Business of Tech: Daily 10-Minute IT Services Insights

Host Dave Sobel engages in a lively discussion with seasoned technology journalist Jessica Davis and veteran industry writer Howard Cohen. The conversation kicks off with an exploration of the recent trend of CEO changes in the tech industry, particularly focusing on notable shifts at companies like Kaseya and ConnectWise. The trio delves into the implications of these leadership changes and speculates on the potential reasons behind them, including possible mergers and acquisitions, as well as the evolving landscape of managed services.

A significant portion of the episode is dedicated to the MSSP (Managed Security Service Provider) benchmark pricing report, which Jessica recently published. She highlights key findings, such as the opportunity for MSSPs to offer Virtual Chief Security Officer (vCSO) services, which are currently underutilized. The report reveals that while 100% of MSSPs provide security operations center services, only 57% offer backup and disaster recovery services, raising questions about the foundational services that should be included in security offerings. The discussion emphasizes the need for MSSPs to better define their services and explore pricing strategies to remain competitive in a rapidly evolving market.

The conversation shifts to the growing trend of mergers and acquisitions (M&A) in the managed services sector. Jessica notes that while the M&A market for MSPs surged in 2021 and 2022, it has since slowed due to rising interest rates and a limited supply of quality MSPs available for acquisition. This has led investment firms and organizations like Evergreen and The 20 to create their own events to build a pipeline of potential acquisitions. Howard adds that many MSPs are wary of selling to private equity firms due to concerns about employee retention and company culture, which has prompted alternative acquisition strategies focused on preserving the existing workforce.

As the episode wraps up, the panelists share their predictions for the first half of the year. Howard emphasizes the importance of professionalism in the industry, advocating for a shift from viewing managed services as a trade to recognizing it as a profession. Jessica highlights the increasing relevance of artificial intelligence (AI) in managed services, noting that MSPs are beginning to explore its applications for both customer use cases and internal operations. The discussion concludes with a call for the industry to embrace these changes and leverage new technologies to drive growth and innovation.

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The episode highlights the recent push by major companies like Microsoft, Google, and LinkedIn to integrate artificial intelligence (AI) tools into their services. Microsoft has relaunched its free AI chat service for businesses, now branded as Microsoft 365 Copilot Chat, which enhances workplace productivity through AI agents for a monthly fee. Google is also making strides by incorporating its Gemini AI experience into its Workspace plans, eliminating additional fees and reflecting a belief that AI will fundamentally transform work processes.

LinkedIn has introduced new AI tools aimed at improving the job-seeking experience for its users. The platform's JobsMatch tool will assist job seekers and recruiters alike, while a Recruitment AI agent will help small businesses manage hiring processes more effectively. This shift towards free tools marks a departure from LinkedIn's previous focus on premium offerings, as the company aims to streamline the application process amidst a competitive job market. Sobel notes the challenges faced by job seekers, with a significant number of applications submitted per minute, and highlights the increase in users activating the "Open to Work" feature.

The episode also touches on the potential ban of TikTok in the United States, which has led many users to migrate to the Chinese social media app RedNote. This shift has resulted in a notable increase in interest in learning Mandarin Chinese, as users adapt to the changing social media landscape. Sobel emphasizes the unintended consequences of such regulatory actions, suggesting that technology-savvy users are simply moving to another Chinese-run platform, which may complicate the regulatory landscape further.

In the latter part of the episode, Host Dave Sobel discusses the evolving perceptions of AI models, particularly focusing on the O1 model and its unique capabilities. He highlights the importance of human involvement in AI development, as research indicates that consumers prefer AI tools that showcase human expertise rather than those that appear overly human-like. The episode concludes with a call to action for listeners to reflect on their own use of AI technologies, the role of managed IT services, and the significance of human contributions to data quality, encouraging a proactive approach to leveraging these advancements in their businesses.

Three things to know today

00:00 Microsoft, Google, and LinkedIn Push AI Tools: What It Means for Your Workday  

04:44 What the Potential TikTok Ban Says About Government Regulation

06:13 Big Tech Ideas: AI Models, IT Services, and Why People Still Matter

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The FBI successfully hacked approximately 4,200 computers across the U.S. to eliminate the PlugX malware, which has been a tool for state-sponsored hackers in China since 2012. This operation, conducted in collaboration with French law enforcement, marks a proactive approach to combating cyber threats and underscores the importance of government intervention in mitigating advanced persistent threats.

Sobel also discusses the ongoing struggles of the LockBit cybercriminal organization following a major takedown last year. The U.S. Justice Department's efforts to dismantle LockBit's infrastructure have left the group reeling, with a significant reduction in their operational capacity. This case serves as a powerful example of how coordinated law enforcement actions can disrupt ransomware-as-a-service operations, providing IT providers with a narrative to educate clients on effective ransomware defense strategies.

The episode further explores the dual pressures faced by Chief Information Security Officers (CISOs) regarding the adoption of generative artificial intelligence (AI). While a majority of C-suite executives recognize the potential benefits of generative AI, they also express deep concerns about the associated security risks. The Cybersecurity and Infrastructure Security Agency (CISA) has introduced a new initiative aimed at addressing these vulnerabilities, emphasizing the need for effective risk management strategies as companies increasingly integrate AI technologies into their operations.

Finally, Sobel highlights the recent developments from Gradient MSP and Citricom, both of which are addressing critical pain points for managed service providers (MSPs). Gradient MSP has launched a Managed Billing Reconciliation Service to streamline billing processes, while Citricom's acquisition of Televi aims to enhance its cybersecurity offerings. These initiatives reflect the evolving landscape of MSP services, where operational efficiency and robust security measures are paramount for success in a competitive market.

Three things to know today

00:00 Good News Alert: FBI Crushes PlugX Malware, LockBit Stumbles, and Cybersecurity Gains Momentum

06:15 Billing, Breaches, and Bots: How MSPs and AI Security Are Tackling 2025’s Biggest Challenges

08:58 From Billing to Cybersecurity: Gradient MSP and Cytracom Address Critical MSP Pain Points

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Host Dave Sobel discusses the evolving landscape of artificial intelligence (AI) in business operations, highlighting a recent study by MIT and McKinsey. The study reveals a significant gap between high-performing companies and their peers, with top firms achieving faster returns on their AI investments. Key factors contributing to this success include strong executive support, a shift in partnerships towards established consultants, enhanced interdepartmental collaboration, and effective data management practices. Sobel emphasizes the importance of real-world use cases, such as Waystar's new AI solution aimed at streamlining the appeal process for denied healthcare claims, which addresses a substantial financial loss in the U.S. healthcare system.

The episode also delves into the challenges faced by customer service teams in adopting AI technologies. A survey from Freshworks indicates that while there is a strong desire to leverage AI for automating tasks, many customer service agents feel uncomfortable with its implementation. Sobel suggests that organizations should introduce AI as a collaborative tool to enhance job roles rather than replace them, and highlights the potential for IT providers to offer consulting services to help companies develop effective AI usage policies.

In the regulatory landscape, Sobel covers new export controls on advanced AI computing chips announced by the U.S. Department of Commerce, aimed at safeguarding national security. These regulations have drawn criticism from major chipmaker NVIDIA, which argues that they could hinder global innovation. Additionally, President Biden's executive order to accelerate the construction of AI data centers raises concerns about environmental impacts and energy consumption, as the demand for electricity from data centers is projected to rise significantly in the coming years.

Finally, the episode addresses Microsoft's recent announcements, including the forced installation of the new Outlook email client on Windows 10 devices and significant price increases for Microsoft 365 subscriptions in select Asian markets. Sobel notes that these changes could lead to user frustration and increased administrative burdens for IT providers. He concludes by urging listeners to prepare for potential client pushback and to consider the implications of these developments on their business strategies.

Three things to know today

00:00 AI in Action: From Faster ROI to Denied Claims and Chatbot Growing Pains

05:10 Regulations Everywhere: AI Chips, Data Centers, and Why IT Pros Should Brace Themselves

09:22 Microsoft’s Big Moves: Higher Prices, Forced Installs, and Passkeys—Love It or Leave It?

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The episode highlights a surge in small business digital transformation initiatives, with over 80% of surveyed leaders either adopting or considering AI technology. This trend is accompanied by a forecasted 40% increase in capital expenditures, reflecting a strong optimism among business leaders regarding future profits and sales. The episode also notes a recovery in the global smartphone market, driven by consumer demand for ultra-premium devices, and a substantial rise in data center spending, primarily fueled by hyperscalers and enterprise investments.

The podcast delves into the job market, reporting that the U.S. added 256,000 jobs in December 2024, marking the largest increase since March. Unemployment rates fell to 4.1%, with wages rising by 3.9% year-over-year. CompTIA's report indicates a growth of 7,000 tech jobs in December, despite losses in PC and semiconductor manufacturing. The demand for roles in software development, IT project management, and cybersecurity remains robust, with nearly half of job postings not requiring a four-year degree, suggesting increased accessibility in tech careers.

In a significant industry shift, the Computing Technology Industry Association has rebranded to the Global Technology Industry Association (GTIA), focusing on serving the IT channel. This change follows the sale of CompTIA's training and certification business, which will now operate separately. The GTIA aims to maintain affordable membership dues while expanding charitable initiatives in technology. Meanwhile, Kaseya's CEO Fred Voccola transitions to vice chairman, leaving behind a legacy of growth as the company seeks a new leader to navigate its future.

The episode also covers recent acquisitions, including WatchGuard Technologies' purchase of ActZero, a threat analysis startup, and 1Password's acquisition of Trellica, a provider of SaaS access management tools. These moves reflect a broader trend of platform expansion within the tech industry. 

Four things to know today

00:00 Big Wins for Tech: AI Booms, Jobs Climb, and Small Businesses Bet Big on Transformation

05:32 From CompTIA to GTIA: What the Rebrand Means for the IT Channel’s Future

06:36 Fred Voccola Passes the Torch at Kaseya—What’s Next for the $1.5B Powerhouse?

07:56 WatchGuard and 1Password Make Big Moves—Platform Expansion, Security, and SaaS Simplified

Appearance on IT Business Podcast https://youtu.be/FCDmm2p_noc?si=WVcUxjLv71vGwjpb

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The rapid advancement of artificial intelligence and automation is reshaping the future of IT. This episode explores how managed service providers (MSPs) can leverage these powerful technologies to optimize their operations and deliver exceptional value to their clients.

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In this episode of the Business of Tech Lounge, host Dave Sobel is joined by AI news writer Esther Shittu and seasoned journalist TC Doyle to discuss the current landscape of artificial intelligence adoption, upcoming regulations, and the implications of data center expansion. They explore how these factors impact IT services and strategies for guiding customers in a rapidly evolving tech environment. The episode also features audience questions, making it an interactive discussion on the future of AI and its integration into business practices.

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Key highlights from CES 2025, focusing on market predictions and the impact of potential tariffs on the tech industry. The Consumer Technology Association forecasts a 3.2% growth in the U.S. tech market, reaching $537 billion, contingent on avoiding a trade war under President-elect Donald Trump. The episode emphasizes the growing familiarity and usage of generative artificial intelligence (AI) among U.S. adults, with significant market growth anticipated in AI retail and virtual try-on technologies. However, the looming threat of tariffs could drastically affect consumer spending on essential tech products, particularly smartphones and laptops.

The podcast delves into the omnipresence of AI at CES, highlighting major announcements from companies like Intel, AMD, and HP. Innovations such as Intel's enterprise-focused 200V chip and AMD's Ryzen AI Max processors showcase the industry's push towards integrating AI capabilities into consumer devices. However, some products, like the ChefMaker 2 Air Fryer and the Spicer AI Spice Dispenser, raise questions about their practical utility, indicating a disconnect between AI marketing and real consumer needs. The episode also notes the strong presence of Chinese AI and robotics companies at the event, underscoring the global competition in the tech landscape.

In addition to hardware advancements, the episode discusses Microsoft's efforts to promote Windows 11, despite its slower adoption compared to Windows 10. With a significant portion of businesses and consumers expected to refresh their PCs by the end of 2025, Microsoft faces challenges in overcoming user hesitancy. The podcast warns against the trend of over-promising AI capabilities, urging listeners to maintain a skeptical perspective on emerging technologies and their practical applications in business.

Finally, the episode shifts focus to the evolving landscape for small and medium-sized businesses (SMBs), which are expected to leverage AI for innovation and improved decision-making. Analysts predict a shift towards industry-specific AI tools and automation solutions that promise measurable returns on investment. As SMBs increasingly adopt AI analytics, the importance of vendor risk management and security measures will grow. The episode concludes by encouraging listeners to reflect on their reliance on hardware and consider how emerging technology trends can drive business outcomes, emphasizing the need for adaptability in a rapidly changing tech environment.

Four things to know today

00:00 CES 2025: Tech Market Set to Grow, Unless Tariffs Bring the Party to a Halt

02:15 AI Chips Shine, But Are Air Fryers the Best We Can Do?

05:59 Nvidia, Intel, and AMD Play the Incremental Game: Chips, AI, and Small Wins

09:09 From Hardware Woes to AI Wins: The Changing Landscape of Tech and SMBs

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The federal government has reported a substantial increase in AI use cases, with over 1,700 applications identified across 37 agencies, more than doubling the previous year's total. These use cases span various categories, including health, mission-enabling tasks, and government services. The Department of Health and Human Services leads with 271 reported cases, showcasing the growing integration of AI in public services.

Host Dave Sobel highlights new innovations from companies like Synchro, AppDirect, and MacPaw, which are driving advancements in IT management. Synchro has launched a platform tailored for internal IT departments, enhancing operational efficiency through automation and AI. AppDirect's acquisition of FirstBase aims to streamline IT asset management, while MacPaw introduces CleanMyMac Business to simplify Mac maintenance for small and medium-sized businesses. These developments reflect a trend towards co-managed IT solutions, addressing the unique needs of corporate environments.

The episode also covers the launch of the Cyber Trust Mark, a government initiative designed to bolster consumer confidence in smart home devices by ensuring they meet rigorous cybersecurity standards. This mark, akin to the Energy Star label, will be mandatory for federal purchases by 2027 and is expected to influence how IT service providers recommend and support devices. Sobel emphasizes the potential challenges and opportunities this initiative presents for managed service providers (MSPs) as they adapt to new compliance requirements.

Finally, Sobel discusses Microsoft's strategic shift away from relying solely on OpenAI models for its Microsoft 365 Copilot system. The company is exploring in-house AI models and third-party options to enhance efficiency and reduce costs. This transition underscores a broader trend where customers prioritize the quality of solutions over the specific AI models used. Sobel concludes by inviting listeners to engage with the show and participate in the ongoing conversation about the future of managed services.

Four things to know today

00:00 From Chatbots to Body Scanners: The Government’s AI Toolkit is Growing Fast

03:42 2025 Systems Management Race: New Tools from Syncro, AppDirect, and MacPaw Drive Innovation

07:21 Cyber Trust Mark: The Government’s Energy Star for Smart Devices is Here

09:51 Who’s Driving Microsoft’s AI? Turns Out, It Might Not Be OpenAI for Long

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Host Dave Sobel discusses significant cybersecurity developments involving the U.S. Treasury Department and its recent breach linked to Chinese hackers. The breach, which was discovered on December 8, 2024, involved unauthorized access to unclassified documents within the Office of Foreign Assets Control, raising alarms about the potential exposure of sensitive information related to economic sanctions. The episode highlights the ongoing investigations and the U.S. government's response, including sanctions imposed on a Chinese cybersecurity firm involved in the Flax Typhoon cyber attacks that compromised numerous internet-connected devices globally.

Sobel also addresses the national security concerns surrounding TP-Link internet routers, which hold a dominant market share in the U.S. The Commerce, Defense, and Justice Departments are investigating the company due to its alleged ties to Chinese cyber threats and its failure to rectify security vulnerabilities. The episode emphasizes the importance of securing cloud systems, as CISA has mandated federal agencies to conduct security assessments in light of recent breaches attributed to foreign hackers. This directive aims to enhance the security posture of federal cloud environments and protect sensitive information.

The discussion shifts to the leadership transition at PIA, where CEO Jerwai Todd has stepped down after a year, passing the reins to an executive group. Sobel reflects on the challenges of dual CEO roles and the importance of operational stability during this transition. He notes Todd's contributions to the company, including the launch of an AI-driven help desk ticketing system, and emphasizes the need for a capable leader to navigate the competitive landscape of help desk automation.

Finally, the episode covers OpenAI's recent announcements regarding its new reasoning models, O1 and O3, which aim to enhance AI capabilities and approach artificial general intelligence. Sobel discusses the implications of OpenAI's shift towards a for-profit model and the potential impact on the development of AI technologies. He highlights the need for practical applications of these advancements and the importance of addressing concerns about the ethical implications of AI development. The episode concludes with a reminder of the significance of these developments in the broader context of technology and national security.

Three things to know today

00:00 From Treasury Hacks to Router Risks: The U.S. Grapples with China’s Cyber Onslaught

06:31 Dual CEO Role Dilemmas: Gerwai Todd Passes the Torch at Pia

08:51 AI Gets a Power Boost: OpenAI’s Big Plans, Bigger Models, and a Push for Profits

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