Business of Tech: Daily MSP News & IT Services Analysis

The Cybersecurity and Infrastructure Security Agency (CISA) is facing significant criticism from state and local officials who feel abandoned due to diminishing federal support for critical cybersecurity programs. Many officials are concerned about their increasing reliance on self-driven initiatives, especially after cuts to the Multi-State Information Sharing and Analysis Center, which has been a crucial source of cybersecurity intelligence for over two decades. A recent survey revealed that a substantial portion of state and local governments lack adequate funding for cybersecurity, with 22% allocating no funds and 42% operating with annual budgets of less than $100,000. This situation raises alarms about the potential for increased vulnerability to cyberattacks, particularly from nation-state actors.

In response to the evolving landscape of artificial intelligence, the National Institute of Standards and Technology (NIST) is developing new security guidance aimed at addressing the associated risks. This initiative will clarify how AI interacts with cybersecurity, focusing on securing AI systems, the adversarial use of AI, and leveraging AI to enhance cybersecurity measures. Additionally, a bipartisan bill known as the Validation and Evaluation for Trustworthy Artificial Intelligence Act has been reintroduced in the Senate, aiming to establish guidelines for the responsible development and testing of AI systems. House appropriators are also proposing a significant funding increase for NIST, reflecting a commitment to bolster cybersecurity and innovation.

The Federal Risk Management and Authorization Program (FedRAMP) has made strides in streamlining the approval process for government cloud services, achieving a significant reduction in wait times from over a year to approximately five weeks. This shift is part of a broader trend toward more efficient cloud authorization processes, with FedRAMP already approving more than twice as many services in fiscal year 2025 compared to the previous year. This development presents an opportunity for businesses to leverage FedRAMP-authorized stacks for government-related buyers and to build migration strategies accordingly.

OpenAI has recently updated its ChatGPT platform, introducing new models and third-party tool connectors while facing scrutiny over the performance and security of its latest model, GPT-5. Despite the introduction of various user-focused options, security assessments have revealed significant vulnerabilities in GPT-5, prompting concerns about its safety and reliability. As companies like ConnectWise implement new credit card surcharges and adjust their workforce in response to market demands, the overarching theme emphasizes the need for operational discipline and strategic planning in navigating the evolving technology landscape.

Four things to know today

00:00 Shrinking Cyber Budgets, Emerging AI Rules, and Streamlined FedRAMP Signal Shifts for IT Providers

06:43 From Security to SaaS Management, Vendors Roll Out Agentic Features for IT Service Providers

10:25 OpenAI Expands GPT-5 Options, Adds Connectors, but Faces Early Security Backlash

13:41 ConnectWise Adds Credit Card Surcharges, Trims Staff in Strategic Realignment

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About Business of Tech: The daily MSP news and analysis podcast for managed service providers and IT services leaders. Host Dave Sobel covers AI for MSPs, MSP pricing and profitability, MSP M&A and private equity, vendor partner programs, MSP cybersecurity and liability, and MSP operations — and answers the question every story raises: Why do we care? Produced by MSP Radio.

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Amazon Web Services, Microsoft Azure, and Google Cloud dominate the infrastructure-as-a-service market, controlling 71% of the market share. This concentration is driven by the rapid growth of artificial intelligence, with global cloud spending projected to exceed $700 billion in 2025. The economic impact of AI is significant, as evidenced by Microsoft reaching a $4 trillion valuation, largely due to investments in AI infrastructure. However, this boom has created challenges for recent computer science graduates, who are struggling to find jobs in a tech industry that is increasingly adopting AI tools while simultaneously laying off employees.

The job market for young tech workers is deteriorating, with unemployment rates for those aged 20 to 30 rising sharply. Economists warn of a potential "jobless recovery" for white-collar roles, as AI continues to replace routine jobs. The share of tech jobs peaked in late 2022 but has since declined, leaving graduates questioning the reliability of traditional pathways into tech careers. This shift highlights the need for companies to reassess their hiring practices and adapt to the changing landscape influenced by AI.

In a concerning development, researchers have identified vulnerabilities in Google's Gemini AI Assistant that could allow attackers to hijack smart devices through manipulated calendar invites. These vulnerabilities pose significant risks as AI becomes more integrated into everyday applications. Although Google has addressed these issues, the potential for exploitation raises alarms about the security of AI systems and the importance of implementing strict controls and user training to mitigate risks.

The recent launch of GPT-5 by OpenAI has sparked disappointment among users, leading to a petition for a return to the previous model. Many users feel that GPT-5 does not offer substantial improvements over its predecessor, resulting in a significant drop in OpenAI's perceived leadership in AI. This disconnect between advanced AI tools available at home and outdated technology in the workplace is causing dissatisfaction among employees, prompting organizations to evaluate their AI policies and capabilities to retain talent and enhance productivity.

Four things to know today

00:00 AI Boom Fuels Cloud Giants’ Growth While Squeezing Entry-Level Tech Jobs

06:33 Researchers Expose Gemini AI Flaw Allowing Smart Device Hijacking via Calendar Invites

08:04 GPT-5 Backlash Highlights AI Leadership Slip and Workplace Adoption Crisis

11:06 Intel CEO Goes from “Conflict Risk” to “Success” in Trump’s Eyes

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About Business of Tech: The daily MSP news and analysis podcast for managed service providers and IT services leaders. Host Dave Sobel covers AI for MSPs, MSP pricing and profitability, MSP M&A and private equity, vendor partner programs, MSP cybersecurity and liability, and MSP operations — and answers the question every story raises: Why do we care? Produced by MSP Radio.

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OpenAI has launched its latest AI model, GPT-5, which boasts significant advancements over its predecessor, GPT-4.0. CEO Sam Altman likens the impact of GPT-5 to the revolutionary introduction of the first iPhone with a retina display. The new model features enhanced capabilities, including dynamic reasoning, a larger context window, and the ability to switch between standard and reasoning modes for complex queries. Despite these improvements, user feedback has been mixed, with many expressing dissatisfaction and a preference for the more personable GPT-4.0, leading OpenAI to reintroduce the older model for users who desire it.

In addition to the advancements in AI, the podcast discusses the political turmoil surrounding Intel Corporation's CEO, Lip-Bu Tan. President Donald Trump has called for Tan's resignation due to his connections with Chinese technology firms, raising concerns about national security. Tan, who has only been in the role for five months, faces scrutiny as Intel deals with significant layoffs and strategic project cuts. The situation highlights the growing intersection of politics and business, particularly in the tech industry, where vendor stability is increasingly influenced by political factors.

The episode also covers N-able Inc., which reported a 9% year-over-year revenue growth, prompting the company to raise its full-year guidance. N-able is shifting its customer contracts from month-to-month to annual agreements, aiming to enhance profitability and stability. The company has also released a report indicating a dramatic increase in cyberattacks targeting small and medium-sized businesses, reflecting a shift in the perception of cybersecurity risks among these organizations. This highlights the urgent need for robust cybersecurity measures in an evolving threat landscape.

Lastly, the podcast addresses the operational challenges faced by managed service providers (MSPs) due to tool overload. A recent study reveals that many MSPs struggle with integrating multiple security tools, leading to alert fatigue and inefficiencies. The findings suggest that a unified cloud security platform could significantly improve data protection and response times. As the industry evolves, the need for streamlined solutions becomes increasingly critical for MSPs to effectively manage their clients' cybersecurity needs.

Three things to know today

00:00 GPT-5 Launches With Bigger Context, Smarter Routing, and Mixed Reviews From Users

07:32 Intel CEO Faces Presidential Resignation Demand Amid China Ties and Massive Layoffs

09:54 N-able Delivers 9% Growth, Pushes Long-Term Contracts Amid Rising SMB Cyberattacks

This is the Business of Tech.   

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About Business of Tech: The daily MSP news and analysis podcast for managed service providers and IT services leaders. Host Dave Sobel covers AI for MSPs, MSP pricing and profitability, MSP M&A and private equity, vendor partner programs, MSP cybersecurity and liability, and MSP operations — and answers the question every story raises: Why do we care? Produced by MSP Radio.

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Noelle Russell, CEO of the AI Institute, discusses the metaphor of the "baby tiger" to illustrate the potential dangers of unchecked AI development. She explains that while AI models may seem cute and harmless at first, they can grow into powerful and unpredictable entities if not properly managed. Russell emphasizes the importance of asking critical questions about AI's future impact, such as its size, data requirements, and ethical considerations, before it reaches widespread adoption. This proactive approach is essential for organizations to ensure responsible AI usage.

Russell highlights the shared responsibility of organizations when leveraging AI models created by others. She introduces the AI Safety System framework developed by Microsoft, which outlines the levels of accountability that exist from the human-AI experience to infrastructure. Business leaders must define how AI will interact with humans and ensure that employees understand how to effectively prompt and manage these models. This shift in accountability places the onus on business users to articulate their needs clearly, rather than relying solely on technical teams.

The conversation also touches on the financial implications of AI development, particularly for smaller businesses. Russell argues that while large companies may have the luxury of investing heavily in AI, smaller organizations must find ways to implement AI solutions with minimal upfront costs. She suggests conducting AI impact assessments to identify areas where AI can reduce friction and improve efficiency, ultimately leading to revenue generation without significant financial risk.

Finally, Russell anticipates trends in AI over the next six months, particularly the emergence of agentic organizations where AI systems support decision-makers. This approach focuses on enhancing human capabilities rather than merely automating tasks. As businesses begin to integrate AI more deeply into their operations, the need for effective leadership and a clear understanding of AI's potential will be crucial for success in this evolving landscape.

About Business of Tech: The daily MSP news and analysis podcast for managed service providers and IT services leaders. Host Dave Sobel covers AI for MSPs, MSP pricing and profitability, MSP M&A and private equity, vendor partner programs, MSP cybersecurity and liability, and MSP operations — and answers the question every story raises: Why do we care? Produced by MSP Radio.

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Automation is reshaping workflows across various industries, from fast food to creative production, prompting a shift towards smaller, trust-based online communities. The discussion centers on the balance between efficiency and maintaining authentic human connections in the age of AI. Kate O'Neill, a tech humanist and founder of Kao Insights, emphasizes the importance of designing automation that empowers individuals rather than detracting from their experiences. The conversation explores how companies can foster meaningful connections while leveraging technology to streamline operations.

The podcast highlights the case of McDonald's, which has been experimenting with AI to enhance its operational efficiency. Despite initial setbacks with AI voice systems, McDonald's continues to innovate, focusing on edge computing and predictive analytics to improve customer experience. O'Neill points out that the key to successful automation lies in aligning business objectives with customer expectations, ensuring that technology enhances rather than replaces the human experience. This alignment is crucial for brands to maintain trust and credibility with their customers.

O'Neill discusses the significance of measuring meaning in business, suggesting that metrics like net promoter scores can serve as proxies for understanding customer satisfaction. She advocates for a comprehensive view of business models that incorporates meaningful measures at every stage. By doing so, organizations can better align their automation efforts with customer needs, ultimately leading to more impactful outcomes. The conversation underscores the necessity of integrating employee feedback into the process of defining purpose and meaning within organizations.

As trust in digital platforms declines, O'Neill stresses the importance of shared values between brands and consumers. Companies must take on a governance role, operating from a place of responsibility and authenticity. By fostering trust through alignment with community values, businesses can create a more sustainable and meaningful relationship with their customers. The episode concludes with a call for organizations to articulate their purpose clearly, enabling employees to make decisions that resonate with both customer and employee experiences.

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About Business of Tech: The daily MSP news and analysis podcast for managed service providers and IT services leaders. Host Dave Sobel covers AI for MSPs, MSP pricing and profitability, MSP M&A and private equity, vendor partner programs, MSP cybersecurity and liability, and MSP operations — and answers the question every story raises: Why do we care? Produced by MSP Radio.

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Nett Lynch, a cybersecurity leader and strategic VCIO advisor, discusses the importance of translating complex security frameworks into actionable business outcomes. She emphasizes that clients are primarily concerned with their business goals and overcoming obstacles rather than the technical details of security frameworks. To effectively communicate the value of security investments, it is crucial to understand the client's business operations, including financial flows and growth aspirations. By framing security solutions in terms of efficiency and reduced friction, Lynch argues that IT professionals can better engage clients and demonstrate the tangible benefits of security measures.

Lynch also addresses the challenge of risk management in cybersecurity, noting that security experts can only reduce risk rather than eliminate it entirely. She highlights the necessity of having conversations with senior leadership to assess risk tolerance and make informed decisions about security investments. By conducting thorough assessments and breaking down security measures into manageable steps, IT providers can guide clients in making decisions that align with their risk appetite and business objectives.

The discussion further explores the shared responsibility model in cybersecurity, where both service providers and clients have roles to play in managing security risks. Lynch points out that while vendors are responsible for the tools they provide, the ultimate responsibility for risk management lies with the client. This partnership approach is essential for effective cybersecurity, as it requires active participation from both parties to address vulnerabilities and implement necessary measures.

Finally, Lynch shares her insights on the future of vCISO services, cautioning against the potential commercialization of the role, which could undermine its advisory nature. She advocates for professionalization within the industry to ensure that those claiming to be cybersecurity experts possess the necessary skills and knowledge. As AI technology continues to evolve, Lynch expresses a mix of excitement and caution, recognizing its potential impact on the industry while remaining aware of the risks associated with its adoption.

About Business of Tech: The daily MSP news and analysis podcast for managed service providers and IT services leaders. Host Dave Sobel covers AI for MSPs, MSP pricing and profitability, MSP M&A and private equity, vendor partner programs, MSP cybersecurity and liability, and MSP operations — and answers the question every story raises: Why do we care? Produced by MSP Radio.

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Two sophisticated ransomware groups, Akira and Lynx, are increasingly targeting managed service providers (MSPs) and small businesses by exploiting stolen credentials and vulnerabilities. Together, they have compromised over 365 organizations, with Akira targeting major firms like Hitachi Vantara and Lynx focusing on critical infrastructure, including a CBS affiliate in Chattanooga, Tennessee. Both groups utilize double extortion tactics, combining file encryption with data theft to pressure victims into paying ransoms. This shift in tactics highlights the evolving threat landscape for MSPs and small businesses.

In response to the growing cybersecurity threats, the U.S. Cybersecurity and Infrastructure Security Agency has released Thorium, an open-source platform designed for malware and forensic analysis. Thorium can automate tasks and process over 10 million files per hour, empowering IT professionals without in-house malware analysis capabilities to conduct effective preliminary analyses. This tool aims to enhance cybersecurity operations and better manage risks associated with complex malware threats.

Additionally, SonicWall has issued a warning to its customers to disable SSL Virtual Private Network (VPN) services due to active ransomware attacks targeting its systems. Meanwhile, Google's AI-powered bug hunter, Big Sleep, has identified 20 security vulnerabilities in popular open-source software, raising concerns about the reliability of AI-generated bug reports. A newly discovered prompt injection vulnerability in Google's Gemini AI chatbot poses serious security risks, enabling attackers to craft convincing phishing campaigns without relying on links or attachments.

The podcast also discusses the alarming rise in cybersecurity incidents, particularly social engineering attacks, which have tripled in the first half of 2025. A report from Level Blue indicates that social engineering now accounts for 39% of initial access incidents, with fake CAPTCHA schemes rising dramatically. Furthermore, the report highlights the risks associated with unauthorized AI tool usage, revealing that 97% of organizations lack adequate access controls, exposing sensitive data to potential threats. This underscores the need for organizations to strengthen their defenses and educate users on emerging threats.

Four things to know today

00:00 Attackers Up Their Game: Ransomware Hits MSPs, SonicWall Vulnerable, and Google’s AI Found Exploitable

05:53 Social Engineering Surges as Shadow AI Breaches Drive Up Cyber Costs and Risk Exposure

08:35 Neglected Tech, Rising Risk: Email and Printers Still Expose Businesses to Modern Threats

11:04 From Ransomware to Retirements: Vendor Shifts Reveal Risks and Realignment in the IT Channel

This is the Business of Tech.   

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About Business of Tech: The daily MSP news and analysis podcast for managed service providers and IT services leaders. Host Dave Sobel covers AI for MSPs, MSP pricing and profitability, MSP M&A and private equity, vendor partner programs, MSP cybersecurity and liability, and MSP operations — and answers the question every story raises: Why do we care? Produced by MSP Radio.

MSP Radio is supported by our partners:

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Supporting the IT services community through insights, analysis, and transparency.

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Artificial intelligence agents are significantly transforming the landscape of software-as-a-service (SaaS) pricing, moving away from traditional per-seat licenses towards usage and outcome-based models. Gartner predicts that by 2030, 40% of enterprise spending on software will shift to these new pricing structures, prompting businesses to reassess how they perceive value in digital operations. As AI features become more prevalent in enterprise software, organizations must navigate potential risks such as data silos and vendor lock-in, emphasizing the need for transparent pricing and governance strategies.

The podcast discusses the growing concerns surrounding AI's impact on the workforce, with a survey revealing that 61% of white-collar workers fear job displacement within three years. Despite these fears, many workers report that AI has enhanced their creativity and productivity, suggesting that AI should be viewed as a tool for augmentation rather than replacement. This perspective can facilitate smoother adoption of AI technologies, positioning service providers as trusted change managers.

In the realm of security, Microsoft faces scrutiny over a critical vulnerability in its new NLWeb protocol, which could allow unauthorized access to sensitive files. Meanwhile, Cloudflare has accused the AI startup Perplexity of violating no-crawl directives by stealthily scraping content from websites, raising concerns about unauthorized data access. Additionally, Anthropic's research highlights how AI personalities can be influenced by training data, underscoring the importance of data governance in AI development.

The episode also touches on Delta Airlines' clarification regarding its AI-assisted dynamic pricing model, which aims to use aggregated data rather than individual customer information. In the fashion industry, the use of AI-generated models has sparked debate over authenticity and representation, as brands seek cost-effective solutions for content creation. Overall, the discussion emphasizes the need for service providers to balance AI's cost-saving potential with the importance of maintaining trust and authenticity in consumer-facing applications.

Four things to know today

00:00 AI Agents Drive SaaS Pricing Shift, Raise Vendor Lock-In Concerns, and Reshape Worker Attitudes

04:45 OpenAI Releases First Open-Weight Models in Six Years as AI Security and Ethics Face Fresh Challenges

09:50 Delta Defends AI Pricing as Non-Personalized, While Fashion Faces Backlash Over AI-Generated Models

12:47 Microsoft Ends Windows 11 SE, Debuts Edge AI Copilot, as SentinelOne Expands into Generative AI Security

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About Business of Tech: The daily MSP news and analysis podcast for managed service providers and IT services leaders. Host Dave Sobel covers AI for MSPs, MSP pricing and profitability, MSP M&A and private equity, vendor partner programs, MSP cybersecurity and liability, and MSP operations — and answers the question every story raises: Why do we care? Produced by MSP Radio.

MSP Radio is supported by our partners:

ABC Solutions · CometBackup · Firetail · HaloPSA · LogMeIn · Mailprotector · Pax8 · Rythmz · ScalePad · TimeZest · Transit AI

Supporting the IT services community through insights, analysis, and transparency.

Get exclusive access to investigative reports, vendor analysis, leadership briefings, and more.

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Small and medium-sized businesses (SMBs) are increasingly investing in artificial intelligence (AI), with a significant portion planning to allocate between $25,000 and $1 million towards technology this year. A recent GTIA survey revealed that 63% of SMBs believe AI will be the most impactful technology in the next two years, and 65% of executives view technology as crucial for achieving business goals. Despite economic uncertainties, 35% of these businesses intend to invest unexpected financial gains into cutting-edge technology, indicating a strong desire for innovation. Notably, many SMBs are purchasing technology directly from vendors, signaling a shift in the market dynamics.

The labor market for small businesses is showing signs of change, with a report indicating a decrease in unfilled job openings. While 33% of small business owners reported unfilled positions in July, down from 36% in June, the challenges of finding qualified workers persist. A net 14% of small business owners plan to hire new employees in the upcoming quarter, particularly in skilled trade sectors like construction and transportation. This commitment to growth amidst a tight labor market suggests that automation and AI solutions may become more appealing to SMBs as they seek to enhance efficiency.

Major tech companies are reporting strong earnings, with Microsoft leading the way. The company achieved a revenue of $76.4 billion for the fourth quarter of its fiscal year, driven by a 34% increase in Azure cloud services. Amazon and Google also reported significant revenue growth, particularly in their cloud services, with Amazon's AWS generating $30.9 billion. The competitive landscape is shifting, as Microsoft’s Bing is gaining market share from Google, highlighting the importance of AI integration in driving business success.

Concerns about the integrity of economic data are rising, particularly following the recent job report that showed the weakest job creation since 2010. The report's findings prompted political controversy, including the firing of the Bureau of Labor Statistics Commissioner by President Trump. Experts warn that declining survey response rates and limited resources threaten the accuracy of critical economic indicators. This situation raises alarms about the reliability of data used for economic forecasting, emphasizing the need for trustworthy metrics in navigating the current economic landscape.

Three things to know today

00:00 AI Demand, Tight Labor, and Vendor Direct Sales Redefine the SMB Technology Landscape

05:16 Microsoft Posts Record $76.4B Quarter, Azure Up 34%, Bing Gains Search Share from Google

10:10 Buyers Reject Multiyear SaaS Contracts Amid Rapid AI-Driven Product Changes

13:03 Weak Jobs Data Spurs Political Shake-Up as Trump Fires BLS Commissioner, Raising Trust Concerns

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About Business of Tech: The daily MSP news and analysis podcast for managed service providers and IT services leaders. Host Dave Sobel covers AI for MSPs, MSP pricing and profitability, MSP M&A and private equity, vendor partner programs, MSP cybersecurity and liability, and MSP operations — and answers the question every story raises: Why do we care? Produced by MSP Radio.

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Austin McChord, co-founder and chairman of Slide, discusses the launch of his new BCDR startup, which aims to serve managed service providers (MSPs) with a fresh approach. Drawing from his experience at Datto, McChord emphasizes the importance of maintaining a strong culture and alignment with MSPs, which he feels has eroded in recent years. He addresses comparisons between Slide and Datto, explaining that while there are similarities in vision, Slide is built on a completely different technological foundation, utilizing NVMe flash storage to enhance performance and user experience.

McChord expresses a commitment to ensuring Slide remains an independent company, learning from the challenges faced during Datto's journey, including its acquisition and the subsequent cultural shifts. He highlights the importance of setting clear values and operational controls to prevent a repeat of past experiences. The conversation delves into the lessons learned from building Datto, particularly regarding business operations and the unpredictability of public markets, which can lead to unwanted outcomes for company culture and employee satisfaction.

The discussion also touches on the impact of AI in the tech landscape, with McChord noting that while AI can enhance efficiency, it currently struggles with tasks that require deep expertise. He believes that AI's potential lies in automating mundane tasks and improving configurations, but warns against rushing to implement AI solutions that may not yet be fully developed. McChord emphasizes the need for MSPs to understand the limitations of AI and to focus on building strong relationships with new small businesses that are emerging in the tech space.

Finally, McChord shares his philanthropic endeavors, including transforming an abandoned power plant into a public park. He expresses excitement about projects that prioritize social returns over economic ones, and how these initiatives allow him to apply business principles to create positive change. His passion for building and creating, whether in business or philanthropy, drives his current pursuits and future aspirations.

About Business of Tech: The daily MSP news and analysis podcast for managed service providers and IT services leaders. Host Dave Sobel covers AI for MSPs, MSP pricing and profitability, MSP M&A and private equity, vendor partner programs, MSP cybersecurity and liability, and MSP operations — and answers the question every story raises: Why do we care? Produced by MSP Radio.

MSP Radio is supported by our partners:

ABC Solutions · CometBackup · Firetail · HaloPSA · LogMeIn · Mailprotector · Pax8 · Rythmz · ScalePad · TimeZest · Transit AI

Supporting the IT services community through insights, analysis, and transparency.

Get exclusive access to investigative reports, vendor analysis, leadership briefings, and more.

👉 https://businessof.tech/plus

Want the show on your favorite podcast app or prefer the written versions of each story?

📲 https://www.businessof.tech/subscribe

Looking for the links from today’s stories?

Every episode script — with full source links — is posted at:

🌐 https://www.businessof.tech

Pitch your story or appear on Business of Tech: Daily MSP News & IT Services Analysis

💬 https://www.podmatch.com/hostdetailpreview/businessoftech

LinkedIn: https://www.linkedin.com/company/28908079

YouTube: https://youtube.com/mspradio

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

Instagram: https://www.instagram.com/mspradio

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