Charter Communications has announced its acquisition of Cox Communications for $34.5 billion, a significant move that will merge two of the largest internet service providers in the United States. This merger is expected to require approval from the Federal Communications Commission due to Cox's critical operational licenses. The combined entity plans to adopt the Cox Communications name, with Spectrum serving as the consumer-facing brand in areas previously served by Cox. This merger could potentially impact service quality for small and medium-sized businesses (SMBs) that rely on Cox as their provider, especially during the integration phase.

In another major development, Proofpoint has revealed its plans to acquire Hornet Security for $1 billion, aiming to enhance its cybersecurity offerings and expand its presence in the cloud security market. Hornet Security specializes in Microsoft 365 solutions and has shown impressive growth, reporting over $160 million in annual recurring revenue. This acquisition may alienate Hornet Security's managed service provider (MSP) partners if there are changes in pricing, support models, or access to services, creating an opportunity for competitors to attract disaffected partners.

Arm is rebranding its system-on-a-chip product designs to focus on power savings for artificial intelligence workloads, targeting sectors like automotive and cloud computing. The company reported a significant revenue increase, driven by licensing and royalty revenue. Meanwhile, Box is enhancing its collaboration with Microsoft by introducing an AI agent that integrates with Microsoft 365 Copilot, allowing users to analyze documents and automate tasks more efficiently. These moves reflect the industry's shift towards AI integration and the importance of aligning with existing platforms to deliver value.

Hewlett Packard Enterprise (HPE) has introduced updates to its Morpheus software and VM Essentials offerings, promising substantial cost savings for businesses in the virtualization market. HPE's new pricing model, based on server sockets rather than cores, aims to provide significant financial advantages, especially as VMware faces scrutiny over its pricing strategies. Additionally, the podcast discusses the challenges posed by shadow AI and the evolving landscape of artificial intelligence, emphasizing the need for governance and transparency as organizations increasingly adopt AI tools without formal approval. The episode concludes with a reflection on the implications of AI in education, highlighting the growing use of AI tools by professors and the concerns raised by students regarding the authenticity of their learning experience.

Four things to know today

00:00 Charter-Cox Merger and Proofpoint’s $1B Hornet Deal Signal New Era of Scale and Specialization in Tech Services

03:38 From Chips to Content: Arm and Box Shift Strategies to Embed AI Across Cloud, Automotive, and Microsoft 365 

05:39 HPE Launches Morpheus and VM Essentials Updates With Up to 90% Savings Over VMware Licensing 

07:45 Shadow AI, Specialized Models, and Student Backlash: The Growing Pains of Enterprise AI Adoption 

Supported by:  https://mspradio.com/engage/

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/@businessoftech

Bluesky: https://bsky.app/profile/businessof.tech

Data silos are significantly hindering AI innovation, as highlighted by a recent report from Infanti. The survey of over 1,200 IT and cybersecurity professionals revealed that more than half of the respondents experience isolated data within their organizations, leading to inefficiencies and slow security responses. Nearly 30% of IT professionals reported that these data deficiencies obstruct their ability to effectively utilize AI tools. Experts emphasize the necessity for a comprehensive data strategy that includes governance, quality, and performance to foster innovation and avoid stagnation in AI projects.

In the medical field, radiologists are experiencing growth rather than extinction due to advancements in AI. The Association of American Medical Colleges predicts a shortage of up to 42,000 radiologists by 2033, yet AI is proving to be an essential tool for these professionals. At institutions like the Mayo Clinic, AI has enabled rapid measurements and early disease detection, leading to a 55% expansion in their radiology department and the development of over 250 AI models to enhance diagnostic capabilities.

Public relations professionals are adapting to the rise of AI by recognizing the importance of engaging with journalists to influence AI chatbots. Research indicates that authoritative journalism has a more significant impact on how AI platforms generate responses about companies than social media campaigns. This shift underscores the need for firms to prioritize earned media and thought leadership as part of their brand strategy, especially as AI continues to shape public perception.

Lastly, companies like SuperOps and TD Cynics are making strides in AI integration. SuperOps has relaunched its AI-powered platform, Monika, which offers various levels of AI autonomy to enhance IT operations for managed service providers. Meanwhile, TD Cynics has updated its Destination AI program to help partners transition from AI exploration to execution, providing tools and frameworks that align technical skills with specific AI solutions. These developments highlight the growing importance of AI in various sectors and the need for organizations to adapt their strategies accordingly.

Four things to know today

00:00 Want AI to Work? Fix Your Data First—Then Look at Radiologists for What’s Next

06:01 OpenAI Rolls Out GPT-4.1, Deepens Microsoft Integration, and Launches Safety Hub for Greater Transparency

09:18 AI Gets Practical—SuperOps Wants to Automate Your Ops While TD SYNNEX Helps You Sell It

12:29 LastPass Expands into SaaS Visibility, Challenging Lightweight Shadow IT Tools with Business Max Tier

This is the Business of Tech.   

Supported by:  

https://cometbackup.com/?utm_source=mspradio&utm_medium=podcast&utm_campaign=sponsorship

https://getflexpoint.com/msp-radio/

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/@businessoftech

Bluesky: https://bsky.app/profile/businessof.tech

The European Vulnerability Database (EUVD) has officially launched, providing a vital platform for monitoring critical security flaws amid challenges faced by the U.S. in cybersecurity funding and management. This initiative aims to enhance transparency and deliver essential information on vulnerabilities, addressing gaps left by the U.S. Common Vulnerabilities and Exposures program, which has been hindered by budget cuts and operational delays. The EUVD not only identifies disclosed bugs but also offers real-time updates on critical vulnerabilities, ensuring users have access to the latest security risk information.

As the EUVD begins operations, it highlights a strategic divergence in cybersecurity approaches between the EU and the U.S., which could have direct implications for Managed Service Providers (MSPs) and their clients. If U.S. vulnerability reporting continues to decline, there may be a shift towards EUVD as a primary source for global security tooling and threat feeds. This would necessitate a reevaluation of the sources used for threat detection and patch prioritization by providers, especially if vendor feeds start integrating EUVD data more directly.

In the realm of artificial intelligence, tech executives are increasingly adopting agentic AI, with nearly half of respondents in a recent survey indicating they have begun implementing such systems. However, despite the enthusiasm, many organizations are struggling to achieve significant returns on their AI investments, with only a small percentage reporting successful scaling of AI initiatives. The disconnect between ambition and execution presents an opportunity for IT service providers to bridge the gap and help organizations effectively deploy AI solutions.

Additionally, product-related news highlights the launch of new tools aimed at enhancing cybersecurity and operational efficiency for MSPs. Coro has introduced a Security Awareness Training module to combat phishing attacks, while Sophos has launched a program to help MSPs expand their cybersecurity offerings. FlexPoint and StackPak have also secured funding to enhance their platforms, focusing on automating payment processes and improving vendor management, respectively. These developments underscore the growing importance of AI-driven operational tools and the need for MSPs to deepen their involvement in their clients' business operations.

Four things to know today

00:00 Europe Launches Public Vulnerability Database as U.S. Transparency Falters

04:29 Despite Bold Claims on Agentic AI, Most Firms Struggle to Scale—AT&T’s Open-Source Model Stands Out

07:56 From Phishing Defense to AI Payments: Vendors Equip MSPs to Tackle Operational Complexity

11:26 Overpatching May Be a Bigger Risk Than Underpatching, Gartner VP Warns

Supported by:  https://afi.ai/office-365-backup/

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/@businessoftech

Bluesky: https://bsky.app/profile/businessof.tech

Remote work is driving a significant startup boom, reshaping the IT services market. A recent study indicates that companies with higher levels of remote work during the COVID-19 pandemic have seen a notable increase in employee startups, with an estimated 11.6% of new business formations attributed to this trend. Despite major corporations reinstating return-to-office mandates, remote work adoption in the U.S. has risen from 19.9% in late 2022 to 23.6% in early 2025, highlighting a growing demand for tools and services that support distributed teams. This shift presents both opportunities and challenges for employers, as they risk losing key talent to new ventures while also facing higher employee attrition rates.

The insurance industry is beginning to address the risks associated with artificial intelligence (AI) by offering new products to cover potential losses from AI-related errors. Lloyds of London has introduced a policy that protects businesses from legal claims arising from malfunctioning AI systems, reflecting a growing recognition of AI as an operational risk. This development raises important questions about accountability and liability when AI systems fail, as seen in recent incidents involving customer service chatbots. As insurers start to underwrite AI risks, companies must adapt their service level agreements and governance structures to meet new requirements.

The Cybersecurity and Infrastructure Security Agency (CISA) has announced a significant change in how it shares information, focusing on urgent alerts related to emerging threats while reducing routine updates. This shift, coupled with budget cuts that could reduce CISA's funding by 17%, raises concerns about the agency's capacity to respond to increasing cyber threats. IT services firms and cybersecurity vendors must adapt to this new landscape, as the responsibility for threat detection and response shifts more towards the private sector. Organizations that previously relied on CISA for support may find themselves facing increased operational risks due to reduced visibility and slower response times.

In a related development, Microsoft has extended support for its Office applications on Windows 10 until October 2028, allowing users more time to transition to Windows 11. This decision reflects a broader trend in the technology sector, where companies are adapting their support strategies to meet user needs. By decoupling the upgrade cycles for Windows and Office, Microsoft acknowledges the resistance to forced upgrades and the importance of maintaining enterprise customer relationships. This extension provides IT service providers with additional time for operational planning while emphasizing the ongoing need for modernization in the long term.

Four things to know today

00:00 Remote Work Fuels Startup Surge, Alters IT Talent Strategies Amid Growing Demand for Flexibility

05:07 From Chatbot Lawsuits to Pontifical Warnings: AI Errors Now Seen as Business and Social Risk

07:57 CISA Alert Shift and Budget Cuts Signal Rising Cybersecurity Burden for Private Sector

10:08 Office Gets a Lifeline on Windows 10: Microsoft Decouples OS and App Upgrades Through 2028

Supported by: https://syncromsp.com/

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/@businessoftech

Bluesky: https://bsky.app/profile/businessof.tech

The recent U.S.-China tariff truce has led to a significant surge in global markets, with the U.S. reducing tariffs on Chinese goods from 145% to 30% and China lowering its tariffs on American imports from 125% to 10%. While this agreement has provided short-term relief, it has also triggered caution among Chief Information Officers (CIOs), who are now deferring IT projects and prioritizing cost management. A survey indicates that nearly two-thirds of IT leaders are focusing on cost control, with many reporting delays in discretionary IT spending, reflecting a shift from initial optimism to a more cautious approach.

In the realm of artificial intelligence, the U.S. Copyright Office has issued a report warning that generative AI companies may be infringing copyright laws by using creators' works without permission. This has raised significant legal and political concerns, especially following the dismissal of the office's director shortly after the report's release. The implications for IT service providers are profound, as they must now navigate increased legal ambiguity and compliance risks related to the provenance of training data used in AI models.

Moreover, a recent survey revealed that many business leaders who implemented AI-driven layoffs regret their decisions, with over half acknowledging that their choices were misguided. As organizations face a global skills shortage, experts caution against hastily reducing headcount without a strategic plan for workforce transformation. The Society for Human Resource Management reports that a significant portion of jobs is at risk of displacement due to automation, emphasizing the need for reskilling and upskilling workers in vulnerable roles.

Finally, the emergence of Answer Engine Optimization (AEO) marks a shift in digital marketing strategies, focusing on optimizing content for AI-driven conversational interfaces rather than traditional search engine optimization. As generative AI platforms reshape how consumers access information, businesses must adapt their content strategies to remain visible in an evolving digital landscape. This shift underscores the importance of providing tangible value in services, as consumers increasingly prioritize measurable business outcomes over ideological narratives.

Four things to know today

00:00 Markets Rally on U.S.–China Tariff Truce, But CIOs and Consumers Signal Deeper Economic Uncertainty

05:32 Copyright, Click-to-Cancel, and the Rise of AI Oversight: Three U.S. Signals IT Leaders Shouldn’t Ignore

09:42 Automation Without Alignment: Firms That Cut Staff for AI Now Face Strategic Reversals

13:06 AI-Native Discovery Rises: Answer Engine Optimization Signals SEO’s Next Evolution

Supported by: 

 https://cometbackup.com/?utm_source=mspradio&utm_medium=podcast&utm_campaign=sponsorship

https://www.huntress.com/mspradio/

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/@businessoftech

Bluesky: https://bsky.app/profile/businessof.tech

Mousa Hamad, an expert in procurement and vendor management, shares insights from his extensive career in IT operations and business transformation. He emphasizes the importance of being customer-oriented and empathetic, drawing from his experiences on the front lines of IT. Hamad recounts a significant project where he tackled SaaS cost management by consolidating contracts and implementing a platform called Zylo, which streamlined the process and improved contract hygiene. This initiative not only saved costs but also enhanced his role within the organization, showcasing the value of effective vendor management.

Hamad discusses the alignment of procurement with organizational goals such as speed, innovation, and security. He highlights the necessity of building intentional processes that involve key stakeholders like InfoSec and legal teams early in the procurement process. By doing so, organizations can avoid unnecessary delays and ensure that purchases align with budgetary constraints. He stresses that having the right tools and processes in place is crucial for managing vendor relationships effectively and achieving operational efficiency.

The conversation also delves into measuring the success of procurement processes. Hamad explains how tracking the time taken for approvals and vendor engagements can lead to significant improvements in efficiency. By establishing key performance indicators (KPIs) and engaging vendors well in advance of contract renewals, organizations can negotiate better terms and reduce costs. This proactive approach not only enhances speed but also ensures that companies are getting the best value from their vendor relationships.

Finally, Hamad reflects on the challenges of managing rapid team growth and maintaining operational consistency across diverse teams and cultures. He advocates for a people-first approach, emphasizing the importance of communication and empathy in IT leadership. By fostering a culture that values understanding and support, organizations can navigate the complexities of growth while ensuring that both employees and customers feel valued. Ahmad's insights provide a roadmap for IT leaders looking to balance operational demands with a commitment to people-centric practices.

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/@businessoftech

Bluesky: https://bsky.app/profile/businessof.tech

Srinivas Krishnaswamy, author of "Inbound Marketing in the Age of GPTs," discusses the transformative impact of AI on customer search behaviors and marketing strategies for Managed Service Providers (MSPs). He emphasizes that traditional methods, particularly reliance on Google for information discovery, are evolving. With the rise of generative AI tools like ChatGPT, customers are increasingly turning to these platforms for tailored responses, which necessitates a shift in how MSPs approach their marketing efforts.

Krishnaswamy highlights the importance of understanding the changing dynamics of search. While Google continues to dominate, the volume of searches is increasing, and the landscape is becoming more complex. He points out that MSPs must adapt to this new reality by optimizing their online presence not just for Google, but also for AI-driven platforms. This includes implementing schema markup on websites to enhance discoverability and ensuring that content is relevant and valuable to potential customers.

The conversation also delves into the significance of community-based marketing. Krishnaswamy advises MSPs to identify where their target customers congregate, whether online or at industry events, and to engage with them authentically. By providing valuable insights and solutions to their problems, MSPs can build credibility and authority in their niche. This approach not only helps in generating leads but also positions MSPs as trusted partners in their customers' decision-making processes.

Finally, the discussion touches on the potential pitfalls of over-automation in marketing. While AI tools can streamline content creation, Krishnaswamy warns against relying solely on them without human oversight. Instead, he encourages MSPs to use AI as a tool for brainstorming and generating ideas, while ensuring that the final content reflects their unique voice and expertise. By balancing technology with genuine engagement, MSPs can effectively navigate the evolving marketing landscape.

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/@businessoftech

Bluesky: https://bsky.app/profile/businessof.tech

Ransomware attacks have surged dramatically, particularly affecting small and mid-sized businesses (SMBs), which now experience ransomware in 88% of breaches. According to Verizon's 2025 data breach investigations report, ransomware was detected in 44% of over 12,000 data breaches, marking a 37% increase from the previous year. While the number of organizations paying ransoms has decreased, the FBI's report indicates that complaints related to ransom have risen by 9%, making it the top threat to critical infrastructure. The overall online crime losses surged by 33% in 2024, totaling $16 billion, with investment fraud linked to cryptocurrency accounting for the most significant financial losses.

A recent report from KeepAware highlights the security risks associated with employee use of web browsers in the workplace, revealing that over 70% of modern malware attacks originate from these unmonitored endpoints. Traditional security tools are ineffective at detecting threats within browsers, leading to increased vulnerabilities. Key findings show that 70% of phishing campaigns impersonate trusted platforms, and a significant portion of file uploads from company devices are directed to personal accounts without detection. This raises concerns about the basic security hygiene that many SMBs still lack, such as multi-factor authentication and unpatched systems.

Microsoft has announced a shift towards passwordless accounts by default, emphasizing the need for improved security practices. This change comes in light of significant security breaches, including one involving Defense Secretary Pete Hedgeseth, whose reuse of passwords across multiple accounts raised concerns about national security. Microsoft has dedicated substantial resources to strengthen its systems post-breach, migrating cryptographic keys and eliminating outdated systems. However, the underlying issue of human negligence remains a critical challenge, as advanced technology cannot compensate for poor decision-making and lack of user training.

Enable reported its first quarter 2025 results, showcasing a revenue of $118.2 million, reflecting a 3.9% year-over-year growth. Despite exceeding revenue guidance, the company experienced a net loss of $7.2 million, raising concerns about market saturation and pricing pressure in the managed services software ecosystem. The discussion highlights the importance of understanding the dynamics of the MSP market, where churn is sticky and expansion is slow. As the podcast concludes, listeners are encouraged to reflect on the implications of geopolitical and trade policies on tech supply chains and the necessity of modernizing security practices to mitigate risks

Four things to know today

00:00 Ransomware, Browser Risks, and Record Losses: 2025 Security Reports Point to a Failure of Fundamentals

04:11 Password Reuse, Passkey Hype, and Microsoft’s Security Reckoning: What the Latest Breaches Reveal About Culture and Complexity

07:49 Durable But Not Disruptive: N-able’s Q1 Results Reflect Sluggish MSP Software Growth and Operational Pressure

11:53 Tariffs, Tech Gaps, and Legal Risks: The Hidden Pressures Facing U.S. SMBs and Security Leaders

Supported by:  https://afi.ai/office-365-backup/

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/@businessoftech

Bluesky: https://bsky.app/profile/businessof.tech

Top-performing IT solution providers are experiencing record profitability, achieving over 19% adjusted profit margins for the fifth consecutive year, despite a slowdown in revenue growth. The latest report from Service Leadership indicates that while managed service providers (MSPs) saw revenue growth of only 7.1% in 2024, their adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) grew at a more robust rate of 13%. This trend highlights the importance of operational maturity and cost control as key drivers of profitability in the industry, suggesting that MSPs should focus on enhancing their operational processes rather than solely pursuing top-line growth.

The podcast also discusses the rising use of artificial intelligence (AI) tools among office workers, with nearly half utilizing tools not provided by their employers. This covert usage raises concerns about data privacy and compliance with company policies. A report from Ivanti reveals that 42% of employees are using AI in their daily tasks, a significant increase from the previous year. The discussion emphasizes the need for organizations to prioritize data quality and governance, as the responsibility for data modeling shifts to operational layers where real-time decisions are made.

Google is making significant changes to its search engine, introducing an AI Mode Search Engine tool that will provide AI-generated responses instead of traditional links. This shift could fundamentally alter how users access information, posing challenges for IT service providers and content creators who rely on traditional SEO strategies. The integration of AI into search engines raises questions about the future of content discovery and the potential erosion of Google's dominance as the default search engine, especially with Apple considering AI-driven search options for its Safari browser.

Arctic Wolf has announced an increase in its security operations warranty to $3 million, the largest in the industry, aimed at enhancing customer trust and positioning its endpoint security solutions as enterprise-grade. This move reflects a growing trend among vendors to share risk with clients, emphasizing the importance of trust in a competitive market. The podcast concludes by highlighting the need for IT service providers to adapt to these changes, focusing on shared risk and high assurance as key selling points in a rapidly evolving landscape.

Four things to know today

00:00 Top IT Providers Maintain 19%+ Profit Margins for Fifth Year as Valuations Soar

03:12 As Employees Go Rogue with AI, Poor Data and Bad Prompts Threaten Reliability and Trust

07:53 Google’s AI Push Redefines Information Discovery—Content Creators and IT Firms Brace for Fallout

12:18 With $3M on the Line, Arctic Wolf Turns Warranty into a Sales Weapon

Supported by:  https://syncromsp.com/

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/@businessoftech

Bluesky: https://bsky.app/profile/businessof.tech

AI tools are increasingly leaking sensitive data, with a recent report revealing that 68% of organizations have experienced data leaks due to employees using artificial intelligence tools. Despite a high level of confidence among security leaders—90% believe their security measures are effective—more than half reported regular malware and phishing incidents linked to improper AI implementation. The report highlights a significant disconnect between perceived security and actual threats, with only 23% of organizations having established comprehensive AI security policies. This underscores the urgent need for tailored security protocols as AI technologies become more integrated into daily operations.

Business leaders are eager to harness the benefits of generative AI, yet many express uncertainty about their organizations' readiness for data and AI integration. A survey indicated that while 79% of leaders expect a competitive advantage from generative AI within the next 18 months, only 13% feel extremely confident in their data and AI maturity. Key challenges include data accuracy, AI integration issues, and ethical concerns surrounding governance and trust. Small businesses, in particular, report that AI has not met their expectations, with many believing they adopted the technology prematurely.

OpenAI's recent announcement that its nonprofit organization will continue to control its for-profit division raises questions about its commitment to its mission of ensuring that artificial general intelligence benefits all of humanity. Despite raising a record $40 billion in private funding, OpenAI is reportedly losing billions annually due to high operational costs. This situation highlights the tension between its mission-driven narrative and the financial realities of operating a tech company, emphasizing the need for IT services firms to diversify their vendor strategies and assess platform risks.

The podcast also discusses a troubling security breach involving U.S. Secretary of Defense Pete Hedgeseth, who reportedly used an unsecured internet connection to install a messaging application on Pentagon devices. This incident raises significant cybersecurity concerns and reflects a broader governance failure at high levels of government. The misuse of messaging apps within sensitive environments undermines efforts to enforce cybersecurity accountability in the private sector, making it harder for IT service providers to advocate for policy compliance among their clients. The episode concludes by emphasizing the importance of governance as a strategic risk mitigation tool in the face of evolving cybersecurity challenges.

Four things to know today

00:00 AI Adoption Outpaces Readiness: New Reports Show SMBs Struggle with Data, Security, and Value Realization

04:41 OpenAI Says It’s Nonprofit-First—But Billion-Dollar Burn Rates Tell Another Story

06:10 AI-First at Duolingo: What the Language App’s Automation Shift Reveals About Tech’s Changing Workforce Model

08:02 Defense Secretary’s Signal Slips Are a Signal Problem for Everyone’s Cyber Policies

Supported by: 

https://getflexpoint.com/msp-radio/

https://www.huntress.com/mspradio/

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/@businessoftech

Bluesky: https://bsky.app/profile/businessof.tech