New data points to the significant growth projected for the IT-managed services industry in 2025, with revenues expected to reach approximately $595 billion globally. The Asia-Pacific region is anticipated to lead this growth, driven by an increasing demand for cybersecurity services and a shift towards a security-first approach among managed service providers (MSPs). However, a recent Canalys survey indicates that many partners struggle to advance artificial intelligence (AI) projects beyond the proof-of-concept stage, highlighting the challenges posed by compliance and regulation, particularly with new laws like the Digital Operational Resilience Act in the EU.
The episode also delves into the evolving landscape of PC technology, where small and medium-sized businesses reportedly spend 77% of their IT staff's time on PC maintenance and support. As AI technology advances, AI PCs are expected to account for a significant portion of all PC purchases in 2025. The need for performance optimization, AI software deployment, and on-device security is becoming increasingly critical, prompting IT providers to develop specialized support services to meet these demands. The rise of AI also necessitates user training and energy efficiency, as businesses look to maximize the potential of AI technology.
In a discussion about major tech companies, host Dave Sobel highlights the backlash Microsoft faced after a 30% price increase for its Microsoft 365 Copilot subscription, which left many users dissatisfied and unaware of the changes. Despite the criticism, the price hike is projected to generate substantial additional revenue. Meanwhile, Apple is focusing on revamping Siri and enhancing its AI models, reflecting a commitment to improving its AI capabilities amid challenges with existing features. These developments underscore a broader issue within the IT services industry: the gap between AI hype and real-world delivery, emphasizing the importance of transparency and effective communication with customers.
The episode concludes with insights into the evolving role of Chief Information Security Officers (CISOs), who are increasingly taking on broader business responsibilities beyond traditional cybersecurity duties. Despite this expansion, only a small percentage of CISOs reported salary increases linked to their additional responsibilities. The growing influence of CISOs in boardrooms is noted, with many now reporting directly to CEOs and participating in board meetings. However, a disconnect remains between the priorities of CISOs and board members, particularly regarding compliance, which could pose challenges in navigating the complex regulatory landscape. This evolving dynamic presents both opportunities and challenges for IT providers and MSPs as they seek to align with CISOs and address gaps in security and compliance.
Three things to know today
00:00 The $595 Billion Question: Can MSPs Keep Up with Complexity in 2025?
06:19 Microsoft’s AI Price Hike Shocks Users—Apple’s Fixing Siri, but Are Either Getting It Right?
08:47 From Security to Strategy: Why CISOs Are Juggling More—Without the Pay Bump
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Business of Tech: Daily 10-Minute IT Services Insights