Business of Tech: Daily 10-Minute IT Services Insights

ConnectWise has announced enhancements to its Ozzio platform, which now includes expanded third-party patching for over 7,000 applications, improvements to the professional services automation (PSA) user experience, and advanced robotic process automation (RPA) capabilities. These updates aim to address security vulnerabilities in widely exploited applications and streamline operations for managed service providers (MSPs). The new features are set to improve operational efficiency and security, with the expanded patching available immediately and RPA features expected to roll out in the coming months.In conjunction with these updates, ESET has integrated its ESET Protect platform with ConnectWise Ozzio, allowing for one-click deployment of security management tools. This integration is designed to enhance the efficiency of security tasks for MSPs, enabling them to meet legal and insurance requirements more effectively. Additionally, ConnectSecure has introduced AI-powered vulnerability management reports that prioritize risks based on business impact rather than just technical severity, further supporting MSPs in delivering proactive risk assessments.OpenAI has surpassed 1 million business customers, marking it as the fastest-growing business platform in history. A Wharton study indicates that 75% of enterprises using AI technologies report a positive return on investment. Meanwhile, Google has launched Gemini AI tools for stock traders and improved hurricane prediction capabilities through its DeepMind technology, showcasing the growing integration of AI across various sectors, including finance and weather forecasting.For MSPs and IT service leaders, these developments underscore the importance of integrating advanced security and AI capabilities into their service offerings. As the landscape shifts towards cyber resilience and AI-driven solutions, providers must adapt by leveraging these tools to enhance their operational efficiency and client services. The focus on measurable outcomes, such as trust and risk management, will be crucial for maintaining competitive advantage in an increasingly automated environment.  Four things to know today00:00 At IT Nation Connect, ConnectWise Focuses on Asio Enhancements While Ecosystem Partners Deliver the Bigger Innovation05:37 N-able Rebrands Its Future: Strong Earnings and AI-Fueled Pivot Toward Cyber Resilience08:31 From ChatGPT to Hurricanes: How AI’s Expansion Is Turning Tools Into Core Business Systems11:14 Trust, Transparency, and Transformation: How AI Acceleration Is Forcing Leaders to Rethink Human Metrics This is the Business of Tech.    Supported by:  https://mailprotector.com/mspradio/  💼 All Our SponsorsSupport the vendors who support the show:👉 https://businessof.tech/sponsors/ 🚀 Join Business of Tech PlusGet exclusive access to investigative reports, vendor analysis, leadership briefings, and more.👉 https://businessof.tech/plus 🎧 Subscribe to the Business of TechWant the show on your favorite podcast app or prefer the written versions of each story?📲 https://www.businessof.tech/subscribe 📰 Story Links & SourcesLooking for the links from today’s stories?Every episode script — with full source links — is posted at:🌐 https://www.businessof.tech 🎙 Want to Be a Guest?Pitch your story or appear on Business of Tech: Daily 10-Minute IT Services Insights:💬 https://www.podmatch.com/hostdetailpreview/businessoftech 🔗 Follow Business of Tech LinkedIn: https://www.linkedin.com/company/28908079YouTube: https://youtube.com/mspradioBluesky: https://bsky.app/profile/businessof.techInstagram: https://www.instagram.com/mspradioTikTok: https://www.tiktok.com/@businessoftechFacebook: https://www.facebook.com/mspradionews Hosted by Simplecast, an AdsWizz company. See pcm.adswizz.com for information about our collection and use of personal data for advertising.

Amazon has initiated legal action against Perplexity AI, alleging that the startup's AI browser improperly accesses Amazon customer accounts by mimicking human browsing behavior. The lawsuit, filed in the U.S. District Court for the Northern District of California, raises concerns about security risks associated with Perplexity's Comet browser. Amazon claims that this practice undermines customer experience and its curated shopping services. In response, Perplexity asserts that Amazon is leveraging its market dominance to stifle competition, emphasizing that user credentials are stored locally and not on their servers.In a related development, Microsoft researchers have introduced a new simulation environment called the Magentic Marketplace, aimed at evaluating the performance of AI agents. This initiative, developed in collaboration with Arizona State University, highlights vulnerabilities in current agentic models, particularly their ability to operate unsupervised and respond to complex scenarios. Initial experiments revealed that as customer agents faced increased options, their efficiency declined due to information overload, raising concerns about the practical application of AI agents in real-world settings.Additional updates include Netrix Global's acquisition of Ricoh's U.S. IT services business, marking Ricoh's exit from the managed services sector. This acquisition is expected to enhance Netrix's offerings and geographic reach, particularly in the Northeast and Southeast regions of the United States. Furthermore, several product announcements aimed at improving operational efficiency for MSPs were made, including Movila's Project Hub for project management and Huntress's support for Cybersecurity Maturity Model Certification compliance.For MSPs and IT service leaders, these developments underscore the importance of governance and compliance in the deployment of AI technologies. The legal dispute between Amazon and Perplexity highlights the need for clarity around user data handling and the implications of automated systems. Additionally, the acquisition of Ricoh's IT services by Netrix serves as a reminder of the challenges in the managed services market, emphasizing the necessity for specialization and operational efficiency. Vendors are increasingly recognizing the need to provide practical support tools that enhance operational capabilities rather than merely offering security solutions.Four things to know today00:00 Amazon Says Perplexity’s AI Went Too Far — and Microsoft Just Proved Why Agents Still Struggle04:26 Ricoh’s Out, Netrix Is In — Another Big Shift in the MSP Landscape06:18 Three New AI Tools Drop for MSPs—But Only One Might Actually Matter09:20 Project Templates, Compliance Docs, and Pay-as-You-Go: Vendors Focus on MSP Basics This is the Business of Tech.       💼 All Our SponsorsSupport the vendors who support the show:👉 https://businessof.tech/sponsors/ 🚀 Join Business of Tech PlusGet exclusive access to investigative reports, vendor analysis, leadership briefings, and more.👉 https://businessof.tech/plus 🎧 Subscribe to the Business of TechWant the show on your favorite podcast app or prefer the written versions of each story?📲 https://www.businessof.tech/subscribe 📰 Story Links & SourcesLooking for the links from today’s stories?Every episode script — with full source links — is posted at:🌐 https://www.businessof.tech 🎙 Want to Be a Guest?Pitch your story or appear on Business of Tech: Daily 10-Minute IT Services Insights:💬 https://www.podmatch.com/hostdetailpreview/businessoftech 🔗 Follow Business of Tech LinkedIn: https://www.linkedin.com/company/28908079YouTube: https://youtube.com/mspradioBluesky: https://bsky.app/profile/businessof.techInstagram: https://www.instagram.com/mspradioTikTok: https://www.tiktok.com/@businessoftechFacebook: https://www.facebook.com/mspradionews Hosted by Simplecast, an AdsWizz company. See pcm.adswizz.com for information about our collection and use of personal data for advertising.

The Pentagon is preparing to enforce the Cybersecurity Maturity Model Certification (CMMC) requirements for small businesses, with compliance becoming mandatory in contracts starting November 10, 2025. Nearly 500 organizations have already achieved Level 2 certification, and the Defense Department is actively surveying small businesses to assess their readiness for these new standards. This initiative is expected to extend beyond Department of Defense contractors, potentially influencing other federal agencies and international partners to adopt similar cybersecurity measures.Recent reports highlight a concerning rise in cybersecurity threats, particularly in mobile attacks and ransomware incidents. According to the Verizon 2025 Mobile Security Index, 85% of organizations have reported increased mobile attacks, with 38% identifying AI-powered ransomware as a growing concern. Despite the widespread use of generative AI tools, only 17% of organizations have implemented specific security measures to counter AI-assisted attacks. Additionally, a report from Sophos indicates that 58% of retailers impacted by ransomware opted to pay the ransom, with the median demand doubling to $2 million.The episode also discusses the withdrawal of a controversial MIT Sloan paper that claimed 80% of ransomware attacks involved artificial intelligence, following criticism from cybersecurity experts. This incident underscores the issue of "AI-washing" in the cybersecurity sector, where unverified claims are made to attract attention. MSPs are advised to scrutinize such claims and focus on proven security practices rather than hype-driven narratives.For Managed Service Providers and IT decision-makers, the key takeaway is the importance of compliance and foundational cybersecurity practices. As the CMMC requirements loom, MSPs should consider developing readiness packages and tightening documentation processes. Additionally, the ongoing rise in lawsuits related to the Americans with Disabilities Act (ADA) highlights the need for businesses to prioritize compliance as a critical aspect of risk management, reinforcing that effective cybersecurity and legal compliance are essential for sustainable operations. Four things to know today00:00 The Cyber Threats Are Real — But It’s Not AI Geniuses, It’s the Same Old Tricks Getting Smarter05:05 MIT’s Big AI-Ransomware Claim Falls Apart — Turns Out the Data Didn’t Hold Up07:09 The Pentagon’s Rolling Out CMMC — and Small Businesses Are Feeling the Pressure on All Fronts10:27 Everyone Wants to Be Your Platform — New MSP Tools from Cisco, Barracuda, and WatchGuard Show WhyThis is the Business of Tech.     Supported by:  https://saasalerts.com/mspradio/   💼 All Our SponsorsSupport the vendors who support the show:👉 https://businessof.tech/sponsors/ 🚀 Join Business of Tech PlusGet exclusive access to investigative reports, vendor analysis, leadership briefings, and more.👉 https://businessof.tech/plus 🎧 Subscribe to the Business of TechWant the show on your favorite podcast app or prefer the written versions of each story?📲 https://www.businessof.tech/subscribe 📰 Story Links & SourcesLooking for the links from today’s stories?Every episode script — with full source links — is posted at:🌐 https://www.businessof.tech 🎙 Want to Be a Guest?Pitch your story or appear on Business of Tech: Daily 10-Minute IT Services Insights:💬 https://www.podmatch.com/hostdetailpreview/businessoftech 🔗 Follow Business of Tech LinkedIn: https://www.linkedin.com/company/28908079YouTube: https://youtube.com/mspradioBluesky: https://bsky.app/profile/businessof.techInstagram: https://www.instagram.com/mspradioTikTok: https://www.tiktok.com/@businessoftechFacebook: https://www.facebook.com/mspradionews Hosted by Simplecast, an AdsWizz company. See pcm.adswizz.com for information about our collection and use of personal data for advertising.

The managed service provider (MSP) market has surpassed $305 billion and is projected to reach $571 billion by 2033, indicating a strong trend toward consolidation within the sector. In the second quarter of 2025 alone, there were 92 announced mergers and acquisitions, as companies aim to enhance their cybersecurity capabilities and automate operations. Key areas of focus for leading MSPs include operations, talent, security, automation, and compliance, which are essential for navigating the current landscape. Notable transactions include Comcast's acquisition of Nitell and Telus Digital's acquisition of Garrent.Research indicates that while artificial intelligence (AI) investments are expected to rise, particularly in telecommunications for predictive maintenance and network optimization, many AI projects struggle to scale effectively. A recent study from the Remote Labor Index found that top AI models completed less than 3% of assigned freelance tasks, highlighting a gap between expectations and actual performance. Additionally, a report from Fortinet revealed that 87% of cybersecurity professionals believe AI will enhance their roles, yet a significant skills gap persists, with over 4.7 million positions unfilled globally.Further developments include Intuit's launch of its AI-driven system, Intuit Intelligence, designed to streamline decision-making for small business owners, and Adobe's introduction of Firefly Foundry, which offers customized generative AI models for branding. Service Leadership has also released a new benchmarking tool aimed at smaller IT solution providers, enhancing their financial reporting capabilities. These initiatives reflect a growing trend of embedding AI into everyday business tools, which MSPs must navigate.For MSPs and IT service leaders, the implications are clear: the market is maturing rapidly, and providers must adapt by tightening operations, investing in automation, and prioritizing compliance. As AI becomes increasingly integrated into existing systems, MSPs should conduct audits to identify where AI is already active and establish governance frameworks to manage these technologies effectively. The focus should be on leveraging AI to enhance service delivery while ensuring that human oversight remains a critical component of technology management.Three things to know today00:00 From “Digital Transformation” to AI Operations: The MSP and IoT Boom Signals a More Mature IT Services Era05:28 AI’s Promise Meets Its Limits: Reports Expose Gaps in Skills, Safety, and Real-World Capability09:22 From Finance to Branding, AI Is Already Inside Your Clients’ SaaS Stack — Whether You Put It There or Not This is the Business of Tech.    Supported by:  https://try.auvik.com/dave-switchhttps://cometbackup.com/?utm_source=mspradio&utm_medium=podcast&utm_campaign=sponsorship  💼 All Our SponsorsSupport the vendors who support the show:👉 https://businessof.tech/sponsors/ 🚀 Join Business of Tech PlusGet exclusive access to investigative reports, vendor analysis, leadership briefings, and more.👉 https://businessof.tech/plus 🎧 Subscribe to the Business of TechWant the show on your favorite podcast app or prefer the written versions of each story?📲 https://www.businessof.tech/subscribe 📰 Story Links & SourcesLooking for the links from today’s stories?Every episode script — with full source links — is posted at:🌐 https://www.businessof.tech 🎙 Want to Be a Guest?Pitch your story or appear on Business of Tech: Daily 10-Minute IT Services Insights:💬 https://www.podmatch.com/hostdetailpreview/businessoftech 🔗 Follow Business of Tech LinkedIn: https://www.linkedin.com/company/28908079YouTube: https://youtube.com/mspradioBluesky: https://bsky.app/profile/businessof.techInstagram: https://www.instagram.com/mspradioTikTok: https://www.tiktok.com/@businessoftechFacebook: https://www.facebook.com/mspradionews Hosted by Simplecast, an AdsWizz company. See pcm.adswizz.com for information about our collection and use of personal data for advertising.

AI infrastructure spending is rapidly increasing, with major technology companies such as Google, Microsoft, and Amazon projected to invest over $300 billion by the end of 2025. This surge is primarily driven by the demand for data centers and GPU capacity to support artificial intelligence initiatives. While the Federal Reserve indicates that current investments differ from the dot-com boom due to stronger earnings among leading firms, analysts caution that excessive debt-fueled expansion could pose risks if AI does not deliver the anticipated returns. The insurance sector is particularly optimistic, with 67% of CEOs expecting returns on AI investments within three years, a significant increase from 20% the previous year.Alphabet reported a quarterly revenue of $102.35 billion, exceeding expectations, with a notable 34% growth in cloud revenue. Amazon's cloud division, AWS, also showed resilience, generating $33 billion in net sales despite a global outage. Microsoft reported $49 billion in cloud revenue, with Azure experiencing a 40% year-over-year growth. However, Microsoft faced challenges with capacity shortages, which could limit revenue potential. Additionally, OpenAI reported a net loss of $11.5 billion, impacting Microsoft's financials due to its significant investment in the AI company.In the small business sector, sales transactions increased by 8% in the third quarter of 2025, although owner confidence has declined due to inflation and rising operational costs. Many small business owners are motivated to sell before conditions worsen, with a notable number of buyers identified as corporate refugees seeking stability in essential service sectors. This trend presents an opportunity for IT providers to offer tailored technology solutions to these new business owners, who may lack expertise in setting up necessary systems.For Managed Service Providers (MSPs) and IT service leaders, the current environment presents both challenges and opportunities. As AI drives infrastructure upgrades, providers must help clients navigate the complexities of AI investments, ensuring they understand when AI initiatives are financially viable versus when they may be overhyped. Additionally, the increase in small business sales indicates a demand for reliable technology setups, providing MSPs with a chance to offer essential services that facilitate smoother transitions for new business owners. Three things to know today00:00 AI Spending Soars Past $300 Billion as Cloud Titans Post Record Earnings and Mounting Risks06:15 AI Gold Rush: Big Tech’s Billion-Dollar Bet Fuels Cloud Expansion, CEO Optimism, and Debt Warnings10:26 Small Business Sales Surge as Inflation Saps Confidence and Corporate Refugees Step In This is the Business of Tech.    Supported by:  https://scalepad.com/dave/https://getflexpoint.com/msp-radio/  💼 All Our SponsorsSupport the vendors who support the show:👉 https://businessof.tech/sponsors/ 🚀 Join Business of Tech PlusGet exclusive access to investigative reports, vendor analysis, leadership briefings, and more.👉 https://businessof.tech/plus 🎧 Subscribe to the Business of TechWant the show on your favorite podcast app or prefer the written versions of each story?📲 https://www.businessof.tech/subscribe 📰 Story Links & SourcesLooking for the links from today’s stories?Every episode script — with full source links — is posted at:🌐 https://www.businessof.tech 🎙 Want to Be a Guest?Pitch your story or appear on Business of Tech: Daily 10-Minute IT Services Insights:💬 https://www.podmatch.com/hostdetailpreview/businessoftech 🔗 Follow Business of Tech LinkedIn: https://www.linkedin.com/company/28908079YouTube: https://youtube.com/mspradioBluesky: https://bsky.app/profile/businessof.techInstagram: https://www.instagram.com/mspradioTikTok: https://www.tiktok.com/@businessoftechFacebook: https://www.facebook.com/mspradionews Hosted by Simplecast, an AdsWizz company. See pcm.adswizz.com for information about our collection and use of personal data for advertising.

Andrew Jordan, a CPA specializing in IT services and managed service providers (MSPs), discusses the implications of recent tax code changes for MSPs. The new legislation, referred to as the "big, beautiful bill," has introduced significant modifications, including the reinstatement of 100% bonus depreciation. This allows MSPs to write off the full cost of new servers and equipment in the year they are put into service, which can greatly benefit their financial planning and tax strategies.Jordan also highlights the expansion of Qualified Small Business Stock (QSBS) provisions, which can enable certain small businesses to sell their stock without incurring taxes. This is particularly relevant for MSPs considering an exit strategy, as it can mean retaining more of the sale proceeds. However, to qualify, businesses must be structured as C corporations, which is less common among MSPs that often operate as S corporations. Jordan emphasizes the importance of planning and understanding the implications of this structure for future sales.Additionally, the conversation touches on the Research and Development (R&D) tax credits, which are broader than many realize. Activities such as developing new automation scripts or configuring server setups can qualify for these credits, potentially leading to significant tax savings. Jordan advises MSPs to track their labor costs and time spent on R&D activities, as this can help determine eligibility for credits and refunds.Finally, Jordan addresses the potential changes to overtime deductions and the importance of aligning with a CPA who matches the business owner's risk tolerance. He encourages MSPs to stay informed about these evolving tax regulations and to consider how they can optimize their financial strategies in light of these changes. The discussion underscores the need for proactive financial planning as MSPs prepare for future growth and potential sales.  💼 All Our SponsorsSupport the vendors who support the show:👉 https://businessof.tech/sponsors/ 🚀 Join Business of Tech PlusGet exclusive access to investigative reports, vendor analysis, leadership briefings, and more.👉 https://businessof.tech/plus 🎧 Subscribe to the Business of TechWant the show on your favorite podcast app or prefer the written versions of each story?📲 https://www.businessof.tech/subscribe 📰 Story Links & SourcesLooking for the links from today’s stories?Every episode script — with full source links — is posted at:🌐 https://www.businessof.tech 🎙 Want to Be a Guest?Pitch your story or appear on Business of Tech: Daily 10-Minute IT Services Insights:💬 https://www.podmatch.com/hostdetailpreview/businessoftech 🔗 Follow Business of Tech LinkedIn: https://www.linkedin.com/company/28908079YouTube: https://youtube.com/mspradioBluesky: https://bsky.app/profile/businessof.techInstagram: https://www.instagram.com/mspradioTikTok: https://www.tiktok.com/@businessoftechFacebook: https://www.facebook.com/mspradionews Hosted by Simplecast, an AdsWizz company. See pcm.adswizz.com for information about our collection and use of personal data for advertising.

Agentic AI is emerging as a significant force in the managed services sector, with the potential to automate up to 80% of routine tasks. Howard M. Cohen and Karl Palachuk, both seasoned experts in the IT partner ecosystem, discussed the current confusion among Managed Service Providers (MSPs) regarding the application and benefits of agentic AI. They emphasized the need for MSPs to understand the distinction between assistive and autonomous agents, as well as the importance of developing a clear strategy for integrating AI into their service offerings.Cohen highlighted the proliferation of misinformation surrounding AI, particularly at industry conferences, which has contributed to the uncertainty among MSPs. He has created a dedicated platform, Gentic MSP, to curate relevant AI news and insights specifically for MSPs. The conversation also touched on the necessity for MSPs to adapt their roles and workflows in response to AI advancements, with a focus on leveraging AI tools to enhance operational efficiency and client service.The episode also explored the historical context of automation in IT services, drawing parallels between the current AI landscape and the earlier adoption of cloud technologies. Palachuk noted that many IT consultants have not needed to develop deep automation skills due to the rise of cloud solutions, which may hinder their ability to capitalize on AI opportunities. Both experts agreed that MSPs must proactively build internal expertise in AI to remain competitive, rather than waiting for the market to mature.For MSPs and IT service leaders, the key takeaway is the urgency to embrace AI as a tool for enhancing service delivery and operational efficiency. By investing in training and developing partnerships with AI solution providers, MSPs can position themselves as forward-thinking solution providers rather than falling behind in a rapidly evolving landscape. The discussion underscores the importance of adapting to technological advancements to meet client needs effectively.  💼 All Our SponsorsSupport the vendors who support the show:👉 https://businessof.tech/sponsors/ 🚀 Join Business of Tech PlusGet exclusive access to investigative reports, vendor analysis, leadership briefings, and more.👉 https://businessof.tech/plus 🎧 Subscribe to the Business of TechWant the show on your favorite podcast app or prefer the written versions of each story?📲 https://www.businessof.tech/subscribe 📰 Story Links & SourcesLooking for the links from today’s stories?Every episode script — with full source links — is posted at:🌐 https://www.businessof.tech 🎙 Want to Be a Guest?Pitch your story or appear on Business of Tech: Daily 10-Minute IT Services Insights:💬 https://www.podmatch.com/hostdetailpreview/businessoftech 🔗 Follow Business of Tech LinkedIn: https://www.linkedin.com/company/28908079YouTube: https://youtube.com/mspradioBluesky: https://bsky.app/profile/businessof.techInstagram: https://www.instagram.com/mspradioTikTok: https://www.tiktok.com/@businessoftechFacebook: https://www.facebook.com/mspradionews Hosted by Simplecast, an AdsWizz company. See pcm.adswizz.com for information about our collection and use of personal data for advertising.

The 2025 State of the MSP Report from TechPartners reveals a rapidly evolving managed service provider (MSP) industry, with nearly half of surveyed MSPs reporting revenues below $5 million. This indicates a market ripe for consolidation, as 60% of MSPs express interest in acquiring other firms while 28% are open to being acquired. The report highlights a shift in MSP roles, with 68% positioning themselves as one-stop-shop partners and 44% identifying as security partners, reflecting a growing demand for enhanced service offerings. However, only 16% of MSPs have audited their internal processes for compliance, suggesting that many are investing in advanced technologies like artificial intelligence (AI) on unstable foundations.Flamingo, a Miami-based startup, has launched OpenFrame, an open-source platform designed to reduce costs for MSPs, which typically operate on low-profit margins of 8-12%. With $2.2 million in pre-seed funding, Flamingo aims to enhance operational efficiency and profitability, potentially increasing margins to 50-60%. Meanwhile, SuperOps has introduced an AI-native unified endpoint management platform targeting IT departments directly, consolidating workflows across various operating systems. This shift raises questions for MSPs about competition and the evolving landscape of IT service delivery.Air IT Group has rebranded to focus on empowering small and medium-sized enterprises in the UK by integrating AI and automation into their service model. This approach aims to transform technology from a burden into a growth enabler, addressing the underutilization of technology among SMEs. The company emphasizes the importance of enhancing customer experience and improving internal resource utilization, showcasing a trend where MSPs are moving from merely fixing technology to driving business outcomes.For MSPs and IT service leaders, the implications of these developments are significant. As the industry matures, those who standardize, document, and measure outcomes will gain leverage in a consolidating market. The focus on governance and accountability in AI deployment will be crucial, as automation increasingly takes on operational tasks. MSPs must adapt their business models to prioritize outcome-based delivery rather than traditional billing methods, ensuring they remain competitive in a landscape where AI capabilities are becoming commonplace.Three things to know today00:00 TechPartner’s 2025 MSP Report: Small Firms Chase AI, While Consolidation Accelerates04:12 Flamingo’s OpenFrame Challenges Legacy RMMs as SuperOps Goes Direct and Air IT Doubles Down on AI07:47 Agentic AI Forces a Redesign: Why Governance, Not Gadgets, Will Define the Next MSP Era This is the Business of Tech.    Supported by:  https://saasalerts.com/mspradio/  💼 All Our SponsorsSupport the vendors who support the show:👉 https://businessof.tech/sponsors/ 🚀 Join Business of Tech PlusGet exclusive access to investigative reports, vendor analysis, leadership briefings, and more.👉 https://businessof.tech/plus 🎧 Subscribe to the Business of TechWant the show on your favorite podcast app or prefer the written versions of each story?📲 https://www.businessof.tech/subscribe 📰 Story Links & SourcesLooking for the links from today’s stories?Every episode script — with full source links — is posted at:🌐 https://www.businessof.tech 🎙 Want to Be a Guest?Pitch your story or appear on Business of Tech: Daily 10-Minute IT Services Insights:💬 https://www.podmatch.com/hostdetailpreview/businessoftech 🔗 Follow Business of Tech LinkedIn: https://www.linkedin.com/company/28908079YouTube: https://youtube.com/mspradioBluesky: https://bsky.app/profile/businessof.techInstagram: https://www.instagram.com/mspradioTikTok: https://www.tiktok.com/@businessoftechFacebook: https://www.facebook.com/mspradionews Hosted by Simplecast, an AdsWizz company. See pcm.adswizz.com for information about our collection and use of personal data for advertising.

Recent advancements in quantum computing are pushing the technology closer to practical application, with companies like Google, IBM, and ICONIC making significant strides in stabilizing quantum systems. This progress poses risks to current encryption methods, as traditional security measures may become obsolete due to quantum capabilities. The National Institute of Standards and Technology (NIST) is advocating for the adoption of post-quantum cryptography (PQC) to protect sensitive data, emphasizing the urgency for organizations to reassess their security protocols. Failure to act could result in severe repercussions, including data breaches and regulatory noncompliance.Google's quantum computing division has published research demonstrating practical applications for quantum computers, such as using quantum technology for nuclear magnetic resonance to estimate atomic structures. The company is shifting its focus from merely proving quantum feasibility to making the technology cost-effective. Sundar Pichai, CEO of Alphabet, expressed optimism about the timeline for commercially viable quantum computing, while industry opinions vary, with some experts suggesting practical applications may still be decades away. This divergence highlights the uncertainty surrounding the timeline for widespread quantum adoption.In addition to quantum computing advancements, the episode discusses the integration of PQC into mainstream technology. Microsoft Windows 11 has begun incorporating PQC algorithms into its cryptographic APIs, allowing for the generation of PQC key pairs and hybrid TLS handshakes. Meanwhile, companies like Palo Alto Networks are updating their software to support quantum-resistant encryption. These developments indicate a growing recognition of the need for quantum-safe security measures as organizations prepare for the potential threats posed by quantum computing.For Managed Service Providers (MSPs) and IT decision-makers, the implications are clear: proactive measures are necessary to prepare for the quantum computing era. MSPs should assist clients in inventorying their cryptographic systems and developing a roadmap for adopting PQC. As the U.S. government urges organizations to transition to quantum-safe encryption by 2035, MSPs must prioritize updating protocols and exploring quantum-resistant solutions. The transition to quantum-safe encryption is a multi-year effort, and early preparation will help mitigate future risks associated with quantum advancements. One thing to know today00:00 All About Quantum Computing This is the Business of Tech.    Supported by:    💼 All Our SponsorsSupport the vendors who support the show:👉 https://businessof.tech/sponsors/ 🚀 Join Business of Tech PlusGet exclusive access to investigative reports, vendor analysis, leadership briefings, and more.👉 https://businessof.tech/plus 🎧 Subscribe to the Business of TechWant the show on your favorite podcast app or prefer the written versions of each story?📲 https://www.businessof.tech/subscribe 📰 Story Links & SourcesLooking for the links from today’s stories?Every episode script — with full source links — is posted at:🌐 https://www.businessof.tech 🎙 Want to Be a Guest?Pitch your story or appear on Business of Tech: Daily 10-Minute IT Services Insights:💬 https://www.podmatch.com/hostdetailpreview/businessoftech 🔗 Follow Business of Tech LinkedIn: https://www.linkedin.com/company/28908079YouTube: https://youtube.com/mspradioBluesky: https://bsky.app/profile/businessof.techInstagram: https://www.instagram.com/mspradioTikTok: https://www.tiktok.com/@businessoftechFacebook: https://www.facebook.com/mspradionews Hosted by Simplecast, an AdsWizz company. See pcm.adswizz.com for information about our collection and use of personal data for advertising.

OpenAI has officially transitioned to a for-profit corporation, a move approved by Delaware Attorney General Kathy Jennings. This restructuring allows OpenAI to raise capital more effectively while maintaining oversight from its original non-profit entity. Microsoft now holds a 27% stake in the new structure, valued at over $100 billion, and OpenAI has committed to purchasing $250 billion in Microsoft Azure cloud services. This agreement includes provisions for Artificial General Intelligence (AGI), which will require verification from an independent expert panel before any declarations are made. Critics have raised concerns about the potential compromise of the non-profit's independence under this new arrangement.Research from cybersecurity firm SPLX indicates that AI agents, such as OpenAI's Atlas, are becoming new security threats due to vulnerabilities that allow malicious actors to manipulate their outputs. A survey revealed that only 17.5% of U.S. business leaders have an AI governance program in place, highlighting a significant gap in responsible AI use. The National Institute of Standards and Technology emphasizes the importance of identity governance in managing AI risks, suggesting that organizations must embed identity controls throughout AI deployment to mitigate potential threats.Additionally, a critical vulnerability in Microsoft Windows Server Update Services (WSUS) is currently being exploited, with around 100,000 instances reported in just one week. This vulnerability allows unauthenticated actors to execute arbitrary code on affected systems, raising concerns among cybersecurity experts, especially since Microsoft has not updated its guidance on the matter. Meanwhile, Microsoft 365 Copilot has introduced a new feature enabling users to build applications and automate workflows using natural language, which could lead to governance challenges as employees create their own automations.For Managed Service Providers (MSPs) and IT service leaders, these developments underscore the need for enhanced governance and security measures. The shift of OpenAI to a for-profit model signals a tighter integration with Microsoft, necessitating familiarity with Azure's AI stack. The vulnerabilities associated with AI agents and the WSUS exploit highlight the importance of proactive security measures. MSPs should prioritize establishing governance frameworks around AI usage and ensure robust identity management to mitigate risks associated with these emerging technologies.Four things to know today00:00 OpenAI Officially Becomes a For-Profit Corporation, Cementing $100B Partnership with Microsoft03:30 AI Agents Are Becoming a Security Nightmare—Because No One Knows Who They Really Are07:53 Hackers Are Targeting WSUS Servers — and You Could Be Distributing Malware Without Knowing It09:28 Microsoft’s New Copilot Features Turn AI from Assistant to App Creator, Raising Governance Questions This is the Business of Tech.    Supported by:  https://scalepad.com/dave/https://getflexpoint.com/msp-radio/  💼 All Our SponsorsSupport the vendors who support the show:👉 https://businessof.tech/sponsors/ 🚀 Join Business of Tech PlusGet exclusive access to investigative reports, vendor analysis, leadership briefings, and more.👉 https://businessof.tech/plus 🎧 Subscribe to the Business of TechWant the show on your favorite podcast app or prefer the written versions of each story?📲 https://www.businessof.tech/subscribe 📰 Story Links & SourcesLooking for the links from today’s stories?Every episode script — with full source links — is posted at:🌐 https://www.businessof.tech 🎙 Want to Be a Guest?Pitch your story or appear on Business of Tech: Daily 10-Minute IT Services Insights:💬 https://www.podmatch.com/hostdetailpreview/businessoftech 🔗 Follow Business of Tech LinkedIn: https://www.linkedin.com/company/28908079YouTube: https://youtube.com/mspradioBluesky: https://bsky.app/profile/businessof.techInstagram: https://www.instagram.com/mspradioTikTok: https://www.tiktok.com/@businessoftechFacebook: https://www.facebook.com/mspradionews Hosted by Simplecast, an AdsWizz company. See pcm.adswizz.com for information about our collection and use of personal data for advertising.