Business of Tech: Daily 10-Minute IT Services Insights SMBs Boost AI Budgets, Europe Shifts from US Cloud, US Manufacturing Sentiment Declines
Small to medium-sized businesses (SMBs) are increasingly turning to third-party service providers to enhance their capabilities in artificial intelligence (AI) and hybrid cloud solutions. A recent Forrester report, commissioned by Crayon, indicates that 31% of surveyed leaders from Australia, New Zealand, India, and Southeast Asia plan to combine in-house teams with external providers to improve their AI capabilities within the next year. The report highlights a significant interest in AI, with 83% of respondents experimenting with free AI tools, although many are still in the exploration phase rather than implementation. Additionally, 87% of businesses are increasing their budgets for third-party services, signaling a shift towards advisory and pilot projects rather than traditional managed services.
In Europe, there is a growing trend among customers to seek alternatives to U.S. cloud service providers due to concerns over reliability, pricing, and data security. Discussions at the recent KubeCon EU event revealed a tripling of inquiries for local cloud solutions, with companies like NextCloud gaining traction. The dominance of major players like Amazon Web Services, Microsoft, and Google, which control about 70% of the European cloud market, is being challenged as organizations question their control over data and consider a transition to trusted local providers.
Meanwhile, U.S. manufacturing sentiment is declining, with many manufacturers bracing for recession-like conditions amid ongoing trade tensions. Surveys indicate a significant drop in optimism among factory owners, with the New York Federal Reserve reporting one of the lowest outlooks in over two decades. Although manufacturing output saw a slight increase in March, the overall landscape remains volatile, with future hiring intentions at their lowest since 2016. This juxtaposition of rising output against declining sentiment underscores the complexities facing the manufacturing sector.
Lastly, Synology is tightening its grip on hardware by implementing restrictions on the use of third-party hard drives in its future network-attached storage devices. Starting in 2025, only Synology-branded drives and those certified by the company will be supported for full functionality. This move raises concerns about vendor lock-in, particularly for managed service providers (MSPs) who have relied on Synology for its reliability and ease of use. Additionally, a cautionary tale emerges from U.S. Defense Secretary Pete Hegseth's misuse of Signal for sharing sensitive military information, highlighting the importance of operational security and the need for a strong cybersecurity culture within organizations.
Three things to know today
00:00 Tech Tides Are Shifting: SMBs Want Advice, Europe Wants Control, and U.S. Industry Feels the Strain
05:58 Hard Drives Locked Out: Synology Tightens the Rules, and MSPs Might Rethink Their NAS Game
07:32 He Did It Again: Hegseth’s Signal Habit Raises the Stakes for Cybersecurity Culture
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