Business of Tech: Daily 10-Minute IT Services Insights

OpenAI has made significant strides in the AI landscape with a series of announcements that position it as a leading platform in the industry. The introduction of new models, including the GPT-5 Pro and Sora 2, alongside app integrations like Slack and a new Apps SDK, marks a pivotal moment for the company. These developments aim to enhance user interaction and streamline workflows, allowing users to perform tasks directly within the ChatGPT interface. The partnership with Advanced Micro Devices (AMD) for a multi-billion dollar chip deal further solidifies OpenAI's commitment to expanding its computing capabilities, crucial for the advancement of its AI technologies.In a contrasting scenario, Deloitte has faced scrutiny after delivering a flawed report to the Australian government, which included errors attributed to the use of AI. Despite this setback, Deloitte is moving forward with a significant partnership with Anthropic to deploy their AI chatbot, Claude, across its workforce. This juxtaposition highlights the challenges and risks associated with AI integration in business operations, emphasizing the need for careful governance and oversight. The incident serves as a cautionary tale about the potential pitfalls of relying too heavily on AI without proper verification.The podcast also discusses the broader implications of AI adoption in enterprises, revealing that a majority of AI projects are failing due to governance gaps and a lack of trust in the technology. A survey by Gartner indicates that many IT leaders are concerned about regulatory compliance, with only a small percentage feeling confident in their organizations' ability to manage AI tools effectively. This situation underscores the importance of establishing robust governance frameworks to ensure that AI implementations are both effective and trustworthy.As the AI landscape continues to evolve, the podcast suggests that service providers should pivot towards building governance frameworks and risk management strategies rather than simply promoting AI hype. The focus should shift to creating value through responsible AI use, ensuring that clients can trust the technology they are implementing. This new approach positions governance as a critical service line, essential for navigating the complexities of AI adoption and maintaining client trust in an increasingly automated world. Three things to know today 00:00 OpenAI Builds the Windows of AI: New Models, App Store, SDKs, and a Chip Deal Signal Platform Takeover06:50 Deloitte’s AI Paradox — A Costly Error in Australia, Followed by Its Biggest AI Expansion Yet09:38 AI’s Next Frontier Isn’t Innovation — It’s Accountability, and That’s Where MSPs Win This is the Business of Tech.    Supported by:  https://mailprotector.com/   💼 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.

Enterprises are significantly increasing their investments in AI governance as the risks associated with artificial intelligence become more apparent. A recent report indicates that 98% of organizations plan to boost their governance budgets in the coming financial year, with an average expected increase of 24%. This shift highlights the realization that managing AI is not a plug-and-play solution; organizations must establish multiple lines of defense to handle risks effectively. As AI technologies evolve, refining governance will be an ongoing process, especially as companies face incidents that could lead to substantial financial losses.Public cloud spending is projected to increase dramatically, primarily driven by generative AI workloads. A survey reveals that nearly half of IT leaders expect more than 30% of their cloud budgets to be allocated to generative AI in the coming years. This rapid adoption of generative AI applications necessitates improved cloud cost management strategies, as enterprises brace for higher infrastructure costs. Analysts warn that the financial models supporting this AI boom, particularly for companies like Oracle, which may need to borrow significantly to meet obligations, raise concerns about sustainability.Despite fears of job losses due to AI, a study from Yale University indicates that generative AI has not yet significantly disrupted the job market. The research shows only a slight change in the occupational mix since the launch of ChatGPT, with hiring in the tech sector remaining steady. A significant portion of tech employers plan to hire, particularly for roles related to AI, indicating that the demand for skills like Python and project management is driving this trend. The study suggests that while generative AI has transformative potential, it is too early to assess its long-term effects on employment.In a notable industry development, Huntress has partnered with SureWeb to expand its cybersecurity solutions, marking its first distribution deal. This collaboration allows Huntress's products to be available in the SureWeb marketplace, enhancing security offerings for managed service providers across various regions. The partnership emphasizes the importance of relationships over transactions, contrasting with larger marketplaces. This move reflects a growing trend where vendors prioritize community-focused partnerships, providing opportunities for service providers to access quality cybersecurity solutions while navigating the evolving landscape of AI and technology.Four things to know today 00:00 AI’s Hidden Cost: Governance Budgets Up, Cloud Bills Soar, and Debt Piles High Behind the Boom05:25 Government Shutdown and Policy Turmoil, Not AI, Emerging as Real Threats to U.S. Employment10:17 Pax8’s “Managed Intelligence” Push Highlights Growing Tension Between AI Hype and MSP Readiness13:28 Huntress and Sherweb Redefine Channel Strategy with Relationship-First Distribution Model This is the Business of Tech.    Supported by:  https://cometbackup.com/?utm_source=mspradio&utm_medium=podcast&utm_campaign=sponsorshiphttps://www.auvik.com/              Webinar:   https://bit.ly/msprmail   💼 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.

Full transcript and links to extended interviews is at https://businessof.tech/podcast/datto-sues-slide-2025/What happens when a founder returns to disrupt the company he built, and that company sues him for stealing its secrets? This is the central conflict in the case of Datto v. Slide, a legal battle unfolding in Delaware. Datto, now owned by Kaseya, accuses Slide, founded by former Datto CEO Austin McCord, of misappropriating proprietary technology related to its Hardware Independent Restore (HIR) system. Slide, on the other hand, asserts that it developed its technology independently and that Datto's lawsuit is merely a distraction from the reality that better products will prevail in the market. The lawsuit includes multiple allegations, such as trade secret misappropriation and unfair competition. Datto claims that Slide's technology closely resembles its own HIR, which allows for near-instant recovery of systems across different virtual environments. The complaint details how Datto's HIR operates and the proprietary elements it encompasses, arguing that Slide's founders had access to these trade secrets and used them to expedite their competing platform. Slide counters these claims by emphasizing that its product was built from the ground up, utilizing modern tools and practices that do not infringe on Datto's intellectual property. To provide further context, the podcast features interviews with Slide's founders, who discuss the safeguards they implemented during development to ensure compliance with legal obligations and to avoid using any confidential information from Datto. They assert that their technology is fundamentally different and that their marketing strategies, including a dramatic demonstration involving the destruction of Datto hardware, were intended as light-hearted competition rather than disparagement. The conversation highlights the importance of transparency and trust for Managed Service Providers (MSPs) considering which platform to support. The episode also delves into the broader implications of the case, particularly how litigation can serve as a competitive strategy in a consolidating market. With Kaseya reportedly carrying significant debt, the lawsuit may reflect a defensive posture rather than a commitment to innovation. For MSPs, the ongoing legal battle raises questions about vendor reliability and the potential distractions that litigation can create. Ultimately, the podcast suggests that while the case may settle, the reputational costs for Kaseya could be substantial, impacting its image as a channel-friendly company. 00:00 Intro: Founder vs Incumbent01:45 Case Summary: Datto v. Slide Explained02:22 Inside HIR: The Alleged Trade Secret04:47 Slide’s Defense06:05 Timeline and Next Steps08:36 Interview: Slide Founders Respond14:04 Expert Analysis: Bob Zeidman20:10 Expert Analysis: Prof. Camilla Hrdy24:10 Market Context: Kaseya’s Debt & Strategy26:24 Lessons for MSPs28:33 Closing Take: What This Means for the Channel  💼 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.

Mal Vivek, founder and CEO of Zeb, discusses the rapid growth of her firm, which has become a leader in digital and AI transformation. Zeb has established itself as one of the fastest-growing AWS Premier Tier and Databricks partners, primarily by addressing the challenges small and medium businesses face in implementing AI solutions. Vivek emphasizes the importance of understanding each client's unique business model and tailoring AI solutions to meet their specific needs, rather than offering a one-size-fits-all approach.Vivek highlights the significant shift in lead generation strategies among their clients, who are increasingly utilizing AI to create more targeted and high-quality leads. This change reflects a broader trend where businesses are moving away from traditional lead lists and instead developing custom AI systems that align with their ideal customer profiles. Additionally, she notes the importance of training and upskilling employees through AI, enabling them to access vast amounts of knowledge quickly and efficiently.The conversation also touches on the concept of an "AI-first strategy," which varies in definition across different organizations. For Zeb, this strategy involves identifying repetitive tasks that can be enhanced through AI while ensuring that the human touch remains integral to the customer experience. Vivek stresses the need for restraint in digital transformation, arguing that not every process should be automated, especially when personal interaction is a key component of a business's success.Finally, Vivek discusses the evolving business models driven by AI, including a shift towards value-based pricing. She explains how Zeb structures its pricing around measurable outcomes and mutual agreements on success metrics, ensuring that both the firm and its clients benefit from the results achieved. This approach not only fosters accountability but also aligns the interests of Zeb with those of its customers, ultimately driving better business outcomes.  💼 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.

Diving into the evolving landscape of the partner ecosystem, the discussion centers around three major forces shaping the industry by 2030. First, cloud marketplaces are projected to reach $163 billion in transactions, with nearly 60% of that being partner-led. This shift signifies a redefinition of partner value in the marketplace era, moving beyond traditional procurement methods. Second, the rise of AI services is highlighted, with a projected $267 billion opportunity by 2030, growing at an impressive 35% CAGR. This transition emphasizes the importance of packaging, governance, and delivering measurable outcomes rather than merely developing AI technologies.The conversation also delves into the critical role of cybersecurity as a services multiplier, with a study indicating that for every dollar spent on the CrowdStrike Falcon platform, partners can generate over $7 in services revenue. This statistic underscores the potential for partners to leverage cybersecurity solutions to enhance their service offerings. Jay McBain, Chief Analyst at Omdia, provides insights into how these trends impact channel partners, vendors, and the future of IT services, emphasizing the need for partners to adapt to these changes. As the discussion progresses, the challenges and opportunities for partners in the AI landscape are examined. The conversation points out that while AI is becoming a feature rather than a standalone product, partners must engage with business leaders across various departments to capitalize on the growing demand for AI-driven solutions. The importance of understanding customer needs and aligning services accordingly is stressed, as partners risk being sidelined by larger system integrators and management consultants if they do not adapt.Finally, the dialogue touches on the changing economics of partnering, particularly in light of recent shifts by major vendors like Microsoft and Cisco, which are cutting back on their partner networks. This consolidation raises questions about how partners can continue to thrive in a landscape where margins are shrinking. The emphasis is placed on the necessity for partners to rethink their business models, focusing on delivering high-value services and leveraging the opportunities presented by AI and cybersecurity to ensure sustainable growth in the future.  💼 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.

Perplexity has made a significant move by dropping the price of its AI browser, Comet, from $200 a month to free, igniting what could be an AI browser war. This decision aims to help users navigate the overwhelming amount of low-quality online content by providing tools to summarize web pages and extract key information. A $5 monthly subscription will offer access to content from reputable media outlets, as Perplexity seeks to establish fair revenue-sharing practices with publishers. This shift comes amid ongoing legal challenges regarding content use, but the company emphasizes its commitment to high-quality sources.The recent U.S. government shutdown has led to the expiration of the Cybersecurity and Information Sharing Act of 2015, raising concerns about the future of cybersecurity collaboration. This law provided essential protections for organizations sharing cyber threat intelligence, and its absence is expected to hinder effective incident response. Experts warn that organizations may become more cautious about sharing vital information without the legal protections previously afforded, potentially increasing the risk of cyber attacks as adversaries exploit the disruption.In the tech industry, rumors are circulating about a potential investment deal between Apple and Intel, which raises questions about the future of the chip manufacturer. Apple, having previously transitioned away from Intel chips for its MacBooks, is now considering a collaboration that could see Intel manufacturing chips for Apple's data centers or producing Apple-designed chips. Meanwhile, Apple appears to be stepping back from its Vision Pro headset, which has not gained significant traction in the market, and is instead focusing on developing more affordable smart glasses.Managed service providers (MSPs) are at a critical junction as AI transitions from a luxury to a necessity. A significant portion of organizations lack policies to manage AI adoption effectively, creating both risks and opportunities for service providers. As clients demand faster resolutions and strategic insights, MSPs must modernize their services and establish governance to ensure AI delivers measurable value. The podcast emphasizes the importance of embedding AI capabilities into services rather than selling it as a standalone product, urging providers to focus on delivering outcomes that clients cannot achieve elsewhere.Four things to know today00:00 Perplexity Makes AI Browser Comet Free, Challenging Chrome, Safari, and Edge03:41 U.S. Shutdown Weakens Cyber Defense as Info-Sharing Law Expires, While NIST Races to Build Cyber AI Framework07:09 Apple Rumored to Invest in Intel Amid U.S. Chip Push, While Retreating From Vision Pro in Favor of Smart Glasses10:12 AI Is Becoming the Airline Business: Why MSPs Must Embed Capability, Not Sell Commodity This is the Business of Tech.    Supported by:  https://mailprotector.com/https://timezest.com/mspradio/ Webinar:  https://bit.ly/msprmail   💼 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.

Small to medium-sized businesses (SMBs) are significantly increasing their technology budgets, focusing on strategic investments that support long-term growth. According to a study by Forrester Consulting, 88% of SMBs plan to enhance their cloud strategies and cybersecurity through increased spending on third-party services. The study also highlights a growing emphasis on improving customer experience and reducing enterprise risk, with cloud-based disaster recovery solutions and hybrid cloud strategies becoming essential. However, the integration of AI services into the economy is expected to take years, as businesses need time to learn about new AI products and train their employees.The UK government has issued a second Technical Capability Notice requiring Apple to provide access to encrypted data and messages of British users stored on its iCloud service. This directive follows a previous request that raised diplomatic tensions with the US and has led Apple to withdraw its Advanced Data Protection Service in the UK, weakening user privacy. The implications of this move are significant for SMBs that rely on iCloud, as it introduces potential security risks and highlights the need for additional encryption measures.Microsoft is facing pushback as it prepares to end free security updates for Windows 10, which is set to occur on October 14, 2025. A coalition of organizations, including repair shops and advocacy groups, is urging Microsoft to extend these updates, citing concerns that many PCs will be left insecure or unusable. With a significant portion of Windows 10 machines unable to upgrade to Windows 11, businesses are left with difficult choices regarding their operating systems, potentially leading to increased e-waste.In the realm of AI, major companies like Microsoft, Salesforce, and Stripe are launching new tools that integrate AI capabilities into their existing platforms. Microsoft has introduced Microsoft 365 Premium, which combines Office applications with AI features, while Salesforce has launched AgentForce Fibes, a tool that streamlines coding through natural language. Stripe's new instant checkout feature within ChatGPT allows users to purchase products directly from chat interfaces. These developments indicate that AI is becoming an integral part of business infrastructure, and MSPs must focus on helping clients leverage these tools effectively to drive business outcomes.Four things to know today00:00 SMBs Are Increasing Tech Budgets for Cloud, Cybersecurity, and AI, But Forrester Warns True AI Value Will Take Years to Realize04:07 UK Pressures Apple on iCloud Again, Forcing Encryption Rollback That Puts Privacy, Business Security, and Global Precedent at Risk05:39 Windows 10 Sunset Becomes a Flashpoint: Market Share, Hardware Incompatibility, and Sustainability Collide in Microsoft’s 2025 Deadline08:23 From Office to Checkout: Microsoft, Salesforce, Stripe, OpenAI, and Google Push AI Into Everyday Work and Consumer Life This is the Business of Tech.    Supported by:  https://scalepad.com/dave/https://mailprotector.com/ Webinar:  https://bit.ly/msprmail  💼 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.

Artificial intelligence is reshaping the technology services landscape, with leading reports from IDC, Gartner, and new offerings from ServiceNow pointing to a future where managing AI sprawl becomes as critical as delivering AI capabilities themselves. High-performing channel partners are leaning into AI specialization, driving measurable outcomes for customers and fueling double-digit growth despite market pressures. At the same time, ServiceNow’s “AI Experience” platform aims to consolidate fragmented AI tools, offering a unified interface that can streamline operations and reduce complexity. The broader market, according to Gartner, is accelerating rapidly, with spending on generative AI projected to surpass traditional software in the coming years—meaning providers who fail to deliver outcomes risk being left behind.Yet the rise of AI isn’t all progress. Studies from Stanford, European labor groups, and cybersecurity organizations reveal a governance crisis brewing in workplaces. Workers are reporting a surge of “workslop”—AI-generated content that looks like productivity but creates no value—costing companies billions. Algorithmic management is eroding worker autonomy, while surveillance and data risks undermine trust in employers. To compound the problem, employees are increasingly feeding sensitive data into AI systems without adequate training, raising new security vulnerabilities. These trends highlight the urgent need for policies, training, and governance frameworks to ensure AI adds value instead of chaos.The disruption is also spilling into specific industries. In translation, human professionals are already being displaced as AI-driven tools gain adoption. WhatsApp’s newly built-in translation capability demonstrates how “good enough” AI can be enough for most users, sidelining human expertise except in fields requiring deep cultural or contextual understanding. The translation sector serves as an early warning sign: as AI grows more capable, other professions—including legal research, finance, and customer support—face similar pressures. The lesson for providers is to help clients identify where AI is appropriate and where human oversight remains essential.Meanwhile, major vendors are steadily encroaching into IT services, redrawing the lines of what MSPs can offer. Acronis is embedding patch management into its backup suite, Slack is introducing AI-powered ticket deflection, GoTo and Nexthink are fusing support and analytics, and IBM is shifting developer tooling to its hosted cloud. Each move chips away at traditional MSP offerings, putting pressure on providers to adapt. The opportunity lies in integration and governance—helping customers unify fragmented tools, ensure compliance, and deliver outcomes that vendors alone cannot. For MSPs, the message is clear: evolve toward higher-value services, or risk being sidelined by the very vendors you once partnered with.Four things to know today00:00 From Growth to Governance: IDC, Gartner, and ServiceNow Show Where AI Is Headed for Partners and Customers05:07 AI at Work: “Workslop,” Surveillance, and Data Leaks Signal Rising Governance Crisis08:42 From WhatsApp to Workflows: AI Translation Disruption Signals Broader Job Shifts Ahead11:33 Vendors Expand Into IT Services: Acronis, Slack, IBM, and GoTo Redraw the MSP Value Line This is the Business of Tech.   Supported by: https://scalepad.com/dave/https://cometbackup.com/?utm_source=mspradio&utm_medium=podcast&utm_campaign=sponsorship Webinar:  https://bit.ly/msprmail  💼 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 episode starts with the passage of California's groundbreaking AI transparency law, marking the first legislation in the United States that mandates large AI companies to disclose their safety protocols and provide whistleblower protections. This law applies to major AI labs like OpenAI, Anthropic, and Google DeepMind, requiring them to report critical safety incidents to California's Office of Emergency Services and ensure safety for communities while promoting AI growth. This regulation is a clear signal that the compliance wave surrounding AI is real, with California leading the charge in shaping the future of AI governance.The second story delves into a new cybersecurity risk in the form of the first known malicious Model Context Protocol (MCP) server discovered in the wild. A rogue npm package, "postmark-mcp," was found to be forwarding email data to an external address, exposing sensitive communications. This incident raises concerns about the security of software supply chains and highlights how highly trusted systems like MCP servers are being exploited. Service providers are urged to be vigilant, as this attack marks the emergence of a new vulnerability within increasingly complex software environments.Moving to Microsoft, the company is revamping its Marketplace to introduce stricter partner rules and enhanced discoverability for partner solutions. Microsoft’s new initiative, Intune for MSPs, aims to address the needs of managed service providers who have long struggled with multi-tenancy management. Additionally, the company’s new "Agent Mode" in Excel and Word promises to streamline productivity by automating tasks but has raised concerns over its accuracy. Despite the potential, Microsoft’s tightening ecosystem requires careful navigation for both customers and partners, with compliance and risk management being central to successful engagement.Finally, Broadcom’s decision to end support for VMware vSphere 7 has left customers with difficult decisions. As part of Broadcom’s transition to a subscription-based model, customers face either costly upgrades, cloud migrations, or reliance on third-party support. Gartner predicts that a significant number of VMware customers will migrate to the cloud in the coming years, and this shift presents a valuable opportunity for service providers to act as trusted advisors in guiding clients through the transition. For those who can manage the complexity of this migration, there’s a once-in-a-generation opportunity to capture long-term customer loyalty. Three things to know today00:00 California Enacts Nation’s First AI Transparency Law, Mandating Safety Disclosures and Whistleblower Protections05:25 First Malicious MCP Server Discovered, Exposing Email Data and Raising New Software Supply Chain Fears07:16 Microsoft’s New Playbook: Stricter Marketplace, Finally Some MSP Love, and AI That’s Right Only Half the Time11:07 VMware Customers Face Subscription Shift, Rising Cloud Moves, and Risky Alternatives as Broadcom Ends vSphere 7 This is the Business of Tech.   Supported by: https://scalepad.com/dave/https://mailprotector.com/ Webinar:  https://bit.ly/msprmail  💼 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 global IT services market is projected to grow significantly, reaching nearly $3 trillion by 2033, driven by the increasing adoption of cloud services, digital transformation, and a rising demand for automation and cybersecurity solutions. Proactive IT services currently dominate the market, accounting for over half of the share, particularly in heavily regulated sectors like banking, financial services, and healthcare. However, the growth of AI adoption is being hindered by spiraling legacy IT costs, which stall modernization efforts and create opportunities for IT service providers to assist organizations in bridging the gap between outdated systems and modern solutions.Investment in artificial intelligence is also on the rise, with global spending expected to reach nearly $1.5 trillion this year and surpass $2 trillion next year. The focus of this investment is broadening beyond traditional tech giants, with significant contributions from Chinese companies and new AI cloud providers. Despite concerns about job displacement due to AI, a recent survey indicates that most business leaders believe AI will enhance employee support rather than lead to significant job cuts. This highlights the importance of training and change management as organizations adapt to new technologies.Major players in the IT sector, such as Microsoft, Intuit, and OpenAI, are making significant advancements in their AI offerings. Microsoft has launched a centralized AI marketplace, integrating thousands of applications to simplify access for businesses. Intuit has improved its generative AI operating system for financial management, while OpenAI has introduced collaborative features for ChatGPT, enhancing team productivity. These developments underscore the competitive landscape as companies race to control the AI stack and provide valuable tools for enterprises.As organizations face the challenges of legacy IT systems and the need for modernization, IT service providers have a crucial role to play. They must help clients navigate the complexities of integrating new technologies while managing the human side of the transition. The emphasis on proactive services, employee training, and effective change management will be essential for businesses to thrive in an increasingly AI-driven environment. The future of IT services lies not just in technological advancements but in the ability to support clients through their transformation journeys.Three things to know today 00:00 Proactive IT Services Lead $1.5 Trillion Market, Banking and Healthcare Fuel Demand05:57 Legacy IT Costs Surging, Report Finds, Forcing Enterprises Toward Modernization07:45 From Marketplaces to Machine Learning: Tech Giants Position AI as Core Business Infrastructure This is the Business of Tech.    Supported by: https://timezest.com/mspradio/https://mailprotector.com/ Webinar:   https://bit.ly/msprmail  💼 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.