Business of Tech: Daily 10-Minute IT Services Insights

Artificial intelligence adoption is accelerating without formal ownership as employees, customers, and patients integrate AI tools into daily decisions. Surveys from Gallup show 45% of U.S. employees use AI at work at least occasionally, while research cited by OpenAI indicates roughly 60% of American adults recently used AI for health-related questions. Zoho and Arion Research report that 41% of organizations have strengthened privacy measures after adopting AI, reflecting growing concern about data exposure and accountability. For MSPs, the shift places liability closer to the systems being used rather than the vendors supplying them.Trust in digital media is also eroding as AI-generated content becomes harder to distinguish from authentic material. Instagram CEO Adam Mosseri states that assuming photos or videos reflect real events is no longer reliable and suggests verification at the point of capture rather than labeling generated content. This approach reframes trust as a technical system rather than a social assumption. For IT providers, the issue extends beyond social platforms to security footage, compliance evidence, training data, and any asset where authenticity must be demonstrated.At the same time, automation and AI training are converging on the same constraint: expert judgment. HireArt’s 2025 AI Trainer Compensation Report shows subject-matter experts earning $60 to more than $180 per hour, compared with under $20 for generalist data labelers, reflecting the cost of errors in regulated or technical fields. Kaseya’s 2025 EMEA MSP Benchmark Report finds that while nearly 75% of MSPs expect revenue growth, 45% face staffing and skills shortages, increasing reliance on automation built on accurate data and curated exceptions.Major vendors are embedding judgment directly into platforms. ServiceNow’s planned $7.75 billion acquisition of Armis expands asset classification and risk scoring within workflows. Freshworks’ acquisition of FireHydrant integrates AI-driven incident management into ITSM. Google Cloud’s revamped Partner Network shifts incentives toward outcome-based tiers beginning in 2026. For MSPs and IT service leaders, these moves concentrate responsibility around interpretation, governance, and accountability, even as tools increasingly define risk and success.Four things to know today00:00 Surveys Show AI Adoption Is Happening Without Ownership as Employees, Customers, and Patients Lead Usage04:50 Instagram’s CEO Says Trust Is No Longer Assumed as AI Forces Proof-of-Reality Models07:22 AI and MSP Automation Are Converging on the Same Bottleneck: Expert Judgment09:52 Vendors Shift From Tools to Judgement as ServiceNow, Freshworks, and Google Cloud Embed Risk, Incidents, and Outcomes This is the Business of Tech.    Supported by:  https://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.

The U.S. economy demonstrated robust growth in the third quarter of 2025, with a gross domestic product (GDP) increase of 4.3%, according to the Commerce Department. This growth occurred despite consumer concerns and uncertainties related to tariffs, with military spending and corporate profits contributing significantly. However, the technology sector experienced substantial layoffs, with 1.1 million jobs cut in 2025, of which only 55,000 were attributed to artificial intelligence (AI). The majority of job losses stemmed from corporate restructuring and economic conditions rather than direct displacement by AI, leading to hiring freezes, particularly for entry-level positions.Small and medium-sized businesses (SMBs) are currently facing challenges in attracting talent, with over 70% reporting difficulties in finding qualified candidates due to competition from larger firms. The National Federation of Independent Business noted that nearly half of all small businesses are struggling to fill open positions, which is stalling growth and reducing productivity. Despite a slight increase in small business optimism, driven by expectations of higher sales, many owners cite labor quality as their top concern. Additionally, 64% of SMBs are experiencing supply chain disruptions, complicating their operations.The episode also discusses the ongoing chip and memory shortages, which are expected to persist into 2027, leading to rising prices for consumer electronics. Major memory manufacturers are prioritizing supply for AI companies, impacting pricing across various sectors. Furthermore, the shift towards outcome-based pricing models in software is highlighted, where companies may pay based on actual results delivered, potentially complicating the relationship between service providers and clients if expectations are not clearly defined.For Managed Service Providers (MSPs) and IT service leaders, these developments underscore the importance of clarity and realistic expectations in service delivery. As operational fragility becomes more pronounced amid rising costs and labor shortages, MSPs must reframe their roles from implementers to risk managers. This shift is crucial to avoid margin erosion and contract disputes, ensuring that they are not unduly burdened by decisions made outside their control. The evolving economic landscape necessitates a proactive approach to pricing and service design, particularly as automation and AI continue to reshape the industry. Four things to know today 00:00 Strong GDP Growth, Persistent Layoffs, and Weak AI Returns Expose Hidden Risk for SMB Operations07:04 AI Is Driving Hardware Shortages, Cloud Growth, and Outcome-Based Pricing—Raising Cost Risk for MSPs11:10 MSP Expense Volatility, AI-Driven Service Shifts, and Labor Shortages Are Colliding on Pricing Strategy15:04-- MSP Radio Expands Beyond News With Acquisition of Two MSP Education Brands This is the Business of Tech.     Supported by:  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.

Managed Service Providers (MSPs) are encouraged to shift their focus from traditional infrastructure management to becoming Managed Intelligence Providers (MIPs), emphasizing the integration of artificial intelligence (AI) into their service offerings. Chance Weaver, VP of AI Adoption at PAX 8, highlights the necessity for MSPs to engage in deeper conversations with clients about their business processes rather than merely discussing technology tools. This approach aims to identify specific business challenges that can be addressed through tailored technological solutions, including AI, automation, and business intelligence.Weaver notes that while many MSPs have historically excelled in maintaining infrastructure, they often lack a comprehensive understanding of their clients' workflows and business needs. The transition to MIPs involves not only understanding business processes but also ensuring data readiness, which is critical for effective AI implementation. Instead of undertaking extensive data cleanup projects upfront, MSPs should focus on the data relevant to specific business processes, thereby demonstrating immediate ROI and building trust with clients.The episode also discusses the importance of outcome-driven services and the potential for MSPs to monetize AI solutions effectively. Weaver shares insights from his interviews with over 650 partners in the PAX 8 ecosystem, revealing that only a small percentage are currently generating revenue from AI-related services. Successful partners are leveraging their existing relationships and expertise to create value for clients by aligning pricing models with measurable outcomes, thus facilitating a smoother transition to AI adoption.For MSPs and IT service leaders, the key takeaway is the urgency to start conversations about AI with clients, even if they are not yet fully equipped to implement these solutions. By positioning themselves as knowledgeable partners in the AI transformation journey, MSPs can capitalize on emerging opportunities and enhance their service offerings. The discussion emphasizes that while some providers may choose to adopt a fast-follower strategy, those who proactively engage with clients about AI will likely gain a competitive advantage in the evolving market 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.

The conversation centers on the evolving role of automation in Managed Service Providers (MSPs), particularly the implementation of human-in-the-loop AI systems. Mathieu Tougas, CEO of Mizo Technologies, emphasizes that while automation can significantly enhance efficiency—reporting a 26% increase in technician capacity and a 30% reduction in escalations—maintaining human oversight is crucial for ensuring service quality. This approach allows technicians to delegate low-value tasks to AI agents while focusing on higher-value customer interactions, thereby preserving the essential human element in service delivery.Tougas outlines the methodology behind these efficiency gains, which involves analyzing ticket resolution times before and after deploying Mizo's solutions. The data indicates that technicians can handle more tickets in less time, which can lead to reduced staffing needs without compromising service quality. He also addresses common misconceptions among MSPs regarding AI, particularly the fear of losing control over service quality when delegating tasks to automated systems. Instead, he argues that AI should be viewed as a tool to enhance technician capabilities rather than replace them.The discussion also touches on the importance of integrating AI tools into existing workflows without causing disruption. Mizo Technologies employs a two-week fine-tuning period to adapt its systems to the specific processes of each MSP, ensuring a smoother transition and minimizing the need for extensive retraining. This gradual approach allows organizations to build trust in the AI systems while optimizing their service desk operations.For MSPs and IT service leaders, the key takeaway is the necessity of balancing automation with human oversight to maintain service quality. As the industry moves towards greater automation, understanding the right contexts for AI deployment and ensuring robust processes are in place will be essential for maximizing efficiency and customer satisfaction. Embracing AI thoughtfully can lead to significant operational improvements while still addressing the critical need for human interaction in service delivery.  💼 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.

Robbie Bach, former president of Microsoft's Entertainment and Devices Division, discusses his transition from technology executive to author of political techno-thrillers, focusing on his latest book, The Blockchain Syndicate. The narrative explores themes of digital identity, misinformation, and the vulnerabilities of modern institutions, emphasizing that technology itself is neutral; it can be used for both beneficial and harmful purposes. Bach highlights the character of Tamika Smith, a military veteran, as a lens through which to examine leadership in a complex landscape of technology and public trust.Bach elaborates on the psychological and technical aspects of his story, particularly the implications of digital identity and authenticity. He notes that the plot involves a blackmail scenario linked to a character presumed dead, raising questions about the authenticity of digital communications. This reflects broader concerns about cybersecurity, where vulnerabilities are often exploited rather than created anew. Bach emphasizes the importance of grounding his narrative in real-world technology and experiences, blending factual research with creative storytelling.The conversation also touches on the governance of technology, critiquing current regulatory approaches that tend to be reactive rather than proactive. Bach argues that effective governance requires forward-thinking leadership capable of anticipating future challenges, particularly in areas like AI and blockchain. He stresses the need for businesses, including small and medium-sized enterprises, to engage with these issues beyond mere compliance, advocating for a broader sense of responsibility that includes stakeholder value.For Managed Service Providers (MSPs) and IT service leaders, Bach's insights underscore the critical role they play in navigating the complexities of technology governance and cybersecurity. By understanding the vulnerabilities inherent in digital systems and advocating for responsible practices, MSPs can better support their clients in mitigating risks associated with misinformation and identity fraud. The episode serves as a reminder of the importance of ethical considerations in technology deployment and the need for proactive engagement in shaping a secure digital future.  💼 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.

Laith Palhawan, CEO and founder of OrangeCrew, has successfully transitioned his managed IT services company into the public sector by becoming GSA certified, allowing him to provide IT services to government agencies. This shift has required a deep understanding of compliance and security requirements that differ significantly from those in the private sector. In the public sector, clients expect adherence to strict standards and predefined solutions, which contrasts with the more flexible and responsive approach typically found in private business engagements.Pahlawan's experience highlights the challenges of profitability in the managed services landscape, particularly when working with government contracts that often yield lower margins of 10-15%. He emphasizes the importance of strategic partnerships and effective business analysis to maintain sustainable margins. By utilizing tools like Power BI and Kaseya, OrangeCrew can track time and resources spent on each client, allowing for informed decisions about which clients to prioritize and which to decline based on profitability and demand.The episode also delves into OrangeCrew's innovative use of artificial intelligence (AI) to enhance internal operations and client services. Pahlawan has developed a centralized database that integrates various data sources, enabling the use of AI to analyze client interactions and identify potential issues proactively. This system not only improves operational efficiency but also positions OrangeCrew as a forward-thinking MSP capable of offering advanced solutions to clients, particularly in the realm of AI.For MSPs and IT service leaders, the insights shared by Pahlawan underscore the necessity of adapting to evolving client needs, particularly regarding compliance and AI integration. As businesses increasingly rely on AI for operational efficiency, MSPs must enhance their understanding of data management and automation to remain competitive. The conversation serves as a reminder that embracing new technologies and strategic partnerships can lead to sustainable growth and improved service delivery in a challenging market.  💼 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 episode reviews the outcomes of predictions made for 2025, highlighting the evolving role of automation and AI in Managed Service Providers (MSPs). Key findings indicate that while generative AI has improved data accessibility, it has not fully resolved existing reporting issues related to data quality and governance. Additionally, the anticipated widespread adoption of autonomous IT systems among small and medium-sized businesses (SMBs) has not materialized, as many still rely on traditional remote monitoring and management (RMM) tools. The episode emphasizes that AI governance and advisory services have become central to modern MSP offerings.Further analysis reveals that while AI-driven legal services gained traction, MSPs have not widely adopted these as packaged offerings. Instead, they have focused on AI compliance and regulatory advisory services. The discussion also touches on the mixed results of fraud prevention becoming a standard service, with significant growth in some sectors but uneven adoption across the board. The episode concludes with a scorecard of predictions, noting a few clear successes in AI governance and readiness consulting, while highlighting a notable miss regarding decentralized MSP models.Looking ahead to 2026, the episode presents several predictions that reflect the increasing importance of automation in IT services. It suggests that MSPs whose revenue models still depend heavily on human labor will face pressure to adapt, as automation becomes the primary driver of service scalability. The discussion also raises concerns about accountability in automation, predicting that individuals may be held responsible for failures in automated systems, emphasizing the need for robust governance frameworks.The implications for MSPs and IT service leaders are significant. As automation becomes the production system for IT services, providers must focus on governance, risk management, and advisory roles to differentiate themselves in a competitive landscape. The episode underscores the necessity for MSPs to evolve their service offerings and business models to align with these trends, ensuring they remain relevant and capable of delivering value in an increasingly automated 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.

Matthew Nikravesh, CEO and co-founder of Solarus Technologies, discussed the evolution of managed services in response to the increasing demand for cloud solutions, particularly Azure, during the pandemic. Solaris Technologies, founded in 2012, focuses on providing managed services primarily to nonprofits and small to mid-sized businesses. The company has implemented an automated cloud management platform in partnership with Nerdio, which has enabled them to efficiently deploy Azure Virtual Desktops and streamline support processes for their engineers.The conversation highlighted the importance of automation in reducing operational inefficiencies. Solarus Technologies has integrated automation tools, such as PIA, to manage user onboarding and ticket dispatching, achieving a 35% automation rate for incoming tickets. However, Nikravesh acknowledged that the journey toward effective automation is iterative, requiring ongoing adjustments to improve performance. The company has also seen significant benefits from automating user onboarding processes, which have reduced the back-and-forth communication typically associated with new hires.Nikravesh also addressed the challenges faced by nonprofits in adopting AI technologies, noting that many organizations struggle with data readiness and security. To assist clients in overcoming these hurdles, Solarus Technologies collaborates with an AI consultant to conduct readiness assessments, ensuring that clients can effectively leverage AI tools when they are prepared. This proactive approach aims to help nonprofits focus on their missions rather than IT concerns.For MSPs and IT service leaders, the discussion underscores the necessity of evaluating tool stacks and vendor partnerships strategically. Nikravesh emphasized the importance of smart revenue growth, advising MSPs to assess their client relationships and eliminate those that do not contribute positively to their bottom line. As the industry continues to evolve, the integration of cloud services and AI will remain critical topics for MSPs, necessitating a focus on delivering value while managing operational complexities.  💼 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 episode features a discussion on the current state of profitability and revenue growth within the Managed Service Provider (MSP) industry, highlighting that 2024 marks the fifth consecutive year of strong profitability. Despite this positive trend, revenue growth has cooled compared to the rapid increases seen from 2021 to 2023, with organic revenue growth peaking at 25% before declining to around 10.6%. This shift has led to concerns that MSPs may be under pressure; however, profitability metrics indicate that the industry remains healthy, with best-in-class firms achieving significantly higher earnings than their median peers.Peter Kujawa of Service Leadership elaborates on the factors influencing these trends, noting that while profitability has improved, wage inflation has impacted service gross margins. The data reveals that the best-in-class MSPs maintain a W2 ratio that allows them to generate more revenue per employee compared to their median and bottom quartile counterparts. This efficiency is crucial as the industry matures, with many MSPs now facing the challenge of adapting to a more competitive landscape where automation and AI are becoming increasingly important.The conversation also touches on the evolving compensation structures within MSPs, emphasizing the importance of incentive pay over base salaries. Best-in-class firms tend to offer higher variable pay percentages, which are tied to performance metrics that employees can control, thereby motivating better outcomes. This approach contrasts with the bottom quartile, where compensation structures may not align as effectively with performance, potentially leading to complacency.For MSPs and IT service leaders, the key takeaway is the necessity of embracing operational efficiency and automation to remain competitive. As the market continues to mature, those who invest in automation and refine their compensation strategies will likely see improved profitability and growth. The episode underscores the importance of understanding market dynamics and leveraging data-driven insights to make informed business decisions.  💼 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.

Conflicting jobs data indicates a complex economic landscape for IT service providers, as the unemployment rate in the tech sector has risen to 4% with a loss of 134,000 jobs between October and November 2025. Despite a drop in the overall unemployment rate to 4.2% and a projected growth of managed services contributing $608 billion to the B2B technology sector, the mixed signals from economic indicators complicate decision-making for the Federal Reserve and raise concerns about consumer spending. Analysts emphasize that the current job losses reflect a shift in responsibility from internal roles to external managed service providers (MSPs), which may not alleviate underlying risks.The National Institute of Standards and Technology (NIST) has released a draft profile addressing cybersecurity challenges posed by artificial intelligence (AI), highlighting the need for organizations to manage AI-related security risks effectively. This profile outlines how AI can enhance cybersecurity defenses while also detailing the responsibilities that come with its deployment. Recent assessments reveal that while some AI models perform better in security contexts, the lack of clarity around accountability when AI systems make decisions remains a significant concern for MSPs.Private equity activity is accelerating in the managed services sector, exemplified by Broadwing Capital's acquisition of CloudScale365, which aims to create a platform addressing gaps in the fragmented IT-managed services market. This consolidation trend raises questions for MSPs about operational norms and the potential loss of control over their business models. As platforms seek to standardize pricing and decision-making processes, MSPs must consider how these changes will affect their service delivery and customer relationships.For MSPs and IT service leaders, the evolving landscape underscores the importance of understanding where risk is shifting and how to price and govern accordingly. The retreat from AGI hype and the focus on practical AI applications signal a need for clarity in decision-making processes, particularly as automation becomes more prevalent. MSPs that can articulate the limitations of their AI systems and establish clear accountability frameworks will be better positioned to navigate the complexities of the current market. Four things to know today00:00 As Jobs Data Conflicts and Tech Employment Slips, Managed Services Absorb Risk and Responsibility05:46 NIST’s AI Security Framework Meets Reality as Model Safety Gaps Expose Accountability Risks08:54 Broadwing Launches MSP Platform to Standardize Scale, Signaling Growing PE Pressure on MSP Operations11:03 AI Rebrands Itself as Open Source Expands, Automation Scales, and Accountability Gets Murkier 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.