Business of Tech: Daily 10-Minute IT Services Insights

Explore the rise of DeepSeek, a groundbreaking AI company shaking up the tech landscape with its V2 model. This game-changing technology uses a mixture of experts and multi-head attention, significantly reducing training costs. Witness how these advancements are reshaping financial strategies and market competition. The podcast also dives into the geopolitical implications, highlighting the U.S.-China AI race and the impact on major tech players like NVIDIA and Apple. Plus, insights on new AI tools that further intensify the competition.

The IT-managed services industry is projected to hit $595 billion in 2025, with the Asia-Pacific region leading due to rising cybersecurity demands. Many partners face hurdles in advancing AI projects amid strict regulations like the Digital Operational Resilience Act. Small and medium businesses are bogged down by PC maintenance, using 77% of IT staff time on it. AI is transforming PC purchases as businesses seek performance optimization and user training. Additionally, a recent Microsoft price increase has sparked significant backlash.

Anil Gupta, Co-founder and CTO of Wyebot, shares his insights on Apple's transition from Mobile Device Management (MDM) to Declarative Device Management (DDM). He explains how DDM decentralizes control, allowing devices to operate autonomously, which improves scalability and reduces network traffic. The discussion highlights the importance of zero trust security measures in this new framework. Gupta also draws parallels between DDM and WiBot's approach to intelligent Wi-Fi management, showcasing the future of network technology.

Explore the emergence of agentic AI and its transformative potential for small and mid-sized businesses as they gear up for 2025. Discover how AI-powered PCs can set the stage for productivity boosts and effective upgrades. The conversation delves into the shift from AI experimentation to ROI-focused strategies, tailored solutions, and the importance of high-performing partners in the AI landscape. Additionally, cybersecurity challenges unique to SMBs are highlighted, emphasizing the need for specialized, integrated solutions.

President Trump signed a pivotal executive order for a bias-free AI action plan, challenging previous policies. The controversial Stargate data center venture recently drew attention, with OpenAI and SoftBank committing $19 billion but facing skepticism from Elon Musk. Meanwhile, Google introduced new management features for Chrome browser extensions to bolster security against cybercriminals, highlighting growing concerns in IT services. The podcast also discusses the shift towards service-oriented tech models amid rising global IT expenditures.

President Trump's bold Stargate initiative seeks to bolster the nation's AI infrastructure with $500 billion, recruiting tech giants like Oracle and Microsoft. Microsoft has reevaluated its alliance with OpenAI, allowing access to competitors, while maintaining unique rights to certain technologies. The use of OpenAI's GPT-4 for sensitive government work signifies a leap in trust for AI in federal operations. Meanwhile, the interplay of AI in daily life reveals a mix of skepticism and opportunity, especially in biotechnology and creative industries.

Explore the Biden administration's strides in cybersecurity compliance for critical infrastructure like pipelines and airports. The arrest of an Army specialist connected to a significant phone record theft raises alarms in the telecom sector. Discover AvePoint's strategic acquisition to bolster its MSP platform in the booming cybersecurity market. On the tech front, Microsoft announces its first price hike in 12 years for the Microsoft 365 bundle, while pushing for Windows 11 upgrades amid ongoing challenges with AI adoption and product performance.

Small business optimism is on the rise, with owners planning to boost compensation despite inflation worries. The impact of AI is reshaping the job market, leading to significant job losses but also the creation of new roles. As IT spending is forecasted to hit $5.61 trillion by 2025, the challenge remains to ensure customers see value amidst potential price hikes. Additionally, workforce development is critical as employee engagement hits a decade low, highlighting the need for businesses to adapt in this evolving landscape.

In this engaging discussion, Holly Rollo, CEO and tech industry veteran, reveals the pivotal role small and mid-sized businesses play in national security. She emphasizes that cybersecurity isn’t just for federal contractors; vulnerabilities can arise from any third-party connection. Rollo also highlights the necessity of complying with CMMC 2.0 regulations. As businesses transition to digital platforms, she warns about the dangers of outdated technology and shares insights on leveraging AI alongside strong cybersecurity measures for sustainable growth.

Host Dave Sobel engages in a lively discussion with seasoned technology journalist Jessica Davis and veteran industry writer Howard Cohen. The conversation kicks off with an exploration of the recent trend of CEO changes in the tech industry, particularly focusing on notable shifts at companies like Kaseya and ConnectWise. The trio delves into the implications of these leadership changes and speculates on the potential reasons behind them, including possible mergers and acquisitions, as well as the evolving landscape of managed services.A significant portion of the episode is dedicated to the MSSP (Managed Security Service Provider) benchmark pricing report, which Jessica recently published. She highlights key findings, such as the opportunity for MSSPs to offer Virtual Chief Security Officer (vCSO) services, which are currently underutilized. The report reveals that while 100% of MSSPs provide security operations center services, only 57% offer backup and disaster recovery services, raising questions about the foundational services that should be included in security offerings. The discussion emphasizes the need for MSSPs to better define their services and explore pricing strategies to remain competitive in a rapidly evolving market.The conversation shifts to the growing trend of mergers and acquisitions (M&A) in the managed services sector. Jessica notes that while the M&A market for MSPs surged in 2021 and 2022, it has since slowed due to rising interest rates and a limited supply of quality MSPs available for acquisition. This has led investment firms and organizations like Evergreen and The 20 to create their own events to build a pipeline of potential acquisitions. Howard adds that many MSPs are wary of selling to private equity firms due to concerns about employee retention and company culture, which has prompted alternative acquisition strategies focused on preserving the existing workforce.As the episode wraps up, the panelists share their predictions for the first half of the year. Howard emphasizes the importance of professionalism in the industry, advocating for a shift from viewing managed services as a trade to recognizing it as a profession. Jessica highlights the increasing relevance of artificial intelligence (AI) in managed services, noting that MSPs are beginning to explore its applications for both customer use cases and internal operations. The discussion concludes with a call for the industry to embrace these changes and leverage new technologies to drive growth and innovation.  All our Sponsors:   https://businessof.tech/sponsors/ Do you want the show on your podcast app or the written versions of the stories? Subscribe to the Business of Tech: https://www.businessof.tech/subscribe/Looking for a link from the stories? The entire script of the show, with links to articles, are posted in each story on https://www.businessof.tech/ Support the show on Patreon: https://patreon.com/mspradio/ Want to be a guest on Business of Tech: Daily 10-Minute IT Services Insights? Send Dave Sobel a message on PodMatch, here: https://www.podmatch.com/hostdetailpreview/businessoftech Want our stuff? Cool Merch? Wear “Why Do We Care?” - Visit https://mspradio.myspreadshop.com Follow us on:LinkedIn: https://www.linkedin.com/company/28908079/YouTube: https://youtube.com/mspradio/Facebook: https://www.facebook.com/mspradionews/Instagram: https://www.instagram.com/mspradio/TikTok: https://www.tiktok.com/@businessoftechBluesky: https://bsky.app/profile/businessof.tech