Slide, a new backup and disaster recovery appliance designed for managed service providers, was introduced by former Datto founders Austin McCord and Michael Fass at the right-of-boom cybersecurity conference in Las Vegas. The appliance, which is slightly larger than an Apple Mac Studio, boasts a storage capacity of up to 16 terabytes and operates at speeds capable of saturating a 10-gigabit network connection. McCord emphasized the appliance's speed and efficiency, claiming it is significantly faster than existing market solutions. The founders aim to foster a culture of connection and support, allowing users to easily cancel their service with a single click, which they view as a reflection of a customer-centric philosophy.

Apple has unveiled its first in-house cellular modem, the C1, which will debut in the iPhone 16E, marking a significant step away from reliance on Qualcomm chips. The C1 modem is touted as the most power-efficient modem ever included in an iPhone, promising reliable 5G connectivity. While the iPhone 16 and 16 Pro will continue to use Qualcomm technology for the time being, Apple is strategically testing the C1 modem in a budget model to assess its performance without risking issues for premium users. This move aligns with Apple's broader goal of controlling its hardware stack and optimizing performance across its devices.

In the realm of artificial intelligence, xAI has launched Grok 3, a new model that boasts enhanced capabilities and has been trained on a significantly larger dataset. Grok 3 has achieved impressive scores on various benchmarks, including math performance, and features a deep search capability that enhances its reasoning. However, early testing has revealed some limitations, such as citation accuracy and humor comprehension. The company plans to open-source Grok 2 to address previous criticisms regarding biases, while also introducing a new subscription plan for Grok 3.

Lastly, the podcast discusses potential acquisition talks surrounding Trend Micro, a Japanese cybersecurity firm, which is reportedly valued at approximately $8.54 billion. The discussions involve several private equity firms, and if the acquisition goes through, it could lead to significant changes in Trend Micro's product roadmap and support structure. Additionally, Sophos has announced a partnership with Pax8 to streamline security management for service providers, indicating a trend towards consolidating vendor relationships in the cybersecurity space. This partnership aims to simplify access to a wide range of security solutions, although it remains to be seen whether Sophos can effectively compete with existing offerings in the marketplace.

Four things to know today

00:00 Cancel Anytime with One Click? Slide’s Backup Solution Calls Out the Industry’s Biggest Flaws

04:21 Apple Unveils C1 Modem in iPhone 16e, Taking First Steps Away from Qualcomm

06:19 xAI’s Grok 3 Hits the Scene with More Power, More Data, and… More Questions

08:37 Big Money Meets Big Security: Trend Micro Buyout Talks Heat Up While Sophos Joins the Pax8 Party

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Acer's CEO Jason Chen announced a significant price increase for laptops in the United States, set to rise by 10% starting in March 2025. This decision is attributed to the incoming tariffs from the Trump administration, which are expected to impact products imported after February. The Consumer Technology Association estimates that this price hike could cost U.S. consumers a staggering $143 billion, as 80% of laptop imports come from China. Major brands, including Apple, Dell, and HP, are likely to be affected, with Acer's high-end gaming laptop, the Predator Triton, seeing a price jump from $3,799 to $4,178.

The implications of these price increases extend beyond consumer costs, affecting IT service providers and their procurement strategies. As hardware costs rise, businesses may shift towards longer device life cycles, focusing on maintenance and upgrades rather than frequent hardware refreshes. This shift could also boost the refurbished and used hardware markets as companies seek to mitigate costs. IT service providers must prepare for pricing volatility and engage in discussions with clients about alternative solutions to navigate these changes effectively.

In addition to the laptop price hike, the podcast discusses the ongoing encryption battle involving Apple and the U.K. government's request for a backdoor into iCloud data. U.S. lawmakers have expressed strong opposition to this request, warning that it could compromise the security of American data and set a dangerous precedent for data sovereignty. The potential modifications to the 2018 Cloud Act could complicate data requests from foreign governments, raising concerns about localized data storage and compliance.

Lastly, the episode highlights new developments in the managed service provider (MSP) market, including CompTIA's launch of the CloudNetX certification aimed at senior IT professionals and ZofiQ's AI-driven solution for help desk efficiency. The podcast also covers Xtreme Networks' introduction of a consumption-based billing model for MSPs and AvePoint's new platform designed to enhance revenue streams for service providers. These innovations reflect the evolving landscape of IT services, emphasizing the need for adaptability and strategic planning in response to market changes.

Four things to know today

00:00 Sticker Shock Incoming: Acer Says Laptop Prices Are Going Up—And It’s Just the Beginning

04:09 Apple’s Encryption Battle Heats Up—Will Governments Force a Backdoor into Your Data?

06:46 CompTIA Enters the High-Level Cloud Cert Game—But Will MSPs and IT Pros Buy In?

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Small businesses across the United States are grappling with the effects of tariffs imposed on imports, particularly from China, Canada, and Mexico. These tariffs have led to increased manufacturing costs, prompting many business owners to raise prices for consumers. The situation is exacerbated by rising inflation, with the consumer price index showing a significant increase, particularly in grocery prices. As small businesses face these challenges, they are likely to tighten IT spending and seek lower-cost solutions, viewing IT as an administrative cost rather than a revenue driver.

The software-as-a-service (SaaS) market is experiencing notable growth, especially in the vertical SaaS segment, which has outpaced general SaaS applications. This growth is driven by businesses seeking industry-specific solutions to address unique challenges. Companies like Clio, which provides legal SaaS solutions, are capitalizing on this trend, achieving significant valuations. The demand for specialized consulting services in vertical SaaS is also increasing, as managed service providers aim to maintain a competitive edge in a complex ecosystem.

In Germany, the IT market is projected to grow significantly, driven by the adoption of IT solutions among small and medium enterprises. However, the country faces a talent shortage that hampers recruitment efforts. The integration of artificial intelligence in research is on the rise, with a notable percentage of researchers adopting AI technologies. This shift towards Industry 5.0 emphasizes a human-centric approach to production, creating both opportunities and challenges for IT service providers.

Recent research indicates that large language models can learn complex reasoning tasks effectively without extensive datasets, challenging the notion that massive data is necessary for fine-tuning AI models. This finding could lower the cost and resource burden for enterprises looking to customize AI solutions. Meanwhile, Kaseya is exploring options to raise nearly $4 billion in leveraged loans to refinance existing debt, highlighting the financial pressures companies face in balancing debt management with product investment. The implications of these financial strategies could affect the ability of companies to innovate and invest in their product offerings.

Four things to know today

00:00 Inflation Bites, Tariffs Sting—Can SaaS and Automation Keep SMBs Afloat?

04:47 AI, Industry 5.0, and IT Growth: Germany’s Tech Expansion Meets a Talent Shortage

07:37 Less Data, More Smarts? Study Says LLMs Don’t Need Massive Datasets to Learn

09:07 $4B in Loans? Kaseya’s Balancing Act Between Expansion and Expense

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Justin Kane, the founder and CEO of DoubleCheck, is revolutionizing the way small and medium-sized businesses (SMBs) approach cybersecurity by offering managed security services without the traditional managed service provider (MSP) model. His company focuses on providing essential cybersecurity solutions tailored specifically for businesses with 5 to 250 employees, particularly those in industries like legal, financial, and medical. By targeting the 25 to 75 employee range, DoubleCheck addresses the unique challenges faced by smaller organizations that may have limited IT resources but still require robust security measures.

Kane explains that many smaller businesses are now equipped to handle basic IT issues themselves, thanks to the prevalence of cloud-based solutions and a more tech-savvy workforce. This shift allows DoubleCheck to concentrate on delivering specialized security services without the need to manage everyday IT problems. Their pricing model is significantly lower than traditional MSPs, making cybersecurity accessible to businesses that might otherwise overlook it due to cost concerns. This approach enables them to implement effective security measures without overwhelming their clients with unnecessary services.

The conversation also delves into the importance of commitment from business owners in managing cybersecurity risks. Kane emphasizes that while DoubleCheck can provide the necessary tools and training, the responsibility ultimately lies with the business to enforce policies and ensure employee compliance. This partnership between the service provider and the client is crucial for maintaining a secure environment, especially in industries that handle sensitive information and financial transactions.

Kane's experience in the MSP sector led him to identify a gap in the market for cybersecurity services tailored to businesses that lack comprehensive IT support. By focusing solely on security, DoubleCheck aims to fill this void and help organizations implement essential protections against cyber threats. With a strong emphasis on automation and AI, the company streamlines its operations, allowing it to provide effective security solutions while minimizing labor costs.

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Nelson Gomes, CEO of Portalia Group and former MSP, discusses the evolving landscape of managed service providers (MSPs) in light of recent data indicating a shift in the American workforce towards larger businesses. With 53% of Americans now employed by companies with 500 or more employees, Gomes emphasizes the need for MSPs to pivot their sales strategies to target larger organizations rather than relying solely on small businesses. He notes that while the small business sector has traditionally been viewed as the backbone of the economy, the data suggests a significant consolidation trend that MSPs must adapt to.

The conversation also touches on the impact of big tech platforms like Facebook, Amazon, and Google on small businesses, highlighting the challenges these companies face in leveraging these platforms for advertising and sales. Gomes suggests that MSPs should not only recognize these challenges but also find ways to leverage these platforms to their advantage. He advocates for a shift towards digital marketing strategies, particularly for smaller MSPs, to enhance their outreach and client acquisition efforts.

Leadership changes at major MSP platforms, such as ConnectWise and Kaseya, are also discussed. Gomes views these changes as a natural evolution within the industry, suggesting that new leadership can bring fresh perspectives and innovations that ultimately benefit MSPs. He believes that both ConnectWise and Kaseya will continue to compete vigorously, with each offering unique advantages that MSPs can leverage to improve their service delivery and profitability.

Finally, Gomes highlights the recent acquisition of Orchestrate AI Labs by New Charter Technologies, which aims to integrate artificial intelligence into their service offerings. He praises this move as a forward-thinking strategy that allows MSPs to develop proprietary solutions rather than relying on third-party vendors. This acquisition reflects a broader trend in the industry where MSPs are increasingly investing in technology to enhance their service capabilities, ultimately positioning themselves to better meet the evolving needs of their clients.

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Dell's recent announcement mandating a full return to the office for employees living near an office marks a significant shift from its previous hybrid work policy. CEO Michael Dell emphasized the importance of in-person collaboration, arguing that brief face-to-face conversations can enhance productivity compared to lengthy email exchanges. However, this decision has led to a notable decline in employee morale, with satisfaction scores dropping sharply. While some flexibility remains for remote workers living far from an office, the overall sentiment among employees suggests widespread dissatisfaction with the move back to traditional office work.

In contrast, the Office of Personnel Management has exempted military spouses from the return-to-office mandate, allowing them to maintain their remote work arrangements. This decision highlights the complexities of return-to-office policies, which often prioritize employer interests over employee needs. Meanwhile, Google employees have expressed their concerns about job security through an internal petition, reflecting a broader trend of anxiety among workers in the tech industry amid ongoing layoffs and cost-cutting measures.

Despite the push for in-office work from companies like Dell, data from Ireland indicates a strong demand for remote and hybrid work arrangements, particularly in high-demand sectors such as software development. The report shows that a significant percentage of job postings mention flexible work options, suggesting that job seekers continue to prioritize remote work opportunities. This raises questions about whether companies are responding to genuine business needs or simply adhering to outdated managerial practices.

The podcast also delves into the changing landscape of vendor partner programs, with a trend toward consolidation as partners seek deeper, more strategic relationships with fewer vendors. Additionally, insights into the role of AI in software testing reveal that while AI can assist in generating tests, human oversight remains crucial for managing complex software development tasks. The discussion emphasizes the need for a balanced approach to tech policy coverage, considering both local and national influences as well as the impact on consumers.

Three things to know today

00:00 Return to Office or Bust? Dell, Federal Workers, and Job Market Trends Paint a Complicated Picture 

05:51 More Strategy, Fewer Vendors: Why the Partner Landscape Is Changing Fast

07:33 AI Speeds Up at Microsoft, Reshapes Software Testing, and Faces Policy Challenges—Are We Keeping Up? 

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Managed service providers (MSPs) are facing significant challenges as recent data reveals that 18% are operating at a loss, a concerning increase from 14% in the previous quarter. While overall managed service revenue growth has slowed to just 1%, profitability remains relatively high, with an average EBITDA of 11.1%. However, the decline in services revenue, particularly among value-added resellers (VARs), indicates a potential shift in client spending habits, raising questions about the sustainability of traditional service contracts. This trend suggests that clients may be reverting to transactional IT spending rather than fully managed services.

In the realm of artificial intelligence (AI), a report from NTT Data highlights a growing responsibility gap in AI adoption, with over 80% of business leaders acknowledging that governance is not keeping pace with technological advancements. The divide among executives regarding the prioritization of responsibility versus innovation complicates the landscape, as 89% express concerns about security risks associated with AI, yet only 24% feel prepared to manage these risks. This lack of alignment could hinder AI adoption and create compliance challenges, emphasizing the need for structured governance policies.

OpenAI has announced plans for its upcoming GPT-4.5 and GPT-5 models, aiming to unify its product lineup and enhance functionality across various tasks. The new models will offer different levels of intelligence based on user subscriptions, with a focus on addressing ethical concerns in AI, such as misinformation and self-harm. Meanwhile, Apple is partnering with Alibaba to integrate AI technology into its iPhones, reflecting a strategic move to enhance its AI capabilities while navigating regulatory landscapes.

CrowdStrike has introduced Charlotte AI Detection Triage, an AI-driven tool designed to automate alert assessments in security operations, achieving over 98% accuracy and significantly reducing manual workloads. This development underscores the increasing necessity for AI-driven automation in cybersecurity, as adversaries can now exploit vulnerabilities within minutes. The integration of AI into existing platforms, rather than as standalone tools, is preferred by cybersecurity professionals, highlighting the importance of delivering value through AI-enhanced solutions.

Three things to know today

00:00 Managed Services Hit Growth Wall as 18% of MSPs Operate at a Loss

06:08 OpenAI Plans GPT-4.5 and GPT-5 While Apple Taps Alibaba for AI

09:29 With Breaches Happening in Minutes, CrowdStrike Bets on AI-Driven Security Automation

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Artificial intelligence agents are facing significant challenges when tasked with complex responsibilities, as highlighted by a recent study from Langchain. The research indicates that AI performance deteriorates under cognitive overload, with one model's effectiveness dropping to just 2% when managing more than seven domains. This finding emphasizes the need for businesses to design AI systems that can effectively manage complexity rather than assuming that AI can scale to handle human-like multitasking. The implications are particularly relevant for industries reliant on automation, such as customer service and IT operations.

In a related development, researchers from Stanford and the University of Washington have introduced a new AI reasoning model called S1, which can be trained at a fraction of the cost of existing high-end models. This innovation raises concerns about the commoditization of AI, as smaller teams can replicate sophisticated models with minimal resources. Meanwhile, Hugging Face has quickly developed an open-source AI research agent that aims to compete with OpenAI's offerings, showcasing the rapid advancements in AI capabilities and the importance of community contributions in this space.

The podcast also discusses the ongoing legal battles surrounding AI and copyright, particularly the recent ruling in favor of Thomson Reuters against Ross Intelligence. This case underscores the complexities of how AI tools are trained using copyrighted material and sets a precedent that could impact future AI developments. As AI continues to evolve, the legal landscape surrounding its use and the rights of content creators remains a critical area of concern.

Finally, the episode touches on the rising unemployment rate in the IT sector, attributed to the increasing influence of AI and automation. The data reveals a significant jump in unemployment among IT workers, with many routine jobs being automated rather than replaced. This shift highlights the need for IT professionals to upskill and adapt to the changing job market, focusing on areas such as AI integration and cybersecurity, as traditional software development roles decline.

Four things to know today

00:00 AI Agents Struggle Under Pressure—More Complexity Means Less Accuracy

03:23 Big AI, Big Trouble? Low-Cost Models Challenge Industry Leaders

07:17 Apple Faces UK Encryption Fight, CISA’s Role Strengthens, and AI Copyright Battle Heats Up

10:38 AI Disrupts IT Hiring: Fewer Software Jobs, More Automation, and Higher Unemployment

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New Charter Technologies has made a significant move by acquiring Orchestrate AI Labs, a company focused on integrating artificial intelligence into managed service provider (MSP) operations. This strategic acquisition aims to enhance New Charter's capabilities by combining human expertise with AI automation, positioning the company as a leader in the evolving IT landscape. Peter Melby, CEO of New Charter, expressed enthusiasm about leveraging Orchestrate's AI technology, while Ryan Barton, the CEO of Orchestrate AI, has joined New Charter as Chief Innovation Officer, emphasizing the transformative potential of AI in the MSP industry.

The podcast also discusses the notable decline in ransomware payments, which dropped by 35% to approximately $814 million in 2024, following law enforcement's disruption of several major ransomware gangs. Despite this decrease in payments, the number of reported ransomware incidents on dark web leak sites has reached an all-time high, indicating that while attackers are targeting more victims, fewer are complying with ransom demands. The report highlights that automated tools played a role in 87% of attacks, and sectors such as education, healthcare, and technology were the primary targets.

Additionally, the episode addresses the growing concerns surrounding the use of generative AI tools in organizations. A report revealed that companies typically have 67 generative AI tools operating without proper licensing, with 90% lacking approval. The podcast emphasizes the need for businesses to manage AI tool usage rather than impose outright bans, as many organizations are investing in strategies to prevent data leaks and control inputs. The average organization’s lack of visibility into how sensitive data is processed poses significant security and compliance risks.

Finally, the podcast highlights research indicating that AI is primarily viewed as a collaborator rather than an independent assistant, with 57% of AI use focused on augmenting human capabilities. However, there are concerns that over-reliance on AI could lead to a decline in critical thinking skills among users. The findings suggest that organizations should prioritize enhancing human expertise while actively managing the risks associated with cognitive complacency, particularly in high-stakes industries where precision and accountability are essential.

Four things to know today

00:00 Good News: Ransomware Payments Are Down. Bad News? Attacks Are Up.

04:53 Banning AI Isn’t the Answer—Managing AI Usage Is. Here’s Why.

06:21 AI Can Boost Productivity, but Too Much Trust in It? That’s a Problem

09:15 Big AI Move: New Charter Technologies Bets on Automation with Orchestrate AI Labs Deal

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Amazon has reported better-than-expected earnings for the fourth quarter of 2024, with a significant increase in net income attributed to cost-cutting measures and strength in its cloud business. Despite this positive performance, the company provided disappointing guidance for the current quarter, projecting sales that fall short of analysts' expectations. Amazon Web Services (AWS) continues to be a dominant player in the cloud market, but its growth rate of 19% lags behind competitors that are experiencing growth rates above 30%. This slower growth raises concerns about AWS's position in the increasingly competitive landscape of AI workloads.

The labor market is showing signs of cooling, with recent revisions indicating a slower decline in job growth than previously anticipated. The tech sector added nearly 7,000 jobs in January, but the tech unemployment rate has risen slightly to 2.9%. A survey revealed that over 75% of businesses are struggling to meet their IT talent needs, particularly in areas like machine learning and cybersecurity. This has led many companies to focus on upskilling existing employees to address the talent shortage.

In the small business sector, transactions rose by 5% in 2024, with a notable increase in technology-related acquisitions. Despite inflation and rising costs, demand for stable, recession-resilient businesses is growing, prompting brokers to predict an increase in seller financing amid tight lending conditions. The surge in technology transactions indicates a strong interest in IT services and software firms, which may be well-positioned for growth and acquisitions in the current market environment.

Microsoft's Copilot Plus PCs have struggled to gain traction in the market, with disappointing sales figures attributed to high prices and a lack of compelling applications. Consumers are not actively seeking AI features, highlighting a disconnect between marketing efforts and real-world demand. This situation underscores the broader challenges of AI adoption, as companies like Microsoft work to clarify the value of their products in a competitive landscape.

Four things to know today

00:00 Tech Talent in Demand as Companies Struggle to Fill AI and Cloud Roles

05:33 Copilot+ PCs Struggle as Shoppers Say ‘No Thanks’ to AI Upgrades

06:55 Amazon’s Profits Jump, But Is AWS Falling Behind in the AI Cloud Race?

09:13 SolarWinds Sells for $4.4B—And N-Able Might Be Next

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