Business of Tech: Daily 10-Minute IT Services Insights Tech Hiring Stalls, Cloud Costs Rise, Layoffs Linked to Breaches, Pango Acquires Kaspersky Users
The August jobs report revealed that the U.S. economy added 142,000 jobs, falling short of expectations, while the unemployment rate decreased to 4.2%. Small businesses are facing challenges, with 40% of owners struggling to fill positions and a significant number reporting a lack of qualified applicants. Despite these hurdles, there is a slight increase in job openings for skilled workers, especially in construction, and a net 33% of business owners raised pay in August.
Host Dave Sobel highlights a cautious approach to tech hiring, noting that overall tech employment remains flat. While the tech services sector saw a modest job increase, the tech manufacturing sector experienced losses. The unemployment rate for tech occupations rose to 3.4%, with active job postings for roles like software developers and data scientists increasing. Additionally, he shares market news about Palantir and Dell joining the S&P 500 index due to their success in the generative AI market, while American Airlines and Etsy are being removed.
The episode also delves into the rising costs associated with cloud services, as over a third of organizations feel their transition to the cloud has not met cost-effectiveness expectations. More than half of the organizations reported increased bills, contradicting the anticipated stable or decreasing prices. Despite these challenges, CIOs continue to rely on cloud solutions, creating opportunities for service providers to assist with cloud cost management and optimization strategies.
Lastly, Sobel discusses a new study linking layoff announcements to increased cybersecurity risks, emphasizing the need for companies to secure their systems proactively. He notes that companies undergoing layoffs should engage IT service providers to implement stricter security protocols. The episode concludes with news about Pango Group acquiring Kaspersky's U.S. antivirus customers, providing an opportunity for IT service providers to support clients during this transition. Overall, the episode provides valuable insights into the current state of the job market, cloud services, and cybersecurity challenges.
Four things to know today
00:00 Tech Hiring Stalls as Overall Job Growth Slows: Why Outsourced Services Are Gaining Value
04:23 Over Half of Organizations Report Cloud Price Hikes: How IT Providers Can Help Manage Cloud Expenses
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