Business of Tech: Daily 10-Minute IT Services Insights

Howard M. Cohen, a seasoned expert in the managed service provider (MSP) sector, discusses the current state and future potential of artificial intelligence (AI) for MSPs. He highlights that while adoption rates are still low, with only a small percentage of partners and customers fully integrating agentic AI, there is a growing interest in practical applications. Cohen emphasizes the importance of moving beyond the hype surrounding AI and focusing on real business tools that can enhance service delivery and client engagement.Cohen shares insights from his experience, recalling the excitement of the early days of personal computing and drawing parallels to the current AI landscape. He notes that many discussions around AI lack depth and practical understanding, urging MSPs to seek out genuine applications that can drive results. He cites examples of MSPs successfully implementing AI solutions, such as virtual agents in boutique hotels, which demonstrate the tangible benefits of AI when applied thoughtfully.The conversation also touches on the challenges MSPs face, including data security, compliance concerns, and the need for internal expertise. Cohen argues that MSPs should take a consultative approach, engaging with clients to understand their business processes and identifying opportunities for AI integration. He believes that by focusing on practical applications and outcomes, MSPs can better position themselves in a rapidly evolving market.Finally, the discussion shifts to the implications of changing pricing models in the AI space. With a significant increase in per-use pricing among AI software companies, Cohen warns that MSPs must be prepared to define what constitutes usage and outcomes clearly. He stresses the need for MSPs to adapt their service offerings and pricing strategies to align with these new models, ensuring they can deliver value while navigating the complexities of AI integration.  💼 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.

OpenAI has announced a major restructuring plan that involves transferring an equity stake valued at over $100 billion to the non-profit organization overseeing it. This move is part of a broader strategy to transition OpenAI from a non-profit to a public benefit corporation, alongside a tentative agreement to resolve financial issues with Microsoft, which has invested over $13 billion in OpenAI since 2019. The revised agreement includes a clause that limits Microsoft's access to OpenAI's most advanced technologies if they achieve artificial general intelligence. This transition is under scrutiny from regulators and raises concerns about OpenAI's commitment to its foundational mission of ensuring that artificial intelligence benefits humanity.The financial implications of OpenAI's restructuring are significant, particularly with an estimated computing cost problem of $350 billion. This staggering figure not only highlights the challenges OpenAI faces but also sets a concerning precedent for other tech companies relying on cloud computing resources. If OpenAI struggles with these costs, it could lead to higher API pricing, throttled access, or abrupt contract changes that would affect managed service providers (MSPs) and their clients. The podcast emphasizes the importance of diversifying partnerships and negotiating flexibility in contracts to mitigate potential volatility in the AI landscape.In other industry news, N-able has launched CATMIP, an initiative aimed at standardizing AI terminology in cybersecurity and IT management. This effort seeks to address the inconsistencies in terminology across different tech vendors, which can lead to errors and ambiguities in AI command interpretation. Meanwhile, Kaseya has reshaped its leadership with a community-first message, appointing new executives to enhance its AI-first platform, Kaseya 365. These changes reflect a shift towards a more community-centric approach for managed service providers, although the podcast cautions that new titles alone won't resolve existing integration challenges.Adobe and Coro are also making strides in integrating AI into their offerings. Adobe has introduced AI agents in its Experience Cloud, with over 70% of customers already adopting the new tools designed to enhance customer experience processes. Coro has released a new version of its cybersecurity platform tailored for small and mid-sized businesses, leveraging AI to simplify security processes. The podcast concludes with a discussion on the decline of the open web, the normalization of AI as a technology, and the importance of aligning AI adoption with business goals rather than treating it as a standalone strategy. Four things to know today 00:00 OpenAI Restructures With $100B Equity Transfer While Confronting $350B Compute Crisis03:58 N-able Pushes AI Standardization While Kaseya Reshapes Leadership for AI-First Future06:51 Adobe Targets Customer Experience as Coro Brings Enterprise Security to SMBs08:28 Open Web Fades, AI Normalizes, and Strategy Matters More Than Ever  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.

Oracle Corporation has made headlines with its ambitious revenue projections, forecasting a dramatic increase in its cloud server rental business from $10 billion in fiscal 2025 to $144 billion by fiscal 2030. This growth is attributed to a significant rise in new contracts and a 359% boost in business backlog, largely driven by partnerships with major AI firms. Despite the excitement surrounding these projections, analysts express caution, noting that a decline in enterprise AI adoption could jeopardize Oracle's plans. Recent data indicates that 95% of companies using AI have not seen new revenue, raising questions about the sustainability of Oracle's aggressive investment strategy.The latest statistics reveal a concerning trend in AI adoption among large companies, which has dropped from nearly 14% to under 12% in just a few months. This decline is particularly alarming for investors who have heavily invested in AI technologies, expecting them to revolutionize business operations. As companies reassess their reliance on AI, many are beginning to rehire human workers, acknowledging that the technology has not met earlier expectations. Gartner predicts that while AI will play a significant role in IT departments by 2030, the current reality shows that a substantial percentage of CIOs are not seeing a return on their AI investments.In response to the evolving landscape, a new licensing standard called Really Simple Licensing (RSL) has emerged, aimed at empowering web publishers to set terms for how AI developers can use their content. Supported by major brands like Reddit and Yahoo, this initiative seeks to create a fair compensation model for content creators amidst ongoing legal disputes over AI data scraping. The RSL standard allows site owners to charge fees for AI bots crawling their sites, potentially providing smaller publishers with a mechanism to assert the value of their work.Meanwhile, Microsoft is taking steps to diversify its AI offerings by partnering with Anthropic to enhance its Office 365 applications, reducing its reliance on OpenAI. This move comes as Microsoft bundles its sales, service, and finance copilots into a single offering at a lower price, making AI tools more accessible to users. Additionally, the launch of MSPcentric aims to address the challenges of professional services automation integrations within the IT channel, highlighting the ongoing need for efficiency in the industry. As these developments unfold, the focus remains on how AI can deliver tangible benefits to businesses and the workforce. Four things to know today 00:00 Oracle bets $35B on AI future, projecting $144B cloud growth despite slowing adoption signals03:39 AI adoption stalls as ROI disappoints, but workforce shifts show upskilling is key06:41 From content licensing to trillion-parameter models: RSL, Microsoft’s Anthropic pivot, and global AI competition reshape the field11:27 Microsoft Bundles Copilots, Colin Knox Launches MSPCentric: Two Moves Aiming to Simplify Tech for MSPs  This is the Business of Tech.    Supported by: https://syncromsp.com/  💼 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 Pentagon has officially mandated the Cybersecurity Maturity Model Certification (CMMC) for defense contracts, transitioning from a policy framework to enforceable requirements. This regulation, set to take effect on November 10, 2025, requires contractors to meet specific cybersecurity benchmarks based on the sensitivity of the information they handle. With three certification levels, the CMMC aims to ensure that defense-focused providers adhere to stringent cybersecurity standards. This shift presents both opportunities and challenges for managed service providers (MSPs), as some small and medium-sized businesses may opt out of defense contracts due to compliance costs.In a significant development, researchers from New York University have demonstrated the feasibility of AI-powered ransomware, dubbed Ransomware 3.0. This proof-of-concept malware utilizes advanced large-language models to create targeted attacks, making it more difficult to detect and defend against. The incident underscores the growing trend of cybercriminals leveraging AI tools, raising concerns about the potential for real-world applications of such technology. Meanwhile, Microsoft has made multi-factor authentication (MFA) mandatory for Azure portal sign-ins, aiming to enhance cybersecurity and reduce account compromise risks.The podcast also highlights KnowBefore's new white paper on human risk management in cybersecurity, emphasizing a people-centric approach to bolster security culture. Additionally, Secret Double Octopus has launched a program to help MSPs eliminate passwords entirely, moving beyond traditional MFA solutions. Ignite has introduced AI agents tailored for the architecture, engineering, and construction sectors, streamlining documentation tasks and reducing project risks. Sentinel-1's acquisition of Observo AI aims to enhance security operations by improving data management capabilities.Apple recently unveiled updates to its operating systems and new hardware, including the iPhone 17, which features significant security enhancements like Memory Integrity Enforcement. The company is shifting to a year-based version numbering system for its OS updates, aiming for consistency across its ecosystem. While Apple introduced exciting new features, concerns linger about its AI capabilities compared to competitors like Google and Samsung. The podcast concludes by emphasizing the importance of security improvements and the potential support challenges that IT leaders may face as clients compare Apple devices with Android alternatives. Four things to know today 00:00 Pentagon Locks In CMMC Enforcement: Defense Contractors Must Certify or Exit by 202503:00 From AI-Powered Attacks to Forced MFA: Security Baselines Are Moving, and Providers Must Keep Up05:29 From Training to Passwordless to Vertical AI: Vendor Announcements Underscore Shift to Client-Focused Outcomes08:18 Apple’s 2025 Launch Balances Security and Hardware Innovation While Downplaying AI This is the Business of Tech.    Supported by:  https://scalepad.com/dave/ 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.

OpenAI has projected a staggering $115 billion cash burn by 2029, raising significant concerns about the sustainability of the AI model market. Despite an anticipated revenue of approximately $13 billion this year, driven largely by ChatGPT, the company faces escalating costs that could lead to a cash burn exceeding $8 billion this year alone. This financial instability poses risks not only to OpenAI but also to its customers, who may find themselves affected by sudden changes in pricing, features, or business models as the company navigates its financial challenges.Klarna's recent experience serves as a cautionary tale about the pitfalls of over-relying on AI for customer support. After initially replacing 700 human agents with AI, the company faced a 17% default rate on loans and customer dissatisfaction, prompting a reversal of its strategy. As Klarna prepares for its stock market debut, it struggles to reintegrate human staff into its support system, highlighting the chaos that can ensue when companies prioritize AI over human interaction.The podcast also discusses the growing trend of shadow AI, where employees adopt consumer-grade AI tools independently due to a lack of official resources from their employers. This grassroots movement, while potentially increasing productivity, raises concerns about compliance and security. Experts emphasize the importance of establishing governance and policies around AI use to mitigate risks associated with unregulated adoption.Finally, a call from cognitive scientists and AI researchers urges academic institutions to critically assess the integration of AI technologies. They warn that uncritical adoption could undermine students' critical thinking skills and de-skill the future workforce. This sentiment reflects a broader concern within the tech industry about the need for a balanced approach to AI, ensuring that advancements genuinely enhance outcomes rather than simply serve as marketing hype. Four things to know today 00:00 OpenAI’s Soaring Costs, Faulty “Reasoning,” and Legal Battles Expose Fragility of AI Model Market06:12 Klarna’s AI Collapse and Rising “Shadow AI” Adoption Show the Risks of Unmanaged Automation08:33 Academics Warn Against Uncritical AI Adoption, Citing Risks to Critical Thinking10:36 From MSP360 to Google to Syncro, New AI and Security Launches Offer Convenience—But With Hidden Costs This is the Business of Tech.    Supported by:  https://cometbackup.com/?utm_source=mspradio&utm_medium=podcast&utm_campaign=sponsorship 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. job market is experiencing a significant slowdown, with only 22,000 jobs added in August, marking the first net job loss since December 2020. The unemployment rate has slightly increased to 4.3%, indicating a decline in hiring and job seeker enthusiasm. Despite these challenges, the adoption of artificial intelligence (AI) in the labor market is not leading to widespread job losses. A recent survey revealed that only 1% of service firms reported job cuts due to AI, while many companies are retraining existing employees instead of laying them off. The tech sector, however, is seeing a rise in job postings requiring AI skills, reflecting a shift in hiring practices.Small businesses are facing increasing challenges as confidence in their marketing efforts declines, despite higher investments. A report indicates that only 18% of small and mid-sized businesses are very confident in their marketing outcomes, down from 27% the previous year. Many businesses are turning to AI tools and email marketing, but they struggle with limited time for marketing activities. Economic pressures, including rising costs and tariffs, are also impacting operational strategies, leading to concerns about the effectiveness of marketing investments.Tariffs are causing disruptions in tech pricing and delaying PC upgrades, with the removal of the de minimis exemption leading to increased costs for imported goods. This has resulted in price hikes for various products, including luxury items and personal computers. Despite the impending end of support for Windows 10, many businesses are hesitant to upgrade to Windows 11, opting instead for extended support packages. The rise of AI-enabled personal computers is notable, but the associated costs due to tariffs are making these upgrades more challenging for businesses.Broadcom is consolidating its control over VMware, transitioning a significant portion of its customers to subscription-based services. This move is part of a broader strategy to enhance the VMware Cloud Foundation offerings. Meanwhile, a new integration between DarcyIQ and Kaseya Autotask aims to improve operational efficiency for managed service providers by streamlining ticket and project management through natural language conversations. This highlights the need for smarter tools in the industry, as third-party solutions are increasingly filling gaps left by platform vendors. Four things to know today 00:00 U.S. Job Market Stalls, but AI Isn’t the Culprit—Structural Shifts and RTO Mandates Drive Change05:58 SMBs Struggle with Marketing Confidence, Tariff Impacts, and Windows 10 Migration as AI PCs Rise09:59 Broadcom Tightens VMware Grip with Subscription Push, Locking in Top Clients and Leaving Others Behind12:05 Ecosystem Innovation Outsmarts Kaseya as DarcyIQ Delivers Natural Language Interface for Autotask This is the Business of Tech.     Supported by:  https://getnerdio.com/   💼 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.

Ephraim Ebstein, founder and CEO of FIT Solutions, has successfully built two national IT companies and is now focused on transforming technology into a growth engine for businesses. His organization specializes in integrating artificial intelligence (AI) into various sectors, particularly in the realm of customer service and operational efficiency. With a revenue of $30 million last year and projections of $38 million this year, FIT Solutions has established itself as a leader in the IT services industry, emphasizing organic growth without external funding.Ebstein discusses the increasing demand for AI integration among business owners, who are eager to reduce labor costs and enhance revenue. He notes that while many companies are exploring AI, there is often confusion about its practical applications. FIT Solutions has carved out a niche in AI integration, focusing on creating AI employees that can handle tasks traditionally performed by humans, such as customer service and sales. This approach has proven to be more straightforward and effective than selling traditional IT services, as businesses are keen to adopt AI solutions that can streamline operations.One of the standout implementations discussed is the AI concierge service for boutique hotels. This service allows guests to interact with a virtual concierge via text, providing personalized assistance and recommendations without the need for extensive human staff. The AI employee, named Brooklyn, engages with guests, answers questions, and even coordinates tasks like housekeeping requests. This innovative solution not only enhances the guest experience but also significantly reduces labor costs for hotel operators.Ebstein emphasizes the importance of preparing businesses for AI integration, which involves understanding their unique needs and ensuring that the necessary data is accessible. He highlights the complexity of creating effective AI solutions, which often require multiple integrations and extensive training. As businesses increasingly recognize the potential of AI to replace or augment staff, Epstein's insights provide valuable guidance on navigating this evolving landscape and maximizing the return on investment in AI technologies.  💼 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.

Seth Robinson, Vice President of Industry Research at CompTIA, joins host Dave Sobel to discuss the intersection of cloud computing and artificial intelligence (AI). They explore the notion that while there is a prevailing narrative about moving from the cloud era to the AI era, many organizations may not have fully optimized their cloud workflows. Robinson emphasizes that the end of the cloud era is not as clear-cut as it seems, as companies continue to grapple with the complexities of cloud adoption and the need for ongoing optimization.The conversation delves into the challenges organizations face in adopting new technologies, particularly AI. Robinson points out that while many companies are experimenting with AI tools, they often struggle to integrate these technologies into their workflows effectively. The discussion highlights the importance of understanding the lessons learned from cloud adoption, especially regarding cybersecurity and the need for a cohesive strategy that aligns technology evaluation with security considerations.As they transition into the AI era, Robinson warns that companies may repeat past mistakes if they do not learn from their cloud experiences. He stresses the significance of transforming workflows and employee behavior to fully leverage AI's potential. The conversation also touches on the emerging trend of outcome-based pricing models in the SaaS space, indicating a shift in how companies evaluate the value of technology investments.Robinson and Sobel conclude by discussing the complexities of measuring risk in AI implementations and the need for organizations to balance innovation with caution. They emphasize that while AI has the potential to enhance productivity, companies must navigate the challenges of scaling these technologies across their operations. The episode provides valuable insights into the current state of cloud and AI adoption, urging businesses to remain vigilant and strategic in their technology investments.  💼 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.

Intel's recent agreement with the U.S. government includes a controversial clause that allows the federal government to acquire an additional 5% stake in the company if it loses control of its foundry business. This unusual provision has raised concerns among stakeholders, including investors and employees, as it signifies a level of government intervention in corporate governance that is not typically seen in the U.S. The deal is still being finalized, and the implications for Intel's operations and the broader tech industry remain to be seen.A recent report highlights that Gen Z, despite being digital natives, exhibits poorer cybersecurity practices compared to baby boomers. Only 30% of Gen Z regularly change their passwords, and a mere 36% use antivirus software. This generation's trust in technology is evident, with 18% comfortable allowing AI to act on their behalf. However, the report also notes that 91% of Gen Z believes data security training should be a workplace priority, indicating a desire for improvement in their cybersecurity habits.The threat landscape is evolving, with the emergence of AI-powered ransomware, specifically a strain named PromptLock, which is currently under development. This ransomware utilizes AI to generate scripts for data exfiltration and encryption in real time, posing significant challenges for cybersecurity defenses. Additionally, the ransomware gang Storm-0501 has shifted its focus to cloud data, exploiting accounts without multi-factor authentication to exfiltrate sensitive information and demand ransoms through platforms like Microsoft Teams.The podcast also discusses the cooling hype surrounding AI technologies, particularly following the underwhelming launch of GPT-5. Only 5% of companies have successfully converted AI into revenue, leading to a market correction in the tech sector. As managed service providers increasingly adopt AI tools, questions arise about the long-term implications for workforce development and the potential risks associated with over-investing in emerging technologies. The conversation emphasizes the need for MSPs to focus on governance, compliance, and responsible use of AI while navigating the evolving landscape of cybersecurity and technology. Four things to know today 00:00 Gen Z Lags Boomers in Basic Cybersecurity Habits, GWI Report Finds05:07 Auvik Introduces Smart Alert Suppression to Cut False Alarms in IT Management06:26 White House Confirms Intel Agreement Still in Flux as Commerce Finalizes Terms07:44 AI’s Growing Pains—Revenue Gaps, Job Impacts, and MSP Opportunities Collide  This is the Business of Tech.     Supported by:  https://scalepad.com/dave/ 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.

The managed services provider (MSP) market is experiencing a paradoxical trend where revenue is increasing while the number of providers is decreasing. According to Canalys data, global managed services revenue surpassed half a trillion dollars in 2024, reflecting a year-over-year growth of 9.7%. However, the number of channel partners has slightly declined by 0.6%, with large MSPs rapidly acquiring smaller ones. This consolidation trend has led to a significant shift in the market dynamics, where smaller MSPs struggle to compete against larger firms that possess superior resources and pricing power.To survive in this competitive landscape, smaller MSPs must adopt focused strategies, targeting specific customer segments or industries. By doing so, they can achieve higher profit margins, with specialized MSPs reporting EBITDA percentages between 15% to 30%, compared to just 7% for those lacking focus. The article emphasizes that smaller MSPs have several options: they can sell to larger firms, acquire smaller peers, focus on niche markets, or leverage partnerships to remain competitive. The reality is that the middle tier of MSPs is rapidly disappearing, and those who attempt to serve everyone may find themselves at a disadvantage.In addition to the MSP market dynamics, the podcast discusses recent legislative developments, including Michigan's new laws addressing deepfakes, which make it illegal to create AI-generated sexual imagery without consent. This reflects a growing trend across the U.S. to combat nonconsensual abuse imagery, with most states now having similar laws. Furthermore, the U.S. Treasury has imposed sanctions on individuals and entities linked to North Korea's illicit IT worker schemes, highlighting the security risks posed by fraudulent practices in the tech industry.The episode also covers the latest advancements in AI-powered security solutions from various vendors, including Thrive, Addigy, Arctic Wolf, and Acronis. These companies are rolling out new services and products designed to enhance security operations and protect data. The overarching theme is that as technology evolves, the risks associated with it are also increasing, and IT service providers must adapt to these changes by offering value-added services that help clients navigate the complexities of compliance and security in a rapidly changing environment. Four things to know today 00:00 MSP Market Expands to $500B as Provider Count Shrinks Amid Rapid Consolidation04:10 From Abuse Imagery to Supply Chain Threats, Regulation Struggles to Keep Up With Emerging Risks07:45 AI Everywhere: Thrive, Security Vendors, OpenAI, and Microsoft Redefine Service Provider Playbook12:39 D&H and Nutanix Growth Signals Services-Led Future as Distributors and Vendors Push Into MSP Territory This is the Business of Tech.     Supported by:  https://scalepad.com/dave/ 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.