Business of Tech: Daily 10-Minute IT Services Insights

AI Governance Spending Soars as Cloud Costs Rise; Huntress Partners with SureWeb in Channel Shift

Oct 6, 2025

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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 Boom

05:25 Government Shutdown and Policy Turmoil, Not AI, Emerging as Real Threats to U.S. Employment

10:17 Pax8’s “Managed Intelligence” Push Highlights Growing Tension Between AI Hype and MSP Readiness

13:28 Huntress and Sherweb Redefine Channel Strategy with Relationship-First Distribution Model

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