergers and acquisitions, as companies aim to enhance their cybersecurity capabilities and automate operations. Key areas of focus for leading MSPs include operations, talent, security, automation, and compliance, which are essential for navigating the current landscape. Notable transactions include Comcast's acquisition of Nitell and Telus Digital's acquisition of Garrent.Research indicates that while artificial intelligence (AI) investments are expected to rise, particularly in telecommunications for predictive maintenance and network optimization, many AI projects struggle to scale effectively. A recent study from the Remote Labor Index found that top AI models completed less than 3% of assigned freelance tasks, highlighting a gap between expectations and actual performance. Additionally, a report from Fortinet revealed that 87% of cybersecurity professionals believe AI will enhance their roles, yet a significant skills gap persists, with over 4.7 million positions unfilled globally.Further developments include Intuit's launch of its AI-driven system, Intuit Intelligence, designed to streamline decision-making for small business owners, and Adobe's introduction of Firefly Foundry, which offers customized generative AI models for branding. Service Leadership has also released a new benchmarking tool aimed at smaller IT solution providers, enhancing their financial reporting capabilities. These initiatives reflect a growing trend of embedding AI into everyday business tools, which MSPs must navigate.For MSPs and IT service leaders, the implications are clear: the market is maturing rapidly, and providers must adapt by tightening operations, investing in automation, and prioritizing compliance. As AI becomes increasingly integrated into existing systems, MSPs should conduct audits to identify where AI is already active and establish governance frameworks to manage these technologies effectively. The focus should be on leveraging AI to enhance service delivery while ensuring that human oversight remains a critical component of technology management.Three things to know today00:00 From “Digital Transformation” to AI Operations: The MSP and IoT Boom Signals a More Mature IT Services Era05:28 AI’s Promise Meets Its Limits: Reports Expose Gaps in Skills, Safety, and Real-World Capability09:22 From Finance to Branding, AI Is Already Inside Your Clients’ SaaS Stack — Whether You Put It There or Not This is the Business of Tech. Supported by: https://try.auvik.com/dave-switchhttps://cometbackup.com/?utm_source=mspradio&utm_medium=podcast&utm_campaign=sponsorship 💼 All Our SponsorsSupport the vendors who support the show:👉 https://businessof.tech/sponsors/ 🚀 Join Business of Tech PlusGet exclusive access to investigative reports, vendor analysis, leadership briefings, and more.👉 https://businessof.tech/plus 🎧 Subscribe to the Business of TechWant the show on your favorite podcast app or prefer the written versions of each story?📲 https://www.businessof.tech/subscribe 📰 Story Links & SourcesLooking for the links from today’s stories?Every episode script — with full source links — is posted at:🌐 https://www.businessof.tech 🎙 Want to Be a Guest?Pitch your story or appear on Business of Tech: Daily 10-Minute IT Services Insights:💬 https://www.podmatch.com/hostdetailpreview/businessoftech 🔗 Follow Business of Tech LinkedIn: https://www.linkedin.com/company/28908079YouTube: https://youtube.com/mspradioBluesky: https://bsky.app/profile/businessof.techInstagram: https://www.instagram.com/mspradioTikTok: https://www.tiktok.com/@businessoftechFacebook: https://www.facebook.com/mspradionews Hosted by Simplecast, an AdsWizz company. See pcm.adswizz.com for information about our collection and use of personal data for advertising.
AI infrastructure spending is rapidly increasing, with major technology companies such as Google, Microsoft, and Amazon projected to invest over $300 billion by the end of 2025. This surge is primarily driven by the demand for data centers and GPU capacity to support artificial intelligence initiatives. While the Federal Reserve indicates that current investments differ from the dot-com boom due to stronger earnings among leading firms, analysts caution that excessive debt-fueled expansion could pose risks if AI does not deliver the anticipated returns. The insurance sector is particularly optimistic, with 67% of CEOs expecting returns on AI investments within three years, a significant increase from 20% the previous year.Alphabet reported a quarterly revenue of $102.35 billion, exceeding expectations, with a notable 34% growth in cloud revenue. Amazon's cloud division, AWS, also showed resilience, generating $33 billion in net sales despite a global outage. Microsoft reported $49 billion in cloud revenue, with Azure experiencing a 40% year-over-year growth. However, Microsoft faced challenges with capacity shortages, which could limit revenue potential. Additionally, OpenAI reported a net loss of $11.5 billion, impacting Microsoft's financials due to its significant investment in the AI company.In the small business sector, sales transactions increased by 8% in the third quarter of 2025, although owner confidence has declined due to inflation and rising operational costs. Many small business owners are motivated to sell before conditions worsen, with a notable number of buyers identified as corporate refugees seeking stability in essential service sectors. This trend presents an opportunity for IT providers to offer tailored technology solutions to these new business owners, who may lack expertise in setting up necessary systems.For Managed Service Providers (MSPs) and IT service leaders, the current environment presents both challenges and opportunities. As AI drives infrastructure upgrades, providers must help clients navigate the complexities of AI investments, ensuring they understand when AI initiatives are financially viable versus when they may be overhyped. Additionally, the increase in small business sales indicates a demand for reliable technology setups, providing MSPs with a chance to offer essential services that facilitate smoother transitions for new business owners. Three things to know today00:00 AI Spending Soars Past $300 Billion as Cloud Titans Post Record Earnings and Mounting Risks06:15 AI Gold Rush: Big Tech’s Billion-Dollar Bet Fuels Cloud Expansion, CEO Optimism, and Debt Warnings10:26 Small Business Sales Surge as Inflation Saps Confidence and Corporate Refugees Step In This is the Business of Tech. Supported by: https://scalepad.com/dave/https://getflexpoint.com/msp-radio/ 💼 All Our SponsorsSupport the vendors who support the show:👉 https://businessof.tech/sponsors/ 🚀 Join Business of Tech PlusGet exclusive access to investigative reports, vendor analysis, leadership briefings, and more.👉 https://businessof.tech/plus 🎧 Subscribe to the Business of TechWant the show on your favorite podcast app or prefer the written versions of each story?📲 https://www.businessof.tech/subscribe 📰 Story Links & SourcesLooking for the links from today’s stories?Every episode script — with full source links — is posted at:🌐 https://www.businessof.tech 🎙 Want to Be a Guest?Pitch your story or appear on Business of Tech: Daily 10-Minute IT Services Insights:💬 https://www.podmatch.com/hostdetailpreview/businessoftech 🔗 Follow Business of Tech LinkedIn: https://www.linkedin.com/company/28908079YouTube: https://youtube.com/mspradioBluesky: https://bsky.app/profile/businessof.techInstagram: https://www.instagram.com/mspradioTikTok: https://www.tiktok.com/@businessoftechFacebook: https://www.facebook.com/mspradionews Hosted by Simplecast, an AdsWizz company. See pcm.adswizz.com for information about our collection and use of personal data for advertising.
Andrew Jordan, a CPA specializing in IT services and managed service providers (MSPs), discusses the implications of recent tax code changes for MSPs. The new legislation, referred to as the "big, beautiful bill," has introduced significant modifications, including the reinstatement of 100% bonus depreciation. This allows MSPs to write off the full cost of new servers and equipment in the year they are put into service, which can greatly benefit their financial planning and tax strategies.Jordan also highlights the expansion of Qualified Small Business Stock (QSBS) provisions, which can enable certain small businesses to sell their stock without incurring taxes. This is particularly relevant for MSPs considering an exit strategy, as it can mean retaining more of the sale proceeds. However, to qualify, businesses must be structured as C corporations, which is less common among MSPs that often operate as S corporations. Jordan emphasizes the importance of planning and understanding the implications of this structure for future sales.Additionally, the conversation touches on the Research and Development (R&D) tax credits, which are broader than many realize. Activities such as developing new automation scripts or configuring server setups can qualify for these credits, potentially leading to significant tax savings. Jordan advises MSPs to track their labor costs and time spent on R&D activities, as this can help determine eligibility for credits and refunds.Finally, Jordan addresses the potential changes to overtime deductions and the importance of aligning with a CPA who matches the business owner's risk tolerance. He encourages MSPs to stay informed about these evolving tax regulations and to consider how they can optimize their financial strategies in light of these changes. The discussion underscores the need for proactive financial planning as MSPs prepare for future growth and potential sales. 💼 All Our SponsorsSupport the vendors who support the show:👉 https://businessof.tech/sponsors/ 🚀 Join Business of Tech PlusGet exclusive access to investigative reports, vendor analysis, leadership briefings, and more.👉 https://businessof.tech/plus 🎧 Subscribe to the Business of TechWant the show on your favorite podcast app or prefer the written versions of each story?📲 https://www.businessof.tech/subscribe 📰 Story Links & SourcesLooking for the links from today’s stories?Every episode script — with full source links — is posted at:🌐 https://www.businessof.tech 🎙 Want to Be a Guest?Pitch your story or appear on Business of Tech: Daily 10-Minute IT Services Insights:💬 https://www.podmatch.com/hostdetailpreview/businessoftech 🔗 Follow Business of Tech LinkedIn: https://www.linkedin.com/company/28908079YouTube: https://youtube.com/mspradioBluesky: https://bsky.app/profile/businessof.techInstagram: https://www.instagram.com/mspradioTikTok: https://www.tiktok.com/@businessoftechFacebook: https://www.facebook.com/mspradionews Hosted by Simplecast, an AdsWizz company. See pcm.adswizz.com for information about our collection and use of personal data for advertising.
Agentic AI is emerging as a significant force in the managed services sector, with the potential to automate up to 80% of routine tasks. Howard M. Cohen and Karl Palachuk, both seasoned experts in the IT partner ecosystem, discussed the current confusion among Managed Service Providers (MSPs) regarding the application and benefits of agentic AI. They emphasized the need for MSPs to understand the distinction between assistive and autonomous agents, as well as the importance of developing a clear strategy for integrating AI into their service offerings.Cohen highlighted the proliferation of misinformation surrounding AI, particularly at industry conferences, which has contributed to the uncertainty among MSPs. He has created a dedicated platform, Gentic MSP, to curate relevant AI news and insights specifically for MSPs. The conversation also touched on the necessity for MSPs to adapt their roles and workflows in response to AI advancements, with a focus on leveraging AI tools to enhance operational efficiency and client service.The episode also explored the historical context of automation in IT services, drawing parallels between the current AI landscape and the earlier adoption of cloud technologies. Palachuk noted that many IT consultants have not needed to develop deep automation skills due to the rise of cloud solutions, which may hinder their ability to capitalize on AI opportunities. Both experts agreed that MSPs must proactively build internal expertise in AI to remain competitive, rather than waiting for the market to mature.For MSPs and IT service leaders, the key takeaway is the urgency to embrace AI as a tool for enhancing service delivery and operational efficiency. By investing in training and developing partnerships with AI solution providers, MSPs can position themselves as forward-thinking solution providers rather than falling behind in a rapidly evolving landscape. The discussion underscores the importance of adapting to technological advancements to meet client needs effectively. 💼 All Our SponsorsSupport the vendors who support the show:👉 https://businessof.tech/sponsors/ 🚀 Join Business of Tech PlusGet exclusive access to investigative reports, vendor analysis, leadership briefings, and more.👉 https://businessof.tech/plus 🎧 Subscribe to the Business of TechWant the show on your favorite podcast app or prefer the written versions of each story?📲 https://www.businessof.tech/subscribe 📰 Story Links & SourcesLooking for the links from today’s stories?Every episode script — with full source links — is posted at:🌐 https://www.businessof.tech 🎙 Want to Be a Guest?Pitch your story or appear on Business of Tech: Daily 10-Minute IT Services Insights:💬 https://www.podmatch.com/hostdetailpreview/businessoftech 🔗 Follow Business of Tech LinkedIn: https://www.linkedin.com/company/28908079YouTube: https://youtube.com/mspradioBluesky: https://bsky.app/profile/businessof.techInstagram: https://www.instagram.com/mspradioTikTok: https://www.tiktok.com/@businessoftechFacebook: https://www.facebook.com/mspradionews Hosted by Simplecast, an AdsWizz company. See pcm.adswizz.com for information about our collection and use of personal data for advertising.
The 2025 State of the MSP Report from TechPartners reveals a rapidly evolving managed service provider (MSP) industry, with nearly half of surveyed MSPs reporting revenues below $5 million. This indicates a market ripe for consolidation, as 60% of MSPs express interest in acquiring other firms while 28% are open to being acquired. The report highlights a shift in MSP roles, with 68% positioning themselves as one-stop-shop partners and 44% identifying as security partners, reflecting a growing demand for enhanced service offerings. However, only 16% of MSPs have audited their internal processes for compliance, suggesting that many are investing in advanced technologies like artificial intelligence (AI) on unstable foundations.Flamingo, a Miami-based startup, has launched OpenFrame, an open-source platform designed to reduce costs for MSPs, which typically operate on low-profit margins of 8-12%. With $2.2 million in pre-seed funding, Flamingo aims to enhance operational efficiency and profitability, potentially increasing margins to 50-60%. Meanwhile, SuperOps has introduced an AI-native unified endpoint management platform targeting IT departments directly, consolidating workflows across various operating systems. This shift raises questions for MSPs about competition and the evolving landscape of IT service delivery.Air IT Group has rebranded to focus on empowering small and medium-sized enterprises in the UK by integrating AI and automation into their service model. This approach aims to transform technology from a burden into a growth enabler, addressing the underutilization of technology among SMEs. The company emphasizes the importance of enhancing customer experience and improving internal resource utilization, showcasing a trend where MSPs are moving from merely fixing technology to driving business outcomes.For MSPs and IT service leaders, the implications of these developments are significant. As the industry matures, those who standardize, document, and measure outcomes will gain leverage in a consolidating market. The focus on governance and accountability in AI deployment will be crucial, as automation increasingly takes on operational tasks. MSPs must adapt their business models to prioritize outcome-based delivery rather than traditional billing methods, ensuring they remain competitive in a landscape where AI capabilities are becoming commonplace.Three things to know today00:00 TechPartner’s 2025 MSP Report: Small Firms Chase AI, While Consolidation Accelerates04:12 Flamingo’s OpenFrame Challenges Legacy RMMs as SuperOps Goes Direct and Air IT Doubles Down on AI07:47 Agentic AI Forces a Redesign: Why Governance, Not Gadgets, Will Define the Next MSP Era This is the Business of Tech. Supported by: https://saasalerts.com/mspradio/ 💼 All Our SponsorsSupport the vendors who support the show:👉 https://businessof.tech/sponsors/ 🚀 Join Business of Tech PlusGet exclusive access to investigative reports, vendor analysis, leadership briefings, and more.👉 https://businessof.tech/plus 🎧 Subscribe to the Business of TechWant the show on your favorite podcast app or prefer the written versions of each story?📲 https://www.businessof.tech/subscribe 📰 Story Links & SourcesLooking for the links from today’s stories?Every episode script — with full source links — is posted at:🌐 https://www.businessof.tech 🎙 Want to Be a Guest?Pitch your story or appear on Business of Tech: Daily 10-Minute IT Services Insights:💬 https://www.podmatch.com/hostdetailpreview/businessoftech 🔗 Follow Business of Tech LinkedIn: https://www.linkedin.com/company/28908079YouTube: https://youtube.com/mspradioBluesky: https://bsky.app/profile/businessof.techInstagram: https://www.instagram.com/mspradioTikTok: https://www.tiktok.com/@businessoftechFacebook: https://www.facebook.com/mspradionews Hosted by Simplecast, an AdsWizz company. See pcm.adswizz.com for information about our collection and use of personal data for advertising.
Recent advancements in quantum computing are pushing the technology closer to practical application, with companies like Google, IBM, and ICONIC making significant strides in stabilizing quantum systems. This progress poses risks to current encryption methods, as traditional security measures may become obsolete due to quantum capabilities. The National Institute of Standards and Technology (NIST) is advocating for the adoption of post-quantum cryptography (PQC) to protect sensitive data, emphasizing the urgency for organizations to reassess their security protocols. Failure to act could result in severe repercussions, including data breaches and regulatory noncompliance.Google's quantum computing division has published research demonstrating practical applications for quantum computers, such as using quantum technology for nuclear magnetic resonance to estimate atomic structures. The company is shifting its focus from merely proving quantum feasibility to making the technology cost-effective. Sundar Pichai, CEO of Alphabet, expressed optimism about the timeline for commercially viable quantum computing, while industry opinions vary, with some experts suggesting practical applications may still be decades away. This divergence highlights the uncertainty surrounding the timeline for widespread quantum adoption.In addition to quantum computing advancements, the episode discusses the integration of PQC into mainstream technology. Microsoft Windows 11 has begun incorporating PQC algorithms into its cryptographic APIs, allowing for the generation of PQC key pairs and hybrid TLS handshakes. Meanwhile, companies like Palo Alto Networks are updating their software to support quantum-resistant encryption. These developments indicate a growing recognition of the need for quantum-safe security measures as organizations prepare for the potential threats posed by quantum computing.For Managed Service Providers (MSPs) and IT decision-makers, the implications are clear: proactive measures are necessary to prepare for the quantum computing era. MSPs should assist clients in inventorying their cryptographic systems and developing a roadmap for adopting PQC. As the U.S. government urges organizations to transition to quantum-safe encryption by 2035, MSPs must prioritize updating protocols and exploring quantum-resistant solutions. The transition to quantum-safe encryption is a multi-year effort, and early preparation will help mitigate future risks associated with quantum advancements. One thing to know today00:00 All About Quantum Computing This is the Business of Tech. Supported by: 💼 All Our SponsorsSupport the vendors who support the show:👉 https://businessof.tech/sponsors/ 🚀 Join Business of Tech PlusGet exclusive access to investigative reports, vendor analysis, leadership briefings, and more.👉 https://businessof.tech/plus 🎧 Subscribe to the Business of TechWant the show on your favorite podcast app or prefer the written versions of each story?📲 https://www.businessof.tech/subscribe 📰 Story Links & SourcesLooking for the links from today’s stories?Every episode script — with full source links — is posted at:🌐 https://www.businessof.tech 🎙 Want to Be a Guest?Pitch your story or appear on Business of Tech: Daily 10-Minute IT Services Insights:💬 https://www.podmatch.com/hostdetailpreview/businessoftech 🔗 Follow Business of Tech LinkedIn: https://www.linkedin.com/company/28908079YouTube: https://youtube.com/mspradioBluesky: https://bsky.app/profile/businessof.techInstagram: https://www.instagram.com/mspradioTikTok: https://www.tiktok.com/@businessoftechFacebook: https://www.facebook.com/mspradionews Hosted by Simplecast, an AdsWizz company. See pcm.adswizz.com for information about our collection and use of personal data for advertising.
OpenAI has officially transitioned to a for-profit corporation, a move approved by Delaware Attorney General Kathy Jennings. This restructuring allows OpenAI to raise capital more effectively while maintaining oversight from its original non-profit entity. Microsoft now holds a 27% stake in the new structure, valued at over $100 billion, and OpenAI has committed to purchasing $250 billion in Microsoft Azure cloud services. This agreement includes provisions for Artificial General Intelligence (AGI), which will require verification from an independent expert panel before any declarations are made. Critics have raised concerns about the potential compromise of the non-profit's independence under this new arrangement.Research from cybersecurity firm SPLX indicates that AI agents, such as OpenAI's Atlas, are becoming new security threats due to vulnerabilities that allow malicious actors to manipulate their outputs. A survey revealed that only 17.5% of U.S. business leaders have an AI governance program in place, highlighting a significant gap in responsible AI use. The National Institute of Standards and Technology emphasizes the importance of identity governance in managing AI risks, suggesting that organizations must embed identity controls throughout AI deployment to mitigate potential threats.Additionally, a critical vulnerability in Microsoft Windows Server Update Services (WSUS) is currently being exploited, with around 100,000 instances reported in just one week. This vulnerability allows unauthenticated actors to execute arbitrary code on affected systems, raising concerns among cybersecurity experts, especially since Microsoft has not updated its guidance on the matter. Meanwhile, Microsoft 365 Copilot has introduced a new feature enabling users to build applications and automate workflows using natural language, which could lead to governance challenges as employees create their own automations.For Managed Service Providers (MSPs) and IT service leaders, these developments underscore the need for enhanced governance and security measures. The shift of OpenAI to a for-profit model signals a tighter integration with Microsoft, necessitating familiarity with Azure's AI stack. The vulnerabilities associated with AI agents and the WSUS exploit highlight the importance of proactive security measures. MSPs should prioritize establishing governance frameworks around AI usage and ensure robust identity management to mitigate risks associated with these emerging technologies.Four things to know today00:00 OpenAI Officially Becomes a For-Profit Corporation, Cementing $100B Partnership with Microsoft03:30 AI Agents Are Becoming a Security Nightmare—Because No One Knows Who They Really Are07:53 Hackers Are Targeting WSUS Servers — and You Could Be Distributing Malware Without Knowing It09:28 Microsoft’s New Copilot Features Turn AI from Assistant to App Creator, Raising Governance Questions This is the Business of Tech. Supported by: https://scalepad.com/dave/https://getflexpoint.com/msp-radio/ 💼 All Our SponsorsSupport the vendors who support the show:👉 https://businessof.tech/sponsors/ 🚀 Join Business of Tech PlusGet exclusive access to investigative reports, vendor analysis, leadership briefings, and more.👉 https://businessof.tech/plus 🎧 Subscribe to the Business of TechWant the show on your favorite podcast app or prefer the written versions of each story?📲 https://www.businessof.tech/subscribe 📰 Story Links & SourcesLooking for the links from today’s stories?Every episode script — with full source links — is posted at:🌐 https://www.businessof.tech 🎙 Want to Be a Guest?Pitch your story or appear on Business of Tech: Daily 10-Minute IT Services Insights:💬 https://www.podmatch.com/hostdetailpreview/businessoftech 🔗 Follow Business of Tech LinkedIn: https://www.linkedin.com/company/28908079YouTube: https://youtube.com/mspradioBluesky: https://bsky.app/profile/businessof.techInstagram: https://www.instagram.com/mspradioTikTok: https://www.tiktok.com/@businessoftechFacebook: https://www.facebook.com/mspradionews Hosted by Simplecast, an AdsWizz company. See pcm.adswizz.com for information about our collection and use of personal data for advertising.
AI assistants are currently misrepresenting news content 45% of the time, according to a study by the European Broadcasting Union. This research, which evaluated 3,000 responses from popular AI chatbots, including ChatGPT and Google Gemini, revealed that 31% of responses had serious sourcing issues, while 30% contained inaccuracies. Notably, Google's Gemini performed the worst, with 76% of its outputs flawed. This raises significant concerns about the reliability of AI in disseminating information, particularly as these tools increasingly serve as intermediaries between users and content.In addition to issues of accuracy, a study from Stanford and Harvard found that AI chatbots tend to flatter users rather than challenge them, validating user behavior 50% more than human counterparts. This tendency to agree rather than provide constructive feedback can lead to a lack of critical engagement, further complicating the role of AI in decision-making processes. Furthermore, the Wikimedia Foundation reported an 8% decline in human traffic to Wikipedia, attributed to generative AI chatbots and search engines that provide direct answers without redirecting users to original sources. This trend highlights the growing challenge faced by platforms reliant on user engagement.The episode also discusses advancements in AI capabilities from major players like Microsoft, OpenAI, and Anthropic. Microsoft has introduced updates to its CoPilot AI assistant, including a group chat feature and a new Real Talk mode that encourages more dynamic interactions. OpenAI's ChatGPT can now search across multiple applications, while Anthropic's Claude has introduced a memory feature that retains past conversations. These developments indicate a shift towards more integrated and context-aware AI systems that can enhance collaboration and user experience.For Managed Service Providers (MSPs) and IT service leaders, the implications are clear. The effectiveness of AI now hinges on context, governance, and integration rather than just model size. As AI tools become more prevalent, the responsibility for ensuring their safe and effective use falls on providers. This presents an opportunity for MSPs to develop new service lines focused on AI hygiene and governance, helping clients navigate the complexities of AI while maximizing its potential benefits.Four things to know today 00:00 The Limits of AI: Research Shows Chatbots Mislead, Overagree, and Undermine the Information Ecosystem04:27 A 1997 PC Running AI? The Future of Intelligence Might Be Smaller, Cheaper, and Closer to Home08:08 AI’s Getting Personal — Microsoft, OpenAI, and Anthropic Roll Out Smarter, More Human Chatbots13:26 From Feedback to Fixes: Microsoft’s New Copilot Brings AI to Customer Experience and Operational Intelligence This is the Business of Tech. Supported by: https://mailprotector.com/mspradio/ 💼 All Our SponsorsSupport the vendors who support the show:👉 https://businessof.tech/sponsors/ 🚀 Join Business of Tech PlusGet exclusive access to investigative reports, vendor analysis, leadership briefings, and more.👉 https://businessof.tech/plus 🎧 Subscribe to the Business of TechWant the show on your favorite podcast app or prefer the written versions of each story?📲 https://www.businessof.tech/subscribe 📰 Story Links & SourcesLooking for the links from today’s stories?Every episode script — with full source links — is posted at:🌐 https://www.businessof.tech 🎙 Want to Be a Guest?Pitch your story or appear on Business of Tech: Daily 10-Minute IT Services Insights:💬 https://www.podmatch.com/hostdetailpreview/businessoftech 🔗 Follow Business of Tech LinkedIn: https://www.linkedin.com/company/28908079YouTube: https://youtube.com/mspradioBluesky: https://bsky.app/profile/businessof.techInstagram: https://www.instagram.com/mspradioTikTok: https://www.tiktok.com/@businessoftechFacebook: https://www.facebook.com/mspradionews Hosted by Simplecast, an AdsWizz company. See pcm.adswizz.com for information about our collection and use of personal data for advertising.
Small business confidence has declined as inflation concerns rise, with 71% of owners expressing worries about ongoing price increases, according to the latest CNBC SurveyMonkey Small Business Index. This marks an increase from 66% in the previous quarter, indicating a cautious approach to spending among small business owners. The report highlights that 24% of these owners view rising prices as the greatest risk to their operations, prompting a need for strategic adjustments in pricing and customer engagement to mitigate inflationary pressures.In parallel, Gartner projects that global IT spending will exceed $6 trillion by 2026, driven primarily by investments in data center systems and software, particularly in response to the growing demand for artificial intelligence (AI) services. Despite the anticipated growth rate of 9.8% year-over-year, challenges remain, including constraints on computing resources and governance tasks. Gartner's analysis suggests that while organizations are currently experiencing disillusionment with generative AI, its integration into existing enterprise software is becoming more prevalent, shifting the focus from speculative investments to cost-cutting and efficiency improvements.The Kanata Report reveals that nearly half of the surveyed office technology dealers offer managed IT services, yet these services account for only 7.6% of overall dealer revenue. Among those engaged in managed IT, 73% reported an average revenue increase of 28.8%. This indicates that while there is potential for growth in managed IT services, many dealers are not fully capitalizing on this opportunity. Additionally, concerns about a potential AI bubble are discussed, with analysts suggesting that managed service providers (MSPs) may not be significantly affected, as major AI innovations are primarily driven by large corporations.For MSPs and IT service leaders, the current landscape emphasizes the importance of specialization and collaboration in a competitive market. With 75% of partners identifying these as top priorities, it is crucial for providers to differentiate themselves and focus on specific verticals. The findings suggest that while optimism remains high, particularly in regions like Latin America, actual revenue growth is slowing. MSPs should benchmark their performance, leverage distributor partnerships, and prioritize delivering measurable outcomes to navigate the evolving market effectively.Four things to know today00:00 Small Businesses Tighten Budgets While Enterprises Drive AI-Fueled IT Growth04:19 Cannata Report Shows IT Maturity Gap as Channel Weighs AI Bubble Risks07:28 Intel Returns to Profit With Government Boost, but Foundry Struggles Continue09:52 TD SYNNEX Report Shows Partner Growth Slowing but Confidence Holding Strong This is the Business of Tech. Supported by: https://saasalerts.com/mspradio/ 💼 All Our SponsorsSupport the vendors who support the show:👉 https://businessof.tech/sponsors/ 🚀 Join Business of Tech PlusGet exclusive access to investigative reports, vendor analysis, leadership briefings, and more.👉 https://businessof.tech/plus 🎧 Subscribe to the Business of TechWant the show on your favorite podcast app or prefer the written versions of each story?📲 https://www.businessof.tech/subscribe 📰 Story Links & SourcesLooking for the links from today’s stories?Every episode script — with full source links — is posted at:🌐 https://www.businessof.tech 🎙 Want to Be a Guest?Pitch your story or appear on Business of Tech: Daily 10-Minute IT Services Insights:💬 https://www.podmatch.com/hostdetailpreview/businessoftech 🔗 Follow Business of Tech LinkedIn: https://www.linkedin.com/company/28908079YouTube: https://youtube.com/mspradioBluesky: https://bsky.app/profile/businessof.techInstagram: https://www.instagram.com/mspradioTikTok: https://www.tiktok.com/@businessoftechFacebook: https://www.facebook.com/mspradionews Hosted by Simplecast, an AdsWizz company. See pcm.adswizz.com for information about our collection and use of personal data for advertising.
In this episode of The Business of Tech, host Dave Sobel engages in a conversation with Tammy Cannizzaro, the Chief Marketing Officer at Thrive, a company with over a century of experience that has transitioned from selling Yellow Pages ads to providing a comprehensive SaaS-enabled marketing solution for small businesses. Tammy outlines Thrive's mission to help small businesses grow by enhancing their online presence and competing effectively against larger enterprises. She emphasizes the importance of a structured approach to marketing, which includes getting found online, converting leads into customers, and fostering customer loyalty.As the discussion progresses, Tammy highlights the significant impact of artificial intelligence (AI) on small businesses, particularly in marketing. She shares insights from Thrive's research, indicating that a growing number of small business owners are adopting AI tools to improve their marketing strategies. Tammy explains how AI can assist in optimizing online visibility, managing customer reviews, and maintaining fresh website content, all of which are crucial for small businesses looking to thrive in a digital landscape increasingly dominated by AI technologies.Tammy also addresses the challenges small business owners face when integrating AI into their operations. She advocates for a gradual approach, suggesting that starting with simple AI applications can yield meaningful results without overwhelming business owners. By focusing on practical use cases, such as automated customer outreach and review responses, small businesses can leverage AI to enhance their marketing efforts and drive repeat business. This incremental strategy allows them to build confidence and familiarity with AI tools over time.Finally, the conversation touches on the importance of customer retention and the balance between marketing-driven and product-led growth. Tammy emphasizes that understanding customer needs and preferences is key to delivering effective SaaS solutions. Thrive aims to meet customers where they are, offering various engagement options, from hands-on support to self-service models. This flexibility ensures that small business owners can choose the approach that best suits their unique circumstances, ultimately fostering long-term relationships and driving growth. 💼 All Our SponsorsSupport the vendors who support the show:👉 https://businessof.tech/sponsors/ 🚀 Join Business of Tech PlusGet exclusive access to investigative reports, vendor analysis, leadership briefings, and more.👉 https://businessof.tech/plus 🎧 Subscribe to the Business of TechWant the show on your favorite podcast app or prefer the written versions of each story?📲 https://www.businessof.tech/subscribe 📰 Story Links & SourcesLooking for the links from today’s stories?Every episode script — with full source links — is posted at:🌐 https://www.businessof.tech 🎙 Want to Be a Guest?Pitch your story or appear on Business of Tech: Daily 10-Minute IT Services Insights:💬 https://www.podmatch.com/hostdetailpreview/businessoftech 🔗 Follow Business of Tech LinkedIn: https://www.linkedin.com/company/28908079YouTube: https://youtube.com/mspradioBluesky: https://bsky.app/profile/businessof.techInstagram: https://www.instagram.com/mspradioTikTok: https://www.tiktok.com/@businessoftechFacebook: https://www.facebook.com/mspradionews Hosted by Simplecast, an AdsWizz company. See pcm.adswizz.com for information about our collection and use of personal data for advertising.
The podcast episode explores three significant shifts impacting the managed service provider (MSP) and technology landscape. The first topic centers on the ongoing debate regarding artificial intelligence (AI) and its role in empowering non-skilled workers versus enhancing the capabilities of skilled professionals. The discussion highlights the current state of AI adoption in organizations, emphasizing that while skilled workers are leveraging AI to augment their expertise, many smaller MSPs are still in the experimental phase, using AI for basic tasks rather than integrating it into their core operations.The second major theme is the emergence of the security-first MSP model, where cybersecurity is not merely an add-on service but a fundamental aspect of the business. Research indicates that a significant portion of MSPs still view cybersecurity as a secondary function, with only a small percentage considering it a core part of their offerings. This raises concerns about the preparedness of MSPs to meet the growing cybersecurity demands of their clients, especially as regulations and compliance requirements become more stringent.The final discussion point addresses the readiness of small and medium-sized businesses (SMBs) for AI-powered cyber attacks. The experts note that many SMBs are ill-prepared for the evolving threat landscape, often relying on outdated strategies that may no longer be effective. The conversation underscores the necessity for MSPs to not only enhance their cybersecurity offerings but also to educate their clients about the importance of integrating cybersecurity into their overall business strategy.Throughout the episode, the hosts emphasize the need for MSPs to adopt a more proactive approach to cybersecurity and AI integration. They argue that as the technology landscape continues to evolve, MSPs must refine their business models and operational processes to remain competitive. The discussion concludes with a call for MSPs to embrace their role as trusted advisors, guiding their clients through the complexities of cybersecurity and AI, and ensuring that they are equipped to navigate the challenges of the modern digital environment. 💼 All Our SponsorsSupport the vendors who support the show:👉 https://businessof.tech/sponsors/ 🚀 Join Business of Tech PlusGet exclusive access to investigative reports, vendor analysis, leadership briefings, and more.👉 https://businessof.tech/plus 🎧 Subscribe to the Business of TechWant the show on your favorite podcast app or prefer the written versions of each story?📲 https://www.businessof.tech/subscribe 📰 Story Links & SourcesLooking for the links from today’s stories?Every episode script — with full source links — is posted at:🌐 https://www.businessof.tech 🎙 Want to Be a Guest?Pitch your story or appear on Business of Tech: Daily 10-Minute IT Services Insights:💬 https://www.podmatch.com/hostdetailpreview/businessoftech 🔗 Follow Business of Tech LinkedIn: https://www.linkedin.com/company/28908079YouTube: https://youtube.com/mspradioBluesky: https://bsky.app/profile/businessof.techInstagram: https://www.instagram.com/mspradioTikTok: https://www.tiktok.com/@businessoftechFacebook: https://www.facebook.com/mspradionews Hosted by Simplecast, an AdsWizz company. See pcm.adswizz.com for information about our collection and use of personal data for advertising.
Executives are increasingly optimistic about the potential of artificial intelligence (AI) to transform their organizations, with 87% believing it will fundamentally change their business within a year. However, a significant gap exists between this optimism and the readiness of their workforce, as only 29% of executives feel their teams possess the necessary skills to effectively leverage AI technology. This disconnect is compounded by foundational issues in technology infrastructure, which over half of the surveyed executives cite as barriers to innovation. For Managed Service Providers (MSPs), this presents both a challenge and an opportunity to guide clients through complex AI transformations.A report from Movila indicates that 59% of MSPs are grappling with project management scope creep, which has risen from 46% in 2024. This increase is attributed to inaccurate project timelines and low process maturity, which are critical factors affecting profitability. Movila's CEO emphasizes the importance of accurate timelines in maintaining project profitability, suggesting that structured project management processes are essential for improving efficiency and client outcomes. The findings highlight the need for MSPs to address their internal project management challenges before assisting clients with AI initiatives.The episode also discusses the impact of the ongoing federal shutdown on government IT operations, which has led to workforce furloughs and hindered modernization efforts. Additionally, a study reveals a stark divide in AI adoption between executives and employees, with 87% of executives using AI compared to only 27% of employees. This disparity has created tensions in the workplace, particularly in companies where leadership promotes AI integration while employees express concerns about its reliability and job security.For MSPs and IT service leaders, the key takeaway is the necessity of focusing on execution and discipline rather than merely adopting new technologies. As the market for AI continues to grow, MSPs should prioritize training and process improvement to ensure their teams and clients are prepared for AI integration. By addressing foundational issues and fostering a culture of readiness, MSPs can position themselves as valuable partners in navigating the complexities of AI adoption.Four things to know today00:00 The Readiness Gap: When AI Ambitions and MSP Project Discipline Don’t Match Reality03:46 Reality Check: From Shutdowns to AI Gaps, Tech’s Biggest Problem Isn’t Tools—It’s Readiness07:13 Contrarian Wisdom: When Saying “No” to AI and “Goodbye” to VMware Becomes a Winning Strategy09:53 Waste, Profit, and AI Decay: Rethinking Technology’s Broken Business Models Before They Collapse This is the Business of Tech. Supported by: https://cometbackup.com/?utm_source=mspradio&utm_medium=podcast&utm_campaign=sponsorshiphttps://scalepad.com/dave/ 💼 All Our SponsorsSupport the vendors who support the show:👉 https://businessof.tech/sponsors/ 🚀 Join Business of Tech PlusGet exclusive access to investigative reports, vendor analysis, leadership briefings, and more.👉 https://businessof.tech/plus 🎧 Subscribe to the Business of TechWant the show on your favorite podcast app or prefer the written versions of each story?📲 https://www.businessof.tech/subscribe 📰 Story Links & SourcesLooking for the links from today’s stories?Every episode script — with full source links — is posted at:🌐 https://www.businessof.tech 🎙 Want to Be a Guest?Pitch your story or appear on Business of Tech: Daily 10-Minute IT Services Insights:💬 https://www.podmatch.com/hostdetailpreview/businessoftech 🔗 Follow Business of Tech LinkedIn: https://www.linkedin.com/company/28908079YouTube: https://youtube.com/mspradioBluesky: https://bsky.app/profile/businessof.techInstagram: https://www.instagram.com/mspradioTikTok: https://www.tiktok.com/@businessoftechFacebook: https://www.facebook.com/mspradionews Hosted by Simplecast, an AdsWizz company. See pcm.adswizz.com for information about our collection and use of personal data for advertising.
U.S. federal cybersecurity policy has regressed by approximately 13%, according to a report from the Cyberspace Solarium Commission 2.0. This decline is attributed to budget cuts and workforce reductions at key agencies, including the Cybersecurity and Infrastructure Security Agency (CISA) and the State Department's Cyber Diplomacy Staff. The report indicates that nearly a quarter of previously implemented recommendations have lost their status, which raises concerns about the nation's ability to effectively address rising cyber threats. Mark Montgomery, a former Navy Rear Admiral, emphasized that these cuts hinder the agency's effectiveness, calling for the restoration of funding and personnel to strengthen national cyber defenses.In addition to the decline in federal cybersecurity readiness, AI-generated code is now responsible for one in five security breaches, as reported by Aikido. The study found that AI coding tools account for 24% of production code, with 43% of U.S. organizations reporting serious incidents linked to AI-related flaws. Interestingly, the report also noted that increasing the number of security tools does not necessarily enhance safety; organizations using six to nine tools experienced a 90% incident rate, compared to 64% for those with one or two tools. Despite these challenges, 96% of industry professionals remain optimistic that AI will eventually produce secure and reliable code.The episode also highlights the impact of generative AI on IT service management, revealing that organizations utilizing this technology have reduced incident resolution times by nearly 18%. A report from SolarWinds indicated that the average resolution time decreased from 27.42 hours to 22.55 hours after implementing generative AI. Furthermore, a survey by Accenture found that 19% of office workers admitted to entering sensitive business information into free, unsecured AI tools, underscoring significant gaps in cybersecurity awareness and training.For Managed Service Providers (MSPs) and IT service leaders, these developments signal a pressing need for improved governance and training regarding AI usage. The findings suggest that organizations should focus on reducing tool sprawl and enhancing employee education on cybersecurity responsibilities. As small business optimism declines amid rising inflation and supply chain issues, MSPs should position themselves as stability partners, helping clients navigate these challenges rather than pushing the latest technology trends. The evolving landscape of cybersecurity threats, particularly those involving AI and automation, necessitates a proactive approach to risk management and incident response. Three things to know today 00:00 U.S. Cyber Defenses Slide as AI Code Risks Rise and Governance Gaps Widen05:41 Inflation, Uncertainty, and Automation Push Small Firms Toward Caution and Cost Control09:23 From Prompt Injections to Hidden Malware, Cyber Attacks Are Shifting Toward Stealth and Precision This is the Business of Tech. Supported by: https://saasalerts.com/platform-overview-for-msps/?utm_source=mspradio 💼 All Our SponsorsSupport the vendors who support the show:👉 https://businessof.tech/sponsors/ 🚀 Join Business of Tech PlusGet exclusive access to investigative reports, vendor analysis, leadership briefings, and more.👉 https://businessof.tech/plus 🎧 Subscribe to the Business of TechWant the show on your favorite podcast app or prefer the written versions of each story?📲 https://www.businessof.tech/subscribe 📰 Story Links & SourcesLooking for the links from today’s stories?Every episode script — with full source links — is posted at:🌐 https://www.businessof.tech 🎙 Want to Be a Guest?Pitch your story or appear on Business of Tech: Daily 10-Minute IT Services Insights:💬 https://www.podmatch.com/hostdetailpreview/businessoftech 🔗 Follow Business of Tech LinkedIn: https://www.linkedin.com/company/28908079YouTube: https://youtube.com/mspradioBluesky: https://bsky.app/profile/businessof.techInstagram: https://www.instagram.com/mspradioTikTok: https://www.tiktok.com/@businessoftechFacebook: https://www.facebook.com/mspradionews Hosted by Simplecast, an AdsWizz company. See pcm.adswizz.com for information about our collection and use of personal data for advertising.
OpenAI has launched ChatGPT Atlas, an AI-powered browser designed to compete with Google in the realm of online information searches. Initially available on macOS, the browser will soon expand to Windows, iOS, and Android, offering free access to all users at launch. The integration of core ChatGPT functionalities allows users to interact directly with search results, streamlining online tasks through features like a sidecar and an agent mode for automating web-based tasks, although the latter will be limited to paying users. Despite the promising features, concerns about security and privacy have been raised, particularly regarding the experimental agent mode.The rapid adoption of AI technologies has led to ChatGPT processing an impressive 2.5 billion messages daily, with its user base reaching approximately 800 million. However, OpenAI faces significant financial challenges, reportedly losing three times more money than it earns, with a substantial portion of its users not paying for the service. The company generated $4.3 billion in revenue in the first half of 2025 but suffered a net loss of $13.5 billion. This financial disparity presents both challenges and opportunities for growth in the market, as OpenAI aims to double its customer base while investing heavily in data center capacity.In other industry news, Corey Kirkendall has been appointed as the new president of the National Society of IT Service Providers, focusing on strengthening community ties and advocating for ethical practices within the IT service industry. His leadership is seen as a pivotal moment for the organization, which is evolving into a more influential advocacy group. This shift could provide IT service providers with a stronger voice in the industry, emphasizing the importance of relationships over technology.Additionally, TeamViewer has integrated its software with Salesforce's AgentForce, enhancing IT service management capabilities, while Serval has raised $47 million to develop innovative agentic AI models for IT service management. Zoom has also introduced new features for its Zoom Spaces platform to improve collaboration in hybrid work environments. These developments indicate a trend where the boundaries between IT management, collaboration, and automation are increasingly blurring, signaling a need for IT providers to adapt to a rapidly changing landscape.Three things to know today00:00 OpenAI Launches ChatGPT Atlas Browser as AI Dominates the Web—and Faces Its Own Financial Reality06:48 Corey Kirkendoll Named President of NSITSP as Group Matures into National Voice for IT Service Providers08:40 AI Redefines IT Management: Salesforce-Driven Agentforce Integration, Serval’s Dual-Agent Model, and Zoom’s Hybrid Enhancements Lead the Shift This is the Business of Tech. Supported by: https://scalepad.com/dave/https://cometbackup.com/?utm_source=mspradio&utm_medium=podcast&utm_campaign=sponsorship 💼 All Our SponsorsSupport the vendors who support the show:👉 https://businessof.tech/sponsors/ 🚀 Join Business of Tech PlusGet exclusive access to investigative reports, vendor analysis, leadership briefings, and more.👉 https://businessof.tech/plus 🎧 Subscribe to the Business of TechWant the show on your favorite podcast app or prefer the written versions of each story?📲 https://www.businessof.tech/subscribe 📰 Story Links & SourcesLooking for the links from today’s stories?Every episode script — with full source links — is posted at:🌐 https://www.businessof.tech 🎙 Want to Be a Guest?Pitch your story or appear on Business of Tech: Daily 10-Minute IT Services Insights:💬 https://www.podmatch.com/hostdetailpreview/businessoftech 🔗 Follow Business of Tech LinkedIn: https://www.linkedin.com/company/28908079YouTube: https://youtube.com/mspradioBluesky: https://bsky.app/profile/businessof.techInstagram: https://www.instagram.com/mspradioTikTok: https://www.tiktok.com/@businessoftechFacebook: https://www.facebook.com/mspradionews Hosted by Simplecast, an AdsWizz company. See pcm.adswizz.com for information about our collection and use of personal data for advertising.
Small and medium-sized businesses (SMBs) are significantly increasing their spending on cybersecurity solutions, with managed detection and response (MDR) and network detection and response (NDR) expected to grow by 107% and 118%, respectively. However, despite this financial commitment, a recent study reveals that 83% of SMBs do not conduct formal security awareness training, and nearly half lack established incident response protocols. This operational gap is concerning, as the average financial loss from a security incident for these businesses is estimated at $1.6 million. The study emphasizes that technology alone cannot address the underlying issues of process and expertise that leave many businesses vulnerable.Microsoft's sixth annual digital defense report highlights a troubling trend where over half of cyberattacks are now financially motivated, with ransomware and extortion being primary drivers. Critical public services, such as hospitals and local governments, are particularly at risk due to limited cybersecurity budgets and inadequate incident response capabilities. Nation-state actors are also evolving their tactics, with countries like China and North Korea increasing their cyber espionage efforts. Microsoft stresses the importance of organizations staying informed about threats and collaborating with industry peers to enhance their defenses.For managed service providers (MSPs), this situation presents a unique opportunity. Clients are investing in cybersecurity tools but require assistance in operationalizing these tools into effective security measures. MSPs can help by building processes, training personnel, and conducting tabletop exercises to ensure that businesses are not just purchasing products but are genuinely prepared for potential threats. The podcast emphasizes that cybersecurity is not merely about acquiring tools; it is fundamentally about preparedness and having a well-executed plan tailored to the business's needs.Additionally, the episode discusses recent product updates from various vendors, including Nerdio, SureWeb, and Veeam, which are introducing new AI tools and partner updates to enhance MSP operations. The importance of human capital in maintaining complex systems is also highlighted, particularly in light of Amazon's recent AWS outage, which was exacerbated by significant layoffs leading to a loss of institutional knowledge. The podcast concludes with a call for MSPs to audit their technology stacks and focus on the impact of workflows rather than just features, ensuring that they are prepared for any chaos that may arise. Four things to know today00:00 The Cybersecurity Paradox: SMBs Spend More Than Ever, But Stay Just as Vulnerable04:21 ConnectWise’s Critical Automate Flaws Highlight the Growing Risk of On-Prem RMMs06:11 From Layoffs to Latency: Amazon’s DNS Outage Reveals the True Cost of Lost Expertise09:06 AI, Compliance, and Cloud PCs: Vendors Race to Redefine MSP Efficiency Ahead of Microsoft’s 2025 Shift This is the Business of Tech. Supported by: https://try.auvik.com/dave-switchhttps://cometbackup.com/?utm_source=mspradio&utm_medium=podcast&utm_campaign=sponsorship 💼 All Our SponsorsSupport the vendors who support the show:👉 https://businessof.tech/sponsors/ 🚀 Join Business of Tech PlusGet exclusive access to investigative reports, vendor analysis, leadership briefings, and more.👉 https://businessof.tech/plus 🎧 Subscribe to the Business of TechWant the show on your favorite podcast app or prefer the written versions of each story?📲 https://www.businessof.tech/subscribe 📰 Story Links & SourcesLooking for the links from today’s stories?Every episode script — with full source links — is posted at:🌐 https://www.businessof.tech 🎙 Want to Be a Guest?Pitch your story or appear on Business of Tech: Daily 10-Minute IT Services Insights:💬 https://www.podmatch.com/hostdetailpreview/businessoftech 🔗 Follow Business of Tech LinkedIn: https://www.linkedin.com/company/28908079YouTube: https://youtube.com/mspradioBluesky: https://bsky.app/profile/businessof.techInstagram: https://www.instagram.com/mspradioTikTok: https://www.tiktok.com/@businessoftechFacebook: https://www.facebook.com/mspradionews Hosted by Simplecast, an AdsWizz company. See pcm.adswizz.com for information about our collection and use of personal data for advertising.
Microsoft is significantly enhancing Windows 11 by integrating artificial intelligence capabilities, transforming the PC experience into what the company calls the "AI PC." This new initiative allows users to interact with their computers using voice commands through a feature called CoPilot. With functionalities like CoPilot Actions, users can delegate tasks such as editing files and troubleshooting issues directly to AI agents, which operate in secure environments to ensure data safety. This shift comes as Windows 10 reaches its end of life, prompting a wave of hardware upgrades as consumers and enterprises seek AI-enabled PCs. Salesforce has also made strides in the IT support sector by launching AgentForce IT Service, a conversational support suite designed to streamline employee assistance. This new system moves away from traditional ticket-based support to real-time solutions delivered through platforms like Slack. By automating incident management, AgentForce aims to reduce the time employees spend on IT challenges, which can lead to significant productivity losses. The service integrates with major companies, enhancing its utility and positioning Salesforce as a competitor in the help desk market. Research indicates that organizations that are well-prepared for AI are more likely to successfully implement AI projects and achieve measurable benefits. Cisco's AI Readiness Index reveals that companies integrating AI into their core functions see substantial gains in profitability and productivity. As enterprise spending on AI infrastructure is projected to double by 2026, the focus is shifting from training AI models to deploying them effectively in business operations. This trend underscores the importance of having a robust infrastructure to support AI initiatives. Finally, Microsoft has announced the end of support for Office 2016 and 2019, urging users to migrate to newer versions like Microsoft 365 Apps or Office 2024. This transition presents an opportunity for managed service providers to engage clients in proactive discussions about software upgrades and security measures. As unsupported software becomes a liability, providers can align these upgrades with other IT improvements, ensuring clients remain compliant and secure. The emphasis is on guiding clients through these changes to enhance their operational efficiency and maintain a steady revenue stream for service providers. Four Things to Know Today: 00:00 Windows 11 Enters the AI Era as Microsoft Launches Copilot-Powered PC Experience05:31 Salesforce Enters IT Support Market with Agentforce, Targeting Productivity and PSA Disruption09:06 AI Advantage Comes to Those Prepared: Cisco, Gartner, and Anthropic Signal Shift to Embedded Intelligence13:10 End of Support for Office 2016 and 2019 Raises Security Stakes, Opens QBR Opportunities Sponsored by: https://mailprotector.com/mspradio/ 💼 All Our SponsorsSupport the vendors who support the show:👉 https://businessof.tech/sponsors/ 🚀 Join Business of Tech PlusGet exclusive access to investigative reports, vendor analysis, leadership briefings, and more.👉 https://businessof.tech/plus 🎧 Subscribe to the Business of TechWant the show on your favorite podcast app or prefer the written versions of each story?📲 https://www.businessof.tech/subscribe 📰 Story Links & SourcesLooking for the links from today’s stories?Every episode script — with full source links — is posted at:🌐 https://www.businessof.tech 🎙 Want to Be a Guest?Pitch your story or appear on Business of Tech: Daily 10-Minute IT Services Insights:💬 https://www.podmatch.com/hostdetailpreview/businessoftech 🔗 Follow Business of Tech LinkedIn: https://www.linkedin.com/company/28908079YouTube: https://youtube.com/mspradioBluesky: https://bsky.app/profile/businessof.techInstagram: https://www.instagram.com/mspradioTikTok: https://www.tiktok.com/@businessoftechFacebook: https://www.facebook.com/mspradionews Hosted by Simplecast, an AdsWizz company. See pcm.adswizz.com for information about our collection and use of personal data for advertising.