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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Insurance Mandates and AI Regulation Shift MSPs from Tool Support to Proof and Liability Management
Apr 2200:12:53Tap to summarizeThe dominant structural shift discussed in the episode is the movement from tools-based differentiation to a market defined by proof and liability. This shift is driven by the rising demand for continuous, auditable control over data location, access, and change—requirements increasingly codified by policy mandates, insurance underwriting, and regional AI governance. As illustrated by France’s shift away from Windows to Linux across government ministries, enforced through formal governmental policy, the conversation is moving beyond technology preferences to mandated operational boundaries and verifiable compliance. The episode cites findings from ESET’s 2026 SMB Cyber Readiness Index, reporting that 86% of US SMBs and 78% of Canadian SMBs carry cyber insurance, with over half of US-insured SMBs required to implement explicit security controls by insurers. Underwriters increasingly demand evidence of controls like MFA, immutable backups, and EDR—not just attestations—at renewal, underwriting, and post-incident. Public sector mandates, such as France’s comprehensive push for sovereignty encompassing OS, collaboration, cloud, and AI platforms, are producing enforceable requirements that cascade to commercial contracts and the MSP channel. Supporting developments include Gartner’s forecast that by 2027, 35% of countries will be locked into region-specific AI platforms. This is reinforced by channel research from Channel Insider and a survey of 333 MSPs by AvePoint and Omnia, both pointing to governance—not AI tooling—as the leading blocker for MSPs adopting new technologies. Microsoft’s move toward metered AI billing and the proliferation of shadow data (with more than 80% of sensitive data potentially sitting outside formal controls, according to Palo Alto Networks research) further highlight how operational complexity and fragmented governance elevate risk for service providers. For MSPs and IT leaders, these trends increase contractual and operational exposure. Failure to recognize that the market is purchasing assurance rather than tool support will leave providers absorbing liabilities related to insurance control failures and unmetered operational costs, often under fixed-fee models that do not account for new governance demands. Providers are advised to immediately review contract language for obligations tied to security controls, reconsider pricing and scope in governance delivery, and prepare for insurer-driven requirements such as third-party access to telemetry or continuous control attestations. The takeaway is that defensible, auditable evidence—not stack management—will define margins, accountability, and long-term client relationships. 00:00 Sovereignty Squeeze 04:22 Spawl Blindspot 07:02 Proof Pays 09:35 Why Do We Care? Supported by: ScalePad CometBackup 💼 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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Metered AI and Variable Output Are Shifting MSP Accountability and Margin Risks
Apr 2100:11:35Tap to summarizeThe episode identifies a structural shift in the integration of generative AI within organizational workflows: variable cost models, unpredictable output quality, and heightened accountability requirements are converging to reshape managed services operations. This shift is exemplified by Anthropic’s move toward usage-based pricing for Claude Enterprise, combining compute consumption with per-user fees, and by reports of major enterprises and intelligence agencies piloting dedicated cybersecurity-focused generative AI models. These trends expose IT service providers, especially MSPs, to cost volatility, operational risk, and new governance challenges as generative AI transitions from experimental implementation to core workflow tooling. Primary evidence includes Anthropic’s revised pricing strategy, which replaces predictable licensing with usage-based billing, introducing financial unpredictability for heavy users. The episode cites reporting from The Verge and The Guardian, noting that AI-generated outputs can create hidden labor through the need for manual review and corrections, while undetected errors escalate into operational disputes and rework. The implementation of generative AI in security-sensitive environments underscores the need to scrutinize how AI-driven processes are metered and governed. Supporting developments reinforce this shift: MSP platform providers such as Enable are embedding generative AI directly into operational workflows, connecting third-party tools to live data. This creates the need for controls over what AI systems can access, approve, and log, particularly in multi-tenant environments. Meanwhile, outcome-based service agreements—such as fixed response-time SLAs—set new client expectations for measurable performance and accountability in AI operations. The market is also rewarding those who wrap unmanaged technology surfaces, like BYOD or AI tooling, with enforceable policies and auditable evidence trails. Operational implications for MSPs include increased pressure on margins due to AI’s variable usage costs colliding with fixed-fee contracts, the challenge of capturing and reporting hidden labor from AI output review, and the necessity for evidence-based governance. Service providers unable to implement and sell AI operations management (“AIOps”) as a billable, controlled service risk becoming de facto shock absorbers for unpriced spend, rework, and disputes. Those who standardize on enforceable budgets, approval gates, audit trails, and compliance-ready reporting stand to protect service margins and reduce liability exposure. 00:00 AI Cost Reckoning 02:39 AI Governance Gap 04:44 Govern or Lose 07:12 Why Do We Care? Supported by: TimeZest 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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Tiffani Bova on AI Compressing the MSP Transition: Faster Change, Higher Risk
Apr 2000:32:27Tap to summarizeThe structural shift facing MSPs is the rapid movement from the traditional “model era” to the “orchestration era,” driven by accelerated adoption of artificial intelligence (AI) and changing vendor enablement programs. This transition is fueled by companies such as Salesforce and technology directions from hyperscalers, with emerging research from the Futurum Group indicating that AI is not only enabling automation but also redefining service delivery models and expanding the roles required from channel partners. Vendors are continually accelerating product and service updates—cited as multiple releases per year—which is shortening adoption cycles and pressuring MSPs to adapt at a speed not previously required. Primary evidence centers on the introduction of the “Frontier partner” concept, which refers to AI-first, outcome-driven service organizations moving beyond hours-for-dollars into models focused on deep technical co-development with clients. According to research referenced by Tiffani Bova, 85% of MSPs expect AI consulting to be a top growth driver. However, there is a documented gap between expectation and execution, with adoption lagging despite broad anticipation. The episode highlights that small businesses may adopt AI more quickly than large enterprises due to operational flexibility, but both MSPs and clients face substantial risk if internal skills, governance, and data practices do not keep pace. Supporting developments include ongoing commoditization of standardized IT support, as self-healing technologies and direct vendor intervention decrease the margins associated with legacy break-fix and support models. The episode also points to the increasing importance of data quality, governance, and sovereignty as core requirements for realizing value from AI tools. New operational hazards arise around energy consumption for compute, increased complexity from multi-vendor agent orchestration, and persistent risks linked to security governance as clients independently adopt AI solutions—sometimes beyond the reach of MSP controls. Operationally, these shifts increase vendor dependency and drive up the need for continual skills renewal within MSP organizations. Pricing for traditional services faces compression, placing more emphasis on adding value layers such as data orchestration, AI-driven workflow optimization, and governance consulting. Service providers are exposed to heightened contract risk when AI outcomes diverge from human oversight, and are required to implement new governance practices to manage data quality and security concerns. The key risk is that lagging adaptation could convert opportunity into obsolescence, particularly as both vendors and clients accelerate their pace of change. Supported by: ScalePadZero 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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Network and Infrastructure Limits Force New Guardrails as AI Expands in MSP Operations
Apr 1700:13:08Tap to summarizeA structural shift is occurring as artificial intelligence transitions from being a tool for generating output to one that executes tasks across IT environments, significantly increasing the demand for robust governance and infrastructure controls. This mechanism is illustrated by the rapid integration of agentic automation into operational platforms, with vendors such as Kyndryl (Agentic Service Management) and SolarWinds (SW1) positioning their AI systems as operational teammates capable of autonomous action. Analysts from firms like Omnia and AvePoint highlight that the product focus is no longer the agent or AI capability itself, but the enforcement layer—encompassing identity management, permissions, logging, quota enforcement, tenant boundaries, and approval workflows. A consequential development is the increased operational burden on networks, as agentic automation increases background and automated traffic. According to Imperial's Bad Bot report, automated traffic now exceeds 51% of all internet activity. Analyst firm Omnia and Lumen CEO Kate Johnson stress that the capacity of underlying networks, and not just compute resources, is becoming a hard constraint for scaling AI-driven operations. For MSPs, this manifests as tangible increases in bandwidth contention, authentication events, and noise in security tooling, leading to resource constraints and increased pressure on triage and incident response. Complementary developments reinforce this shift. Enable is rolling out direct AI operational integration in N-Central and Insight through a custom context protocol, while OpenAI is updating its agents' SDK to include sandboxing and distribution harnesses for stricter boundaries. The New Stack underscores NIST’s recommendation for layered controls, least privilege, network segmentation, and tamper-resistant, replayable logging to contain the risks associated with agentic automation. Research cited by the AI Journal finds that governance and compliance, rather than technical skills, are currently the top barriers to reliable AI adoption among MSPs, driven by the complexity of multi-tenant environments and the requirement to prove control and recoverability. For MSPs and IT providers, these shifts introduce direct operational and contractual risks. Relying on default vendor models without explicit policy ownership or proof-of-execution effectively transfers liability without control. Practical considerations now require MSPs to define approval models, enforce least privilege, audit agent actions, establish recovery playbooks, forecast network and compute demand, and clarify quotas and overage terms in service contracts. Unbounded and unaudited automation is becoming a commercially unacceptable risk, comparable to operating critical systems without proper backups. 00:00 AI Tax: Networks 04:35 Scaffolding Over Models 07:45 Agents Eat Margins 10:05 Why Do We Care? Supported by: ScalePadTimezest 💼 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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Rich Freeman on How VC-Backed AI MSPs Like Treeline Reshape Operator Labor Needs
Apr 1600:34:11Tap to summarizeA structural shift is underway in the managed services sector as venture capital firms move beyond traditional software and vendor investments to fund MSPs directly. This change is exemplified by investments from firms like Andreessen Horowitz, General Catalyst, and Thrive Capital into MSP-specific companies such as Treeline, Titan, and SHIELD. The driving mechanism is the perceived profit potential at the intersection of advanced AI technology and service delivery, with investors targeting AI-native operational models rather than standard rollups or inorganic growth strategies. The episode’s primary evidence centers on Andreessen Horowitz’s $25 million investment in Treeline, marking its entry alongside previously funded firms Titan (with $74 million from General Catalyst) and SHIELD (over $200 million from Thrive and ZBS Partners). According to Speaker A, Treeline employs proprietary AI-driven service desk automation and reports resolving 98% of help desk requests with AI, altering the economics and labor requirements for traditional MSPs. Unlike rollups, Treeline is focused on organic growth, leveraging targeted acquisitions primarily for talent rather than client base expansion. Supporting developments include the parallel strategies of Titan and SHIELD, which also integrate Silicon Valley AI expertise and homegrown tooling to drive operational efficiency. While these companies currently deploy AI internally for service automation, Treeline distinguishes itself by offering customer-facing AI-powered MDR and compliance services immediately. All three firms reflect the shift towards vertically integrated models where software, service automation, and client-facing solutions are developed and deployed in-house, creating potential competitive pressure for both traditional MSPs and larger private equity-backed consolidators. Operationally, these developments introduce risks around increased pricing pressure, labor model disruption, and a potential skills gap for MSPs reliant on off-the-shelf tooling. The focus on organic growth and deliberate scaling by new entrants like Treeline signals that the transition for incumbents is not immediate, but the need for MSPs to evaluate their AI adoption strategy is acute. Relationships alone are unlikely to differentiate providers in the long term; practical safeguards must include closing operational efficiency gaps, building internal AI capability, and considering cooperative models to maintain autonomy while reducing risk of margin erosion or client loss. Supported by: Zero NetworksCometBackup 💼 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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Hyperscaler Cloud Expansion Creates New AI Runtime Risks for MSPs
Apr 1500:11:38Tap to summarizeThe episode reveals an accelerating structural shift toward infrastructure dependence and liability transfer in the context of AI and cloud adoption. According to analysis from Omnia and Synergy Research Group, hyperscalers such as Amazon, Microsoft, and Google are capturing a growing portion of global data center capacity, while real-world constraints—including finite GPU and power availability—are limiting expansion despite surging demand. This concentration makes the underlying compute power less elastic and more volatile, directly impacting how MSPs operationalize AI services. Vendors, meanwhile, are backing away from accountability for AI-driven outcomes, increasingly shifting risk and responsibility onto operators and integrators. Supporting evidence includes Omnia’s report of a 29% year-over-year jump in global cloud infrastructure services spend, reaching $110.9 billion in Q4 2025. AWS revenue increased 24%, Azure 39%, and Google Cloud 50% in the same period. Synergy Research Group found that enterprise on-premises data centers dropped from 56% of global capacity in 2018 to 32% by the end of 2025, with projections to fall further to 19% by 2031. Over 800 new hyperscale data centers are in the pipeline, but constraints on power and electrical equipment mean growth is not limitless. New AI workloads—such as Z AI’s GLM 5.1 model designed for autonomous, multi-hour tasks—underscore that demand is moving from short interactions to long-running processes, increasing unpredictability and operational risk. Additional developments reinforce this structural shift. TechCrunch reported that new tools are designed for prolonged AI workload monitoring, not just deployment, requiring persistent oversight and checkpoints. Microsoft's own Copilot terms flag the platform as for entertainment purposes only, disclaiming reliability and placing responsibility for business use on the operator. Research cited from Boston Consulting Group identified that 14% of workers using AI tools reported significant mental fatigue, with entry-level staff especially vulnerable. These trends highlight the operational and human governance burdens introduced by AI, which are not addressed by vendor promises. For MSPs and IT leaders, these mechanisms create immediate contract and operational risks. Overpromising capacity or reliability exposes providers to gaps in liability, especially since vendors disclaim responsibility for AI outputs. Service agreements should include explicit capacity constraint clauses and audit all AI tool deployments for vendor liability terms before renewals. Establishing governance, monitoring, and accountability as billable service layers is crucial; otherwise, these burdens will default to the MSP as unpaid liability. Hybrid and colocation strategies remain relevant for regulated clients who cannot wholly depend on hyperscalers. Moving forward, structured runtime quotas and compute governance may be required to manage risk as agentic workloads increase and vendor accountability recedes. 00:00 Cloud Capacity Crunch 03:53 Agentic AI Rises 05:32 Liability Shifts Down 08:34 Why Do We Care? Supported by: Nerdio 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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Buyer Trust and Budget Tighten: Data Residency and Auditability Redefine MSP Eligibility
Apr 1400:12:18Tap to summarizeTightening budget constraints and rising data trust requirements are increasing operational pressure on managed service providers by shifting risk and accountability downward through the service chain. Developments in both the European and US markets, together with supply chain volatility and heightened scrutiny of where and how data is handled, are forcing MSPs to redefine both service delivery and governance models. According to Speaker A, MSPs focusing on auditability, clear data residency, and sovereignty will remain viable, while those relying on traditional narratives or ambiguous transformation pitches risk being sidelined. The episode points to evidence from several reports: Politico notes that 8 out of 10 Europeans do not trust US or Chinese firms with their data, highlighting explicit concerns over data location and custodianship. Concurrently, the U.S. Chamber of Commerce Small Business Index, cited by Axios, shows declining confidence among American small businesses, with only 37% expecting new investments and 53% listing inflation as their top challenge. Further, Channel Insider flags “memflation,” with DRAM and NAND prices expected to rise 125% and 243% respectively by 2026, intensifying margin pressure and pricing risk for operators. Additional risk drivers come from both operational and technical layers. Speaker A references the Blackpoint Cyber 2026 threat report, which attributes most breaches to the abuse of trusted credentials and tools—such as RMM solutions and SSL VPNs—rather than new vulnerabilities. Governance gaps are also worsened by declining white-collar hiring, as cited by Gallup and Axios, reducing internal capacity for vendor reviews, incident follow-up, and process controls. Increased automation and outsourcing in response to these gaps tend to create more dependency chains and larger blast radii, making explicit governance even more important. For MSPs, these findings point to operational needs that go beyond technical capability. Contract terms must address volatile input costs directly, with shorter quote validity and explicit repricing clauses. Governance processes should include audit-ready data maps, clear documentation of subprocessors, and proactive credential management. Without these measures, MSPs risk being treated as interchangeable commodities and exposed to margin compression and heightened liability from external compliance and trust requirements. 00:00 SMB Caution 03:48 Coordination Crunch 06:24 RMM Exposed 09:36 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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AI Collapsing the Software Layer: Risks for MSP Roles and Tech Debt with Dusty Gulleson
Apr 1300:21:19Tap to summarizeThe episode focuses on the ongoing collapse of traditional software and service delivery layers, accelerated by the introduction of agent-based artificial intelligence (AI) solutions. According to Speaker B from Tectonic, legacy systems and accumulated technology debt create significant structural pressure on IT providers to modernize, while rapidly advancing AI technologies modify the interface between clients and service providers. The discussion specifically identifies agentic AI as a driver of this shift, fundamentally altering the nature of tasks such as software development, help desk support, and client interaction. A key development discussed involves the replacement of costly, static integrations with dynamic agent-based processes. Speaker B provided a real-world example in which AI was used to transfer data from an ERP system to a bank, bypassing the ERP vendor’s $50,000 per year API licensing model and executing the required workflow with approximately eight hours of labor. This case shows how AI is already enabling both operational cost reduction and workflow acceleration, but only when organizations are able to clearly define outcomes and trust new toolsets over legacy infrastructure. The shift is confirmed by observable adoption among some industrial and B2B clients, even as highly regulated sectors include strict no-AI clauses in contracts. The episode also surfaces secondary pressures such as resistance within higher education and government to AI adoption, citing explicit prohibitions in master service agreements. Despite this, organizations focused on increasing workflow velocity are expressing demand for AI-driven automation, highlighting a growing fragmentation in market readiness and adoption strategies. The ongoing reduction in reliance on software interfaces is paralleled by a convergence of roles such as account management, support, and delivery, which further impacts staffing models and operational expectations. For MSPs and IT leaders, these shifts increase the need for robust governance frameworks and risk evaluation when implementing AI. The rapid obsolescence of some technical roles, combined with accelerated depreciation of legacy systems, presents tradeoffs in investment and resource allocation. Providers will need to revisit hiring priorities—focusing less on technical troubleshooting and more on problem scoping, communication, and business analysis. The presence of complex client requirements and explicit contract exclusions of AI further complicate operational planning, reinforcing the need for accountable transition strategies and mature compliance safeguards. Supported by:Zero NetworksHaloPSAScalePad 💼 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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Why Remediation Capacity, Not Detection, Now Defines MSP Accountability
Apr 1000:12:12Tap to summarizeThe episode identifies a structural shift in the MSP business model: security is no longer a discrete service or line item but has become the organizing principle for operations and accountability. This is driven by an industry-wide trend toward increased automation in both attack and defense, as well as a shift in liability and accountability from vendors to the MSPs themselves. Companies such as Acronis and Anthropic are highlighted for introducing tools that increase the rate and automation of threat discovery, while research and market analysis by Watchguard and Jay McBain indicate that the capacity to remediate, rather than discover, security threats now forms the operational bottleneck. The most consequential development referenced is the acceleration of security automation and vulnerability discovery, specifically through Anthropic's Project Glasswing and Watchguard’s reporting of a 1,500% surge in new endpoint malware variants. Anthropic’s approach—limiting broad release of its model due to potential misuse for rapid exploitation—was supported by partnerships with cloud and technology firms like AWS, Apple, Google, and Microsoft, backed by up to $100 million in usage credits. Watchguard’s data demonstrates that while threat discovery is increasing, the rate of remediation has not kept pace, creating a supply-demand imbalance in skilled security operations. Further reinforcing this trend, Acronis has promoted a 24x7x365 Managed Detection and Response (MDR) tool positioned to let MSPs deliver always-on monitoring without managing a full security operations center. Meanwhile, broader channel and delivery ecosystem analysis by Jay McBain emphasizes that partners, rather than platform vendors, bear primary responsibility for steady-state customer environments. This confluence of developments shifts the value—and the risk—onto the operational capabilities and governance structures of MSPs. Other referenced solutions, such as Zero Networks’ microsegmentation, underscore that containing damage, not just preventing access, is a new business imperative. The operational implication for MSPs and IT providers is a shift from measuring security by tools deployed to measuring and pricing security by demonstrated remediation throughput. Service contracts will need to specify not only what solutions are deployed, but also explicit commitments on response times, closure rates, and SLA-backed operating motions. A lack of clear remediation commitments raises unpriced liability as discovery rates outpace closure capacity. Providers are encouraged to separate vulnerability discovery reporting from remediation progress, build reporting layers that highlight closure rates, and reconsider flat-fee models that do not account for increased operational workloads and accountability risks. 00:00 Closure Is Finite 04:10 Close the Gap 06:32 Govern or Absorb 08:57 Why Do We Care? Supported by: Zero Networks 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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AI Monetization Remains Out of Reach for Most MSPs, Say GTIA’s Carolyn April and CompTIA’s Seth Robinson
Apr 900:35:12Tap to summarizeThe central structural shift examined is the widening disconnect between the vendor-driven narrative of rapid AI monetization and the operational reality faced by MSPs, as exposed by recent research from GTIA and CompTIA. Despite pervasive messaging from technology vendors that AI features are ready for seamless integration and immediate profitability, survey data indicates that most MSPs remain in early adoption stages, lack tangible processes to operationalize AI, and are stymied by workforce and workflow constraints. Supporting evidence is drawn from CompTIA’s data showing that 70% of businesses are still in early AI adoption stages, and only 55% of MSPs expect to turn a profit on AI initiatives in the near term—up from 34%, but well below vendor promises. The majority of current AI activity remains at the individual user level rather than embedded in business-wide workflows, restricting quantifiable ROI and limiting the visibility of productivity gains. Both Speaker B and Speaker C emphasized that most MSPs do not yet have the organizational capability or maturity to move beyond experimentation to operational deployment and monetization. Related developments further illustrate this operational gap. Research cited by Speaker B highlights that only a subset of larger MSPs with more resources have been able to achieve early success with AI, while most are still grappling with process integration, pricing strategies, and talent acquisition. Both GTIA and CompTIA reports suggest that optimism among firms about AI’s potential is running ahead of genuine structural change, with workforce shortages, undefined internal governance, and difficulties in business model adaptation acting as durable barriers. Market sentiment remains positive, but actual organizational transition lags significantly, especially among smaller MSPs. Operationally, this environment introduces heightened risk for MSPs who overcommit on vendor promises without aligning internal processes, workforce strategy, and governance. Dependencies on vendor-supplied AI tools expose firms to pricing uncertainty and potential margin compression, especially as clients begin questioning the value proposition when human roles are replaced by automation. Without formalized internal AI governance and skill development, most MSPs face mounting challenges in demonstrating measurable ROI, adapting delivery models, and sustaining service margins. The implication for decision-makers is the need for prudent, phased adoption—prioritizing internal process maturity and realistic expectations over rapid adoption in response to vendor pressure. Supported by: CometBackUpTimeZest 💼 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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