IBM and Intel have recently reported their earnings, revealing significant challenges despite some positive figures. IBM exceeded earnings expectations with a revenue of $14.54 billion, but its net income fell sharply due to the U.S. government's cost-cutting measures, resulting in a loss of $100 million from canceled contracts. Meanwhile, Intel reported a net loss of $8 million, with stagnant revenues and a warning of potential layoffs as the company struggles to adapt to a competitive semiconductor market. Both companies face pressure to innovate and demonstrate value in a rapidly changing landscape.

In the fintech sector, Alternative Payments has successfully raised $22 million to enhance automation and accessibility for managed service providers (MSPs). The company aims to address the unique billing challenges faced by MSPs, which often deal with recurring billing and slow payment cycles. With plans for international expansion, Alternative Payments is focused on building a comprehensive financial services platform that can significantly improve processing times for its clients.

CyberVerify, a compliance platform developed by MSP Alliance, has announced enhancements to empower MSPs and software-as-a-service companies. The upgraded platform features a new user interface and a scoring model for measuring compliance maturity, along with an API for seamless integrations. These improvements aim to provide ongoing compliance visibility, moving away from traditional yearly audits, but the platform's success will depend on maintaining trust and independence in its scoring mechanisms.

The episode also highlights emerging trends in AI, with OpenAI introducing a lightweight version of its ChatGPT tool and a new open-source text-to-speech model from Nary Labs. These developments reflect a shift towards more localized and controllable AI solutions that prioritize user trust. Additionally, Microsoft's Work Trend Index report indicates a growing reliance on digital labor, emphasizing the importance of the human-to-AI agent ratio in organizational success. The episode concludes with a discussion on the simplicity and modularity of technology, as exemplified by Slate Auto's upcoming electric pickup truck, which aims to disrupt the automotive market with its minimalist design.

Four things to know today

00:00 Beneath the Earnings: IBM Faces Contract Fallout, Intel Shrinks While AI Still Lags—What MSPs Should Watch

05:32 From Cash Flow to Compliance: Two Platforms Aim to Automate the MSP Back Office—But Can They Deliver?

08:21 AI Goes Local: OpenAI, Dia, Meta, and LinkedIn Signal Shift Toward Speed, Trust, and Human-Like UX

11:46 Workforce Robots and Bare-Bones Pickups? This Week, Simplicity Steals the Show

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Maryland has introduced a new 3% sales tax on data and information technology services, set to take effect on July 1, 2025. This legislation expands the definition of taxable services to include essential IT offerings such as cloud storage, IT consulting, and cybersecurity. Experts warn that this tax could lead to increased costs for businesses, potentially discouraging innovation and prompting some to relocate to states with lower tax burdens. The implications of this tax extend beyond Maryland, signaling a potential trend where states may increasingly treat digital infrastructure as a taxable utility.

The introduction of this tax is seen as a precedent that could influence other states to follow suit if Maryland's implementation does not face significant pushback. Managed Service Providers (MSPs) and IT vendors will need to adapt to the new landscape, as the tax could compress margins and impact client retention. Businesses may need to communicate effectively with clients about the reasons for price increases and demonstrate the value of their services to justify these hikes. Additionally, the complexity of compliance with the new tax regulations will require providers to ensure their billing systems can handle the nuanced categorization of services.

In a related development, Microsoft has launched the Wave 2 spring release of its Microsoft 365 Copilot, which includes new features aimed at enhancing productivity through advanced AI capabilities. This update introduces an Agent Store for integrating third-party applications and tools that facilitate better management of AI agents. The enhancements signal Microsoft's commitment to embedding AI deeper into daily workflows, positioning Copilot as a platform that could redefine how work is conducted in organizations.

Furthermore, Cynomi has secured $37 million in funding to enhance its cybersecurity platform, focusing on developing agentic AI capabilities. This investment reflects a broader shift in the cybersecurity market towards strategic, continuous security solutions rather than merely providing tools. As demand for such services grows, MSPs must adapt to meet the evolving needs of their clients, moving towards outcome-based and intelligent security solutions. The podcast emphasizes the importance of advocacy within the MSP community to influence future legislation and avoid being treated as commoditized services.

Three things to know today

00:00 Maryland’s New 3% Sales Tax on IT Services Signals Broader Shift Toward Taxing Digital Infrastructure

05:58 Microsoft Expands 365 Copilot With AI Agents, Cross-App Search, and Agent Store in Major Spring Update

08:22 Cynomi Secures $37M Series B to Drive Agentic AI in Cybersecurity, Riding 3x ARR Growth and Rising MSP Demand

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Zendesk has made a significant shift in its pricing model by moving away from traditional seat licenses to an outcome-based pricing structure. This change, articulated by CEO Tom Eggemeier, means that customers will only pay when an AI agent successfully resolves a business problem. This approach aligns with a broader industry trend towards consumption-based pricing, where costs are directly linked to the value delivered rather than the number of licenses or usage. As organizations increasingly adopt AI technologies, this model could reshape the software landscape, pushing providers to rethink their value propositions and focus on delivering tangible business outcomes.

The Cybersecurity and Infrastructure Security Agency (CISA) is facing challenges as two high-ranking officials resign amid budget cuts that threaten to reduce its workforce by nearly 40%. The agency's Secure by Design initiative, aimed at enhancing software security, may be impacted by these changes, raising concerns about the future of national cybersecurity efforts. Additionally, CISA has halted the use of certain threat-hunting tools, which could further hinder its ability to address cyber threats effectively. The situation highlights the critical need for managed service providers (MSPs) to adapt their business models to incorporate security measures that align with evolving regulatory and customer demands.

Kaseya and other companies are introducing AI-driven tools designed to enhance IT management and cybersecurity for managed service providers. Kaseya's Spring 2025 release includes features that automate workflows and improve user experience, while Cork Protection has launched a tool to help MSPs quickly assess cyber insurance policies. These innovations reflect a growing trend in the industry to leverage AI for operational efficiency and improved service delivery. As MSPs adopt these technologies, they can better position themselves to meet client needs and navigate the complexities of cybersecurity.

OpenAI has partnered with The Washington Post to enable ChatGPT to summarize and link to the newspaper's reporting, marking a significant development in the relationship between AI and journalism. This collaboration aims to enhance the quality of information provided to users while raising questions about copyright and the reliability of AI-generated content. Despite OpenAI's advancements in research capabilities, concerns remain about the accuracy of AI in complex tasks. The partnership underscores the ongoing tension between the demand for high-quality information and the challenges of integrating AI into content creation and dissemination.

Four things to know today

00:00 Zendesk Drops Per-User Pricing—Now It’s Pay When AI Gets the Job Done

03:56 Cyber Shakeup: CISA Faces Staff Exodus and Tool Loss While Pentagon Tightens Software Security Standards

06:52 From Cyber Orchestration to Frontline AI: New Releases Highlight MSP-Centric Innovation Across the Ecosystem

10:35 As OpenAI Partners with Major Newsrooms, Benchmark Reveals Deep Research Still Struggles with Accuracy

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Ransomware attacks targeting small and medium-sized businesses (SMBs) have reached alarming levels, with a recent UK government survey revealing that 1% of organizations reported such incidents, affecting approximately 19,000 entities. This marks a significant increase from the previous year, highlighting a troubling trend where nation-state actors are increasingly focusing on SMBs due to their often inadequate cybersecurity measures. The survey also indicates a decline in board-level cybersecurity responsibility, with only 27% of businesses having a cyber specialist on their board, down from 38% four years ago. As the frequency of ransomware incidents decreases, the cost per incident is rising, emphasizing the need for resilience-focused security measures.

In addition to ransomware, a vulnerability in Google's OAuth system has been exploited by phishers to create sophisticated attacks that mimic legitimate emails from Google. This DKIM replay phishing attack allows hackers to bypass security checks, making it difficult for users to detect scams. A notable case involved a developer receiving a fraudulent email that appeared to be a legitimate security alert. This incident underscores the importance of updating security awareness training, as traditional methods may not adequately prepare users for such advanced phishing techniques.

Another significant security concern arose from a flaw in Gladinet's Centristack file-sharing platform, which allows remote code execution due to a deserialization issue linked to hard-coded cryptographic keys. This vulnerability has already been exploited in multiple cases, raising alarms within the cybersecurity community. Gladinet has advised customers to upgrade or change their keys to mitigate potential threats. Additionally, Microsoft acknowledged a flaw in its Intune device management tool that inadvertently allowed unauthorized Windows 11 upgrades, prompting organizations to revert affected devices.

On a different note, Wikipedia has partnered with Kaggle to create a machine-readable dataset of its content for training AI models, addressing the challenges posed by content scraping. This initiative aims to manage the rising costs associated with non-human traffic while protecting contributors' rights under Creative Commons licensing. Meanwhile, concerns have emerged regarding the impact of AI on human intelligence, with studies indicating that reliance on AI tools may inhibit critical thinking skills, particularly among younger users. As organizations navigate the complexities of AI integration, the need for resilient systems that can adapt to these changes becomes increasingly critical.

Four things to know today

00:00 Ransomware Evolves: Targeting Improves, Board Accountability Wanes, and SMBs Face Growing Geopolitical Risk

03:32 Secure by Default? Not This Week — Google, Microsoft, and Gladinet Say Otherwise

07:32 Wikipedia Feeds the AI Beast—But Wants to on Its Own Terms

10:04 AI Overload: How Education, Cognitive Skills, and Enterprise Strategy Are Buckling Under Pressure

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Small to medium-sized businesses (SMBs) are increasingly turning to third-party service providers to enhance their capabilities in artificial intelligence (AI) and hybrid cloud solutions. A recent Forrester report, commissioned by Crayon, indicates that 31% of surveyed leaders from Australia, New Zealand, India, and Southeast Asia plan to combine in-house teams with external providers to improve their AI capabilities within the next year. The report highlights a significant interest in AI, with 83% of respondents experimenting with free AI tools, although many are still in the exploration phase rather than implementation. Additionally, 87% of businesses are increasing their budgets for third-party services, signaling a shift towards advisory and pilot projects rather than traditional managed services.

In Europe, there is a growing trend among customers to seek alternatives to U.S. cloud service providers due to concerns over reliability, pricing, and data security. Discussions at the recent KubeCon EU event revealed a tripling of inquiries for local cloud solutions, with companies like NextCloud gaining traction. The dominance of major players like Amazon Web Services, Microsoft, and Google, which control about 70% of the European cloud market, is being challenged as organizations question their control over data and consider a transition to trusted local providers.

Meanwhile, U.S. manufacturing sentiment is declining, with many manufacturers bracing for recession-like conditions amid ongoing trade tensions. Surveys indicate a significant drop in optimism among factory owners, with the New York Federal Reserve reporting one of the lowest outlooks in over two decades. Although manufacturing output saw a slight increase in March, the overall landscape remains volatile, with future hiring intentions at their lowest since 2016. This juxtaposition of rising output against declining sentiment underscores the complexities facing the manufacturing sector.

Lastly, Synology is tightening its grip on hardware by implementing restrictions on the use of third-party hard drives in its future network-attached storage devices. Starting in 2025, only Synology-branded drives and those certified by the company will be supported for full functionality. This move raises concerns about vendor lock-in, particularly for managed service providers (MSPs) who have relied on Synology for its reliability and ease of use. Additionally, a cautionary tale emerges from U.S. Defense Secretary Pete Hegseth's misuse of Signal for sharing sensitive military information, highlighting the importance of operational security and the need for a strong cybersecurity culture within organizations.

Three things to know today

00:00 Tech Tides Are Shifting: SMBs Want Advice, Europe Wants Control, and U.S. Industry Feels the Strain

05:58 Hard Drives Locked Out: Synology Tightens the Rules, and MSPs Might Rethink Their NAS Game

07:32 He Did It Again: Hegseth’s Signal Habit Raises the Stakes for Cybersecurity Culture

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Jason Willis Lee, a specialized medical translator, discusses the impact of AI on the translation industry, particularly in the medical field. With a background in medicine and extensive experience in translating clinical trials, medical reports, and academic research, he has witnessed firsthand the disruption caused by AI technologies. While machine translation tools like Google Translate and DeepL have improved significantly, they still struggle with nuances and specialized terminology, which are crucial in medical translation. As a result, Willis Lee emphasizes the importance of human oversight in the translation process, particularly through post-editing of machine-generated content.

The conversation delves into the evolving landscape of the translation industry, where generalist translators are increasingly being squeezed out due to the rise of AI. Willis Lee notes that many translators are facing reduced income and job opportunities, particularly those who do not specialize in niche areas. He advocates for the necessity of niching down to survive in this changing environment, suggesting that specialized translators in fields like medical translation and linguistic validation will have better prospects than generalists.

Willis Lee also shares insights into his own career trajectory, highlighting the importance of investing in professional development and adapting to industry changes. He discusses the shift from high-volume, low-cost translation work to low-volume, high-value projects, encouraging aspiring translators to specialize early in their careers. He believes that those who can effectively leverage AI tools while maintaining a human touch will thrive, as they can offer a hybrid service that combines efficiency with quality.

Finally, he reflects on the opportunities that AI presents, arguing that it can enhance productivity and create new revenue streams for translators. By diversifying their services and exploring areas like consulting, affiliate marketing, and podcasting, translators can adapt to the changing landscape and find success. Willis Lee's perspective underscores the importance of resilience and innovation in navigating the challenges posed by AI in the translation industry.

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The podcast features a discussion on the intersection of artificial intelligence (AI), law, and ethics, with insights from attorney Brad Gross and AI governance expert Juliette Powell. As AI becomes increasingly integrated into the services provided by managed service providers (MSPs) and technology companies, the risks associated with compliance and unintended bias are growing. The conversation explores how businesses can navigate legal pitfalls while developing responsible and transparent AI strategies, emphasizing the importance of accountability and ethical considerations in AI deployment.

Juliette Powell highlights the need for organizations to establish AI governance frameworks that are adaptable to evolving technologies. She questions the notion of what is considered "ethically sound" and emphasizes the importance of understanding the organizational culture and the people using AI tools. The discussion reveals that many employees do not utilize AI tools effectively, leading to gaps in implementation and understanding. This sets the stage for a deeper exploration of the responsibilities that organizations must take on as they integrate AI into their operations.

Brad Gross addresses the legal implications of AI, particularly concerning privacy and intellectual property. He stresses that while MSPs can delegate tasks to AI, they cannot delegate responsibility. This means that organizations must maintain a human element in their AI strategies to mitigate risks. The conversation also touches on the current lack of comprehensive laws governing AI in the U.S., with a focus on the need for transparency and disclosure regarding data usage in AI systems.

The episode concludes with a discussion on the importance of accountability within organizations. Both experts agree that having a designated individual or team responsible for AI governance is crucial for success. They emphasize that MSPs should manage client expectations by clarifying the shared responsibilities in AI compliance. This collaborative approach is essential for navigating the complexities of AI integration and ensuring that organizations can leverage technology effectively while adhering to legal and ethical standards.

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A federal judge has ruled that Google acted illegally to maintain a monopoly in online advertising technology, which could lead to significant changes within the company. The ruling, made by Judge Leone Branchima of the U.S. District Court for the Eastern District of Virginia, found that Google unlawfully built dominance in the ad tech market, impacting tools used by publishers and the software facilitating advertising transactions. This decision is part of a broader regulatory effort to rein in the power of major tech companies, with the Justice Department also targeting Apple and Amazon for similar practices. Google, which holds an 87% market share in ad selling technology, plans to appeal the ruling, asserting that its ad tools are beneficial for publishers.

The implications of this ruling extend beyond Google itself, as it directly affects the marketing and customer acquisition strategies of IT service providers (MSPs) that rely on Google's advertising infrastructure. The court's decision could trigger a lengthy appeals process, and any operational changes may take years to implement. However, the ruling marks a significant moment for Google, indicating that its business practices may soon face substantial scrutiny and potential restructuring.

In addition to the Google ruling, the podcast discusses various new tools and technologies aimed at enhancing cybersecurity and compliance for MSPs. Notable announcements include Google’s launch of a new security platform called Google Unified Security, which integrates various security features into a single solution, and HPE Aruba Networking Central's expanded cloud features for managed service providers. These developments highlight the increasing focus on integrated AI-enhanced and compliance-ready security solutions, emphasizing the need for MSPs to align these tools with real client needs rather than simply adopting them as product features.

The episode also explores Apple's innovative approach to artificial intelligence, which prioritizes user privacy by utilizing synthetic datasets for training AI models. This method allows Apple to refine its AI outputs while keeping user data on the device, aligning with privacy regulations. The podcast concludes by addressing the evolving landscape of IT service delivery, urging providers to reconsider outdated technologies and prepare for the integration of AI in their operations, while also emphasizing the importance of security and compliance in this transition.

Four things to know today

00:00 Google Loses in Court— And That Could Matter for How MSPs Market Themselves

03:39 AI, Compliance, and a Lot of New Toys—But Are These the Tools Your Clients Actually Need?

06:34 Can Privacy-First AI Win? Apple’s New Approach Dares to Be Different

08:23 Old Tech Out, Smart AI In: What MSPs Need to Rethink Before It’s Too Late

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The U.S. government has renewed funding for the Common Vulnerabilities and Exposures (CVE) Program, a critical database for tracking cybersecurity flaws, just hours before its funding was set to expire. Established 25 years ago, the CVE program assigns unique identifiers to security vulnerabilities, facilitating consistent communication across the cybersecurity landscape. The renewal of funding comes amid concerns that without it, new vulnerabilities could go untracked, posing risks to national security and critical infrastructure. In response to the funding uncertainty, two initiatives emerged: the CVE Foundation, a nonprofit aimed at ensuring the program's independence, and the Global CVE Allocation System, a decentralized platform introduced by the European Union.

In addition to the CVE funding situation, Oregon Senator Ron Wyden has blocked the nomination of Sean Planky to lead the Cybersecurity and Infrastructure Security Agency (CISA) due to the agency's refusal to release a crucial unclassified report from 2022. This report details security issues within U.S. telecommunications companies, which Wyden claims represent a multi-year cover-up of negligent cybersecurity practices. The senator argues that the public deserves access to this information, especially in light of recent cyber threats, including the SALT typhoon hack that compromised sensitive communications.

The cybersecurity landscape is further complicated by significant layoffs at CISA, which could affect nearly 40% of its workforce, potentially weakening U.S. national security amid rising cyber threats. Recent cuts have already impacted critical personnel, including threat hunters, which could hinder the agency's ability to share vital threat intelligence with the private sector. Meanwhile, the Defense Digital Service at the Pentagon is facing a mass resignation of nearly all its staff, following pressure from the Department of Government Efficiency, which could effectively shut down the program designed to accelerate technology adoption during national security crises.

On the technology front, OpenAI has released new AI reasoning models, O3 and O4 Mini, but notably did not provide a safety report for the new GPT-4.1 model, raising concerns about transparency and accountability in AI development. The lack of a safety report is particularly alarming as AI systems become more integrated into client-facing tools. Additionally, SolarWinds Corporation has been acquired by Ternerva Capital, prompting managed service providers (MSPs) to reassess their dependencies on SolarWinds products and consider the implications for product roadmaps and support guarantees.

Four things to know today

00:00 From Panic to Pivot: U.S. Saves CVE Program at the Eleventh Hour

04:17 A Cybersecurity Meltdown: One Senator Blocks, Another Leader Quits, and a Whole Pentagon Team Walks Out

08:54 OpenAI Just Leveled Up AI Reasoning—But Left Out the Fine Print

11:45 SolarWinds Is Private Again: What That Means for MSPs Watching the Roadmap

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Peter Kujawa from Service Leadership discusses the findings of the 2025 Annual IT Solution Provider Compensation Report, focusing on the trends in wage inflation and employee retention within the managed service provider (MSP) sector. The report reveals that wage inflation peaked in 2022 but has since improved, largely due to the cooling off of the remote work trend and significant layoffs in the tech industry. This shift has led to a more stable job market, particularly in the U.S. and Australia, while Europe continues to experience stubborn wage inflation.

The conversation also delves into the current state of remote work, revealing that only 9.6% of employees are working fully remotely, while 42.6% are exclusively in the office. Kujawa notes that hybrid work models are likely to persist, especially among national and international MSPs. The data indicates that companies that maintained remote work longer faced more challenges when transitioning back to the office, highlighting the importance of flexibility in modern work environments.

Retention rates are another critical focus, with the report indicating that employees with one to three years of experience have a significantly higher turnover rate compared to those with eight years or more. Kujawa emphasizes the importance of structured onboarding and mentorship programs to improve retention, particularly for new employees and managers. He points out that investing in training and support for new managers is equally crucial, as their turnover rates are alarmingly high.

Finally, the discussion touches on the relationship between employee retention and profitability. The report shows that the best-performing MSPs tend to pay lower salaries but offer higher performance-based incentives, creating a more enjoyable work environment. This trend suggests that MSPs need to rethink their compensation structures, focusing on performance pay and aligning incentives with factors that employees can control, such as productivity and customer satisfaction, rather than broader financial metrics like EBITDA.

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