Podcast
Business of Tech: Daily 10-Minute IT Services Insights
Hosted by MSP Radio · EN
In 10 minutes daily, The Business of Tech delivers the latest IT services and MSP-focused news and commentary. Curated to stories that matter with commentary answering 'Why Do We Care?', channel veteran Dave Sobel brings you up to speed and provides resources to go deeper. With insights and analysis, this focused podcast focuses on the knowledge you need to be effective, profitable, and relevant.
128episodes
Episodes
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Google Redesigns Search: Automation Control Emerges as Core MSP Responsibility
May 2200:13:42Tap to summarizeThe structural shift outlined in this episode is the rapid evolution of search and productivity interfaces from static query tools to agentic platforms capable of autonomous action, oversight, and automation. Companies such as Google are redesigning search at the interface level, integrating multimodal input and agentic workflows powered by AI models like Gemini 3.5 Flash. The dynamic is not competition at the model level, but rather a pivot toward which provider can offer policy enforcement, cost controls, compliance, and documented governance over increasingly complex agent-driven environments. The most consequential development is Google’s redesign of its search box for the first time in 25 years, transitioning to an AI-powered, chatbot-style interaction that can process longer prompts, images, files, and monitor tasks directly within the browser. According to New York Times and Channel Life New Zealand, this change embeds AI agents as defaults in the workflow, underpinned by Google’s commercial growth—ad clicks up by 6%, cost per click up 7%, with profits over $132 billion since 2022. The shift is visible in adoption data as well: ChannelDive reports Anthropic’s Claude overtook OpenAI’s GPT suite for business usage, while Gartner forecasts $2.59 trillion total AI spending in the year, but only $33 billion is model-specific. Supporting developments reinforce risk and operational complexity as AI transitions into core business processes. Channel-focused reports note that vendors are offering managed agent services, operational sandboxes, and white-label security operations to simplify agent deployment and lower entry barriers. OpenAI pitching “buy before you try” guarantees, and launches like Acronis Cyber Freight — promised as “predictable” and “protected by default” — reflect client demand for reliability over raw capability. Across these moves, partners and IT providers are being drawn into defining, monitoring, and governing the new automation layers, with increasing requirements for documentation, provenance, and workflow auditing. For MSPs and technology leaders, the operational implications are direct and substantive. The work now centers on defining governance frameworks—inventorying systems that can act autonomously, classifying authority and registration requirements, building audit trails, and delineating contractual boundaries for automation responsibility. Providers who approach this as standard support risk carrying unpriced operational and compliance burdens, especially in environments where unauthorized automations or unregistered connectors proliferate. The emergent requirement is to treat agent governance as a managed service, pricing it separately, and establishing clear evidence and escalation protocols to avoid absorbing blame and liability for automation-driven incidents. 00:00 Beyond Blue Links 04:30 Predictability Wins 06:39 Govern or Absorb 09:19 Why Do We Care? Supported by: Moovila ScalePad 💼 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.
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Security Proof Becomes an MSP Service: Insurance, Trustmarks, and the Evidence Operating Model
May 2000:14:04Tap to summarizeSecurity operations for MSPs are undergoing a structural shift from simply deploying additional tools to establishing a liability-focused accountability model, where the ability to provide operational evidence of controls is becoming as critical as the tools themselves. This shift is catalyzed by corporate insurance, procurement, and third-party verification structures—such as those cited by WatchGuard, Assurix, and the NIST AI cybersecurity overlays—demanding verifiable security outcomes and alignment with external standards, rather than relying on provider assertions alone. Survey data referenced from Cybersmart and Beta News reveals that 75% of MSPs experienced at least one breach in the past year, while 54% endured multiple incidents; concurrently, SMB buyers state security is a top priority, but only 13% of microbusinesses operate proactively. According to WatchGuard’s global survey of 842 professionals, 94% of clients using dedicated MSPs feel adequately protected, yet 58% indicate intent to change providers within three years—highlighting a disconnect between perceived and delivered value. The emergence of Assurixs’ live MSP Trustmark, based on 64 operational controls, further formalizes evidence requirements as market prerequisites. These dynamics are reinforced by shifts in insurer behavior and regulatory alignment. Huntress and Acrisure are collectively rolling out a cyber insurance package contingent on adoption of Huntress’s managed detection and response, explicitly tying coverage eligibility to verifiable provider-side controls. The maturing of NIST’s AI cybersecurity overlays introduces new standardized control checklists likely to become operational requirements. Additionally, reports from Omdia and MSP Channel Insights note that vendor ecosystems are now rewarded for integrating security as an outcome with automation and multi-tenant integration—reflecting market demand for reliable, defensible evidence of controls. For MSPs and IT leaders, these developments drive the need to restructure contracts to clearly delineate evidence obligations, manage liability exposure, and price evidence production as a formal deliverable rather than as unreimbursed support. Failing to do so risks absorbing unfunded post-incident evidence work, margin erosion, and loss of control over the security value conversation. Operationally, maintaining live accreditations, standing up a formal evidence management function, and explicitly excluding unmanaged SaaS, identity, and AI workflows from baseline service tiers are becoming necessary to maintain profitability and accountability. 00:00 Breach, Then Switch 04:52 SaaS Blind Spot 07:16 Prove or Pay 10:24 Why Do We Care? Supported by: Zero Networks HaloPSA 💼 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.
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Vendor-Integrated AI Increases Liability Exposure for MSPs Managing Client Systems
May 1900:14:54Tap to summarizeThe dominant structural shift highlighted in this episode is the migration of AI from experimental tools into directly embedded workflows within widely used small business platforms. Vendors like Anthropic, with its Claude for Small Business connectors to QuickBooks, HubSpot, Canva, Google Workspace, and Microsoft 365, are abstracting away technical complexity by offering concrete, prebuilt automations that address specific business processes. This embedding moves operational risk and ambiguity from model selection to the permissions layer, where control, oversight, and accountability become central concerns for providers supporting these environments. A key supporting development is Anthropic’s rapid market penetration, with the VentureBeat-cited Ramp AI Index reporting 34.4% business adoption of Claude in the US—outpacing OpenAI’s 32.3%. The implication, reinforced by research from the Global Technology Industry Association, is that AI service revenue is rising sharply, but only 30% of IT service providers in the UK and Ireland report fully integrating AI into their models. Simultaneously, governance gaps are being exposed: The Register notes user data may be employed for model training unless privacy settings are proactively changed, leaving operational risk exposed through default configurations. Additional developments reinforce the risk and accountability shift. OpenAI has established a subsidiary focused on direct deployments and implementation, seeking to guarantee quality and consistency in enterprise integration. CIO Dive references Palo Alto Networks research indicating 77% of CIOs claim AI risk management confidence, yet only 30% have real usage visibility, and 62% cite rogue agent concerns. The discussion connects these risks back to routine SMB operations, where AI-enabled workflows can act on core business data, increasing MSP proximity to liability and making explicit who controls connectors, permissions, and incident response documentation. For MSPs and IT service firms, the operational consequence is that supporting AI-enabled platforms now obligates them to establish and document governance, inventory, data access, and approval processes. Risk shifts from abstract model performance to concrete operational exposure, especially as AI systems interconnect with finance, identity, communication, and other high-stakes subsystems. Providers lacking scoped service definitions and contractual clarity face unpriced liability, while those that implement billable AI governance frameworks—such as audit templates, privacy reviews, and incident-ready contracts—are positioned to address demand from clients, auditors, and insurers. Neglecting these steps is likely to result in exposure to vendor-driven terms and diminished operational standing. 00:00 Workflow Takeover 04:20 Readiness Crisis 06:24 Govern or Expose 11:13 Why Do We Care? Supported by: NerdioScalePad 💼 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.
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Chad Gaydos on AI Moving Procurement from Record-Keeping to Automated Decision Execution
May 1800:22:11Tap to summarizeThe episode highlights a structural transition from software systems that record tasks to platforms that actively participate in business decisions, particularly through agentic AI in procurement. This shift is anchored in the adoption of AI-driven SaaS solutions by mid-market organizations, as seen with Procurify, which reports managing over $100 billion in organizational spend. The mechanism moves beyond basic automation, assigning software agents responsibilities that were traditionally human—such as flagging compliance breaches or routing approvals—directly within operational workflows. According to Chad Gaydos, current deployments of such agentic AI commonly automate tasks like invoice detail verification, policy enforcement, and contract compliance. These developments are most prominent in mid-market environments, where limited staffing—sometimes with no dedicated procurement analysts—drives greater reliance on platforms to perform core operational functions. The focus is not on completely replacing personnel but on supplementing constrained teams and ensuring repeatable enforcement of controls, with organizations leveraging these systems to gain efficiency in both cost and process governance. Additional points discussed reinforce the central shift, such as the distinctive pace of adoption among mid-market firms compared to enterprises. He identifies that smaller organizations often approach these technologies with greater agility and willingness to accept risk, while also displaying heightened dependency on system trust and governance frameworks. The episode also references "frontier firms" co-defined by Microsoft and Procurify, characterized by their forward-leaning adoption of AI and structured standards for technological governance. Variability in governance, auditability, and trust across different organization sizes underlines the operational diversity in adopting agentic platforms. For MSPs and IT leaders, these shifts raise practical concerns around governance design, accountability for software-driven actions, and operational dependency on vendor platforms. Effective risk mitigation requires establishing audit trails, clear standards for automation versus human oversight, and robust compliance controls. Providers supporting mid-market clients should anticipate requests for prescriptive guidance on data and process governance, while also preparing for greater operational reliance on systems that automate, not merely record, business decisions. 💼 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.
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AI Integration Into PSA and Security Platforms Forces New Governance Demands on MSPs
May 1500:11:53Tap to summarizeThe core structural shift described in this episode is the integration of AI as an active workflow actor within managed service environments, not simply as an isolated tool. This mechanism alters the governance and accountability requirements for MSPs, as AI now interacts directly with core business platforms and operational data. Companies like Microsoft are embedding AI features—such as Copilot and a legal AI agent—across productivity and security environments, while reports from Axios Future of Cybersecurity and The Register highlight that AI activity is increasingly touching managed identity, email, data, and security infrastructures. The episode’s primary evidence centers on the adoption of AI-driven productivity and legal tools within Microsoft 365, with broad rollout timelines targeting early June. Microsoft’s deployment of legal AI agents in Word—as outlined by The Register and Thoreau—demonstrates that AI is being implemented to review contracts, draft language, and check citations, embedding itself into sensitive business workflows. Additionally, Proofpoint's formation of an MSP business unit around 365 security further reflects this shift, consolidating risk and workflow management where client data, identity, and security converge. Supporting developments reinforce this trend of workflow centralization and accountability ambiguity. Vendors are introducing dashboards—such as Anthropic’s Claude code agent view—that offer improved visibility into AI-driven processes; however, as noted, visibility alone does not constitute governance. The emergence of platforms like Halo PSA and features from JumpCloud exemplify the market response, where vendors and MSPs are being forced to tighten control and monitoring around AI-driven work, including automation, ticketing, and remediation workflows. The episode notes that unmanaged automation creates governance risks that operators must close. The practical implication for MSPs is a set of new operational burdens: rising margin pressure from unpriced AI governance work, contract risk if responsibilities for AI-generated actions remain undefined, and new demands for auditability, evidence retention, and workflow documentation. Providers must build inventories not only of AI tools but also the workflows they touch, define explicit service scope, and establish pricing models for governance functions. The operational tradeoff is an increasing need for infrastructure and process maturity, as the expectation of transparent, accountable AI-driven work is now a baseline for client trust and risk management. 00:00 Managed AI Risk 03:50 Scope or Absorb 06:03 Four MSP Pressures 08:35 Why Do We Care? Supported by: MoovilaHaloPSA JumpCloud 💼 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.
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AI Accelerates Exploit Creation and Evidence Burden for MSPs, Says Google and Proofpoint
May 1300:13:55Tap to summarizeThe central structural shift identified is the acceleration and scaling of cyber risks due to artificial intelligence, which turns formerly expert-driven security processes into repeatable, rapid workflows. Major threat intelligence units, including Google's Threat Intelligence group, are now documenting the use of AI in both identifying and weaponizing software vulnerabilities. The landscape is further shaped by the proliferation of AI-generated and AI-assisted online content, contributing to an environment where traditional verification and control mechanisms are less reliable. The episode presents concrete evidence: Google reported criminal hackers leveraging AI models—explicitly noting the use of non-Google technology—to discover a previously unknown zero day, while The Verge and Wired highlighted AI-assisted attempts to bypass multi-factor authentication and the impact of synthetic content even within cybercrime forums. Research covered by 404 Media documented that by mid-2025, a third of newly published websites were AI-influenced. These observed changes drive threat intelligence teams to treat AI as a working hypothesis in live investigations. Additional supporting developments reinforce the broadening security and operational impact. Tools such as Proofpoint's Prism Investigator and OpenAI’s Daybreak show the push toward automated threat detection, investigation, and reasoning pipelines, altering expectations from detection to defensible reconstruction and evidence generation. Analysis of supply chain compromises—such as tampered software installers and malware leveraging already-exposed cloud systems—demonstrates how automation reduces defender response windows while increasing operational pressure on providers. Reports from Small Biz Trends and channel Life show significant implementation gaps, with only a minority of small businesses deploying password managers, and a wide disparity between optimism and readiness for AI-powered security. For MSPs and IT leaders, these trends tighten operational accountability. The tradeoff shifts from focusing on technology stacks to delivering concrete evidence of patch application, identity verification, data retention, and audit support. Providers face increasing pressure to standardize verification workflows, reduce patch validation cycles, and make evidence retention a default process. The operational complexity intensifies—either the MSP develops controls to govern automation and evidentiary rigor, or becomes the default risk absorber for ambiguous, fast-moving attack paths shaped by both client and attacker use of automation. 00:00 Zero-Day 04:06 Speed Gap 06:25 Prove It 10:27 Why Do We Care? Supported by: Moovila Zero Networks 💼 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.
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AI Agents Create New Accountability Risks for MSPs Managing Cloud Environments
May 1200:14:25Tap to summarizeAI systems are increasingly embedded as non-human participants within managed environments, driving a structural shift in operational responsibility and exposure for MSPs. This shift is characterized by the integration of AI-powered tools—such as note takers, copilots, connectors, and agents—into core business workflows and SaaS platforms. Companies like Google, Microsoft, and ServiceNow are formalizing AI governance with platform features such as agent registries, policy enforcement gateways, and cross-platform audit trails. Reports from industry sources, including Wired, Rubrik, and regulatory bodies in the EU, substantiate these developments and highlight changing expectations for accountability and control. A key finding, according to security research by Red Access and covered by Wired, is that over 5,000 publicly exposed AI-generated web apps were found on the open web, with about 40% leaking sensitive data ranging from medical records to corporate strategy documents. Rubrik’s Zero Lab survey of over 1,600 IT and security leaders further reports that 86% expect AI agents will surpass existing security controls within a year, while only 23% feel they have full visibility into these agents’ activities. The New York Times and legal organizations note increasing legal and evidentiary risks posed by AI transcription tools in business meetings, warning that ungoverned AI outputs may be subject to discovery in litigation and could compromise attorney-client privilege. Additional developments reinforce the governance and risk gap. Platform vendors are building more granular control and auditing features, but most client environments still include unregulated AI tools, third-party connectors, and manual overrides outside these native boundaries. Regulatory frameworks are evolving to place explicit bans on specific AI outputs and to delay implementation of high-risk AI oversight, as seen in the EU’s provisional AI Act. The integration between Black Kite and Sayari exemplifies how vendors are seeking to connect risk intelligence across supply chains, but operator-level exposure often remains distributed and ambiguous. For MSPs and IT leaders, the practical implication is an immediate requirement to inventory and classify AI participants and outputs within managed domains, clarify contractual scope, and establish evidence-ready policies for audits, incidents, and legal review. Relying solely on vendor platform controls is insufficient, as clients and auditors will expect clear documentation of AI activity, data access, and policy enforcement. Many agreements are not priced or structured for AI governance and may require explicit scope adjustments, upcharges for AI inventory and policy services, and contractual exclusions for unmanaged AI activity to avoid unpriced liability. 00:00 Agents Unchecked 04:49 Control the Bot 06:58 AI Audit Risk 10:38 Why Do We Care? Supported by: Nerdio TimeZest 💼 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.
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New AI Metering Forces MSPs to Rethink Contracts and Prove Control Over Usage
May 1100:13:52Tap to summarizeThe episode reveals a structural shift in the technology landscape: artificial intelligence is becoming a new layer of managed consumption, with measurable impact on infrastructure, contract terms, and operational accountability. This shift is illustrated by leading technology platforms explicitly metering AI usage through compute tokens, storage footprints, and local model deployments. Companies such as Alphabet, Amazon, Microsoft, and Google are integrating AI not only as features but as quantifiable workload layers, leading to economic and governance questions regarding who controls consumption and who assumes the risk of overage or misuse. The most consequential development discussed is the rapid, capital-intensive scaling of AI infrastructure by leading hyperscalers. Alphabet raised its 2026 capital expenditure guidance to a possible $190 billion; Amazon’s AWS revenues rose 28% year-over-year to $37.6 billion, with quarterly capital expenditures reaching $44.2 billion— both moves directly tied to AI infrastructure investments. At the same time, endpoint and storage vendors, such as Apple and Backblaze, are experiencing elevated demand from AI workloads. On the software side, companies like Anthropic are explicitly raising API rate limits and deploying features to formalize the measurement and orchestration of AI-driven processes. Supporting developments include the migration of management and control functions into enterprise platforms and endpoint environments. Microsoft Agent 365 is now broadly available, offering admins centralized policy controls over AI agents across cloud and local machines, with integration into Intune for granular restriction and monitoring. Google’s Chrome browser now automatically downloads 4GB Gemini Nano models to support local AI functions, raising new operational considerations around storage, policy management, and user approval. These developments anchor the thesis that AI is no longer a passive toolset but a consumption and policy domain that requires active oversight. Operationally, MSPs and IT service providers face heightened exposure to contract and governance risk. The presence of invisible AI consumption— in the form of storage expansion, token overages, unauthorized agent actions, or degraded endpoint performance— requires explicit clauses in client agreements and new monitoring capabilities. Providers unable to demonstrate control over AI usage, policy enforcement, and exception handling may inherit both support burdens and unresolved liability. The practical implication is clear: future margins and contract viability will increasingly depend on the ability to meter, document, and govern AI-related activities, rather than simply enabling client access. 00:00 AI Infrastructure Surge 04:17 Control Layer Wins 06:41 MSP Liability Shift 10:50 Why Do We Care? Supported by: ScalePad CometBackup Moovila 💼 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.
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Consumption-Based AI Shifts MSP Role from Access to Governance and Cost Control
May 800:12:42Tap to summarizeThe episode highlights a structural shift from traditional software licensing towards consumption-based AI billing, transforming AI adoption into a source of direct financial exposure and accountability. This mechanism is illustrated by Microsoft’s new administrative controls for Copilot in Windows 11 and platform-wide integration efforts from vendors such as Apple and Amazon. The primary concern is no longer simply enabling access to AI tools, but managing their consumption, controlling costs, and clarifying responsibility for both outputs and consequences. The most consequential development centers around rapidly escalating AI costs and the difficulty organizations face in quantifying usage. According to reporting from The Information, companies such as Uber exhausted their 2026 AI budgets within months, with some daily usage costs reaching approximately $1,000 per user. Simultaneously, The Register cites a survey indicating that a majority of U.S. employees are skeptical about their employers adopting Microsoft’s AI bundles, and many believe alternative tools suffice. Additionally, Apple’s acceptance of a $250 million settlement regarding misleading AI claims signifies a shift from reputational to monetary accountability. Supporting developments further expose operational and governance challenges. Microsoft’s 2026 Work Trend Index, cited by CNET and GeekWire, identifies a disconnect between employee pressure to use AI and leadership’s lack of defined, standardized practices. Apple’s movement toward a third-party extensions model and Amazon’s integration of managed agents into Bedrock are designed to address platform coherence, yet they introduce dynamic complexity in model choice and cost accountability. Gartner’s projections of rising IT spend tied to data center investments further reinforce the infrastructure burden associated with widespread AI adoption. For MSPs and IT service providers, these developments underscore the risks of treating AI as a standard application rather than a managed operational layer. Legacy service agreements rarely specify how AI-driven costs, data exposure, or automation errors are governed. Providers now face new expectations to separate access and licensing from governance, usage auditing, and policy enforcement. Those who adapt by offering discrete AI management services—covering monitoring, cost controls, workflow approvals, and incident review—can align compensation with responsibility, while others risk absorbing escalating vendor complexity and unreimbursed accountability within flat-rate agreements. 00:00 AI Bill Due 03:31 Culture Blocks AI 05:49 AI Accountability Gap 09:16 Why Do We Care? Supported by: Moovila HaloPSA 💼 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.
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Jessica Davis on AI-Driven Pricing: How Microsoft and Kaseya Are Pressuring MSP Margins
May 700:41:43Tap to summarizeThe dominant structural shift addressed is the move of platform vendors away from competing on feature sets toward controlling the governance and billing layer that underpins managed services. This is evident in moves by Microsoft, AWS, and Kaseya, specifically with Microsoft's new licensing tier combining per-seat fees with consumption-based AI add-ons, AWS redefining managed services around agents, and Kaseya introducing action-based pricing for IT management. Analysts noted that these developments collectively place a consumption meter on previously flat-rate services, reconfiguring how MSPs and IT providers will be billed and held accountable. Primary evidence for this shift includes data from Omdia’s channel media report and tracked M&A activity within the MSP sector. The report counted 169 MSP acquisitions in 2025, mirroring prior years’ activity, yet identified that one acquirer—Evergreen Services Group—accounted for 47 deals, illustrating a concentration in acquisition strategies. Notably, 69% of publicly announced deals involved private equity, with the remainder pursued by independent operators. The North American channel media landscape saw significant contraction, with titles dropping from 29 to 18, despite stability in the global outlet count—attributed to both industry consolidation and AI-driven changes in content discovery. Supporting developments include growing use of AI in content production, leading to declining traffic for B2B publications as audiences increasingly access information through automated tools rather than direct visits. The rise of engagement-focused business models and shifts in acquisition criteria—such as Evergreen targeting founder-led MSPs—underscore evolving buyer strategies. Additionally, platform vendors are restructuring their product and pricing models around agent-driven and action-based billing, while shifting their external positioning to emphasize AI, intelligence, and cyber resilience. Operationally, MSPs and IT leaders face increased pricing and margin variability driven by emerging consumption-based licensing and AI service models. The historical per-user, per-month bundle is at risk as vendors experiment with new billing constructs, exposing providers to cost unpredictability and complicating client contracts. Providers lacking internal engineering or acquisition frameworks may be especially exposed, while consolidation and vendor dependency raise governance and accountability stakes. MSPs pursuing higher margin services, such as compliance or cyber resilience offerings, must prepare for new cost structures and intensifying pressure from both customers and vendors regarding efficiency, pricing, and service outcomes.Supported by: Zero Networks Moovila Upcoming event: The Pivotal Point of IT: Building Services for the AI-First Era Date: May 13 at 1p.m. EDT Register: https://go.acronis.com/davesobelaiera 💼 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.
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