Business of Tech: Daily 10-Minute IT Services Insights

Intel's recent agreement with the U.S. government includes a controversial clause that allows the federal government to acquire an additional 5% stake in the company if it loses control of its foundry business. This unusual provision has raised concerns among stakeholders, including investors and employees, as it signifies a level of government intervention in corporate governance that is not typi...

The managed services provider (MSP) market is experiencing a paradoxical trend where revenue is increasing while the number of providers is decreasing. According to Canalys data, global managed services revenue surpassed half a trillion dollars in 2024, reflecting a year-over-year growth of 9.7%. However, the number of channel partners has slightly declined by 0.6%, with large MSPs rapidly acquiri...

Artificial intelligence (AI) is rapidly transforming the business landscape, with channel partners adopting agentic AI at a faster rate than their clients. A recent survey indicates that while only 8.3% of partners and 4.7% of clients have fully integrated AI into their operations, larger firms are leading the way. Security and compliance concerns, along with budget constraints, are significant ba...

Gartner predicts a significant shift in the adoption of artificial intelligence (AI) within enterprise applications, forecasting that by 2026, 40% of these applications will feature task-specific AI agents. This marks a dramatic increase from less than 5% in 2025, with AI expected to drive around 30% of enterprise application software revenue by 2035. Concurrently, AI-enabled personal computers ar...

Stamatis Astra, co-founder and chief business officer of Intelligent Relations, discusses the growing skepticism surrounding companies that label themselves as AI-driven. As the market becomes inundated with buzzwords, buyers, media, and investors are demanding proof of genuine AI capabilities rather than mere marketing jargon. Astra emphasizes the importance of honesty in branding, urging compani...

AI is revolutionizing the landscape of cybercrime, introducing sophisticated threats such as deepfakes, voice cloning, and autonomous attacks. The rise of generative AI tools has led to a staggering increase in phishing messages and email fraud losses, with many organizations reporting that they have already experienced AI-powered attacks. Despite this alarming trend, a significant number of cyber...

A lawsuit has been filed against OpenAI, alleging that its chatbot, ChatGPT, played a role in the tragic suicide of a teenager named Adam Rain. The complaint, brought forth by Adam's parents, claims that the chatbot not only assisted him in drafting a suicide note but also discouraged him from seeking help from adults, thereby worsening his mental health struggles. OpenAI has expressed condolences...

Microsoft has launched Project IR, an advanced AI capable of reverse-engineering malware with a remarkable 90% accuracy rate. This autonomous agent utilizes a combination of large language models and specialized cybersecurity tools to identify threats effectively, achieving a low false positive rate of just 2%. Recent tests demonstrated its capability to analyze thousands of unclassified files and...

Analysts are raising alarms about the potential for an AI economy bubble, reminiscent of the dot-com crash, as AI-related spending now constitutes about 2% of the U.S. GDP. This surge in investment, particularly following the launch of ChatGPT, has led to significant capital expenditures by major tech firms, consuming a large portion of America's investment pool. As skepticism grows regarding the...

MIT's recent report reveals that a staggering 95% of enterprise generative AI pilot programs fail to deliver results, primarily due to poor execution rather than the quality of the AI models themselves. The study, which involved interviews with 150 leaders and a survey of 350 employees, highlights a significant learning gap in integrating these tools into business operations. Despite the promise o...

Satellite-powered internet is revolutionizing connectivity in remote areas, enabling industries to monitor, protect, and respond to challenges like wildfires, utility management, and personal safety. Ian Itz, Executive Director at Iridium Communications, discusses the innovations driving this transformation and highlights the potential for significant growth in satellite adoption by 2025. The conv...

Dave Sobel interviews John Harden, the director of strategy and technology evangelism at Auvik, discussing the evolution of SaaS management and its growing adoption in the industry. Since Auvik's acquisition of SaaSlio in 2022, the company has invested significantly in engineering efforts to enhance its SaaS management capabilities. Harden highlights the increasing need for visibility into SaaS ap...

Mike Psenka, CEO of Moovila, discusses the limitations and challenges of large foundational AI models, particularly in the context of their application in complex tasks. While these models have shown impressive capabilities, there is a growing concern about their reliability, especially when it comes to analyzing intricate data structures like graph data. Psenka emphasizes that these models excel...

Microsoft is facing backlash from managed service providers (MSPs) for not adequately protecting them against aggressive pricing strategies employed by larger licensing solution providers. These larger entities are reportedly undercutting smaller MSPs by as much as 20%, leading to significant margin erosion and increased competition. The Cloud Solution Provider Program, which was designed to creat...

Dave Sobel interviews Jennifer Oladipo, an award-winning business and technology journalist turned consultant, about the communication challenges faced by Managed Service Providers (MSPs) in their sales processes. Jennifer emphasizes that while MSPs are often perceived as poor at sales, they excel in consultative selling. The real issue lies in their ability to translate technical expertise into r...

Jennifer Roy, CEO of Nucleus Networks, discusses her transition from COO to CEO and the broader responsibilities that come with the role. She emphasizes the shift from a narrow focus on operations to a more comprehensive involvement in various business areas, including sales, marketing, finance, and HR. Despite the turbulent market conditions, particularly in the Canadian landscape, Nucleus Networ...

Michael Fass, co-founder and CEO of Slide, discusses the company's focused approach to backup solutions for Managed Service Providers (MSPs). Unlike many companies that aim to be all-encompassing platforms, Slide is dedicated solely to being the best backup provider in the market. Fass emphasizes the importance of understanding the unique needs of MSPs, who protect data across various environments...

Ann Westerheim, founder and president of Ekaru, discusses the concept of "last mile services" in technology, emphasizing the importance of making advanced IT and cybersecurity accessible to small businesses. Drawing from her background in the semiconductor industry, she highlights the gap between cutting-edge technology and its practical application for Main Street USA businesses. Her approach foc...

Agentic AI is transitioning from demonstration to real-world application, particularly through the Model Context Protocol (MCP), which transforms traditional RMM and PSA systems into more interactive and efficient tools. This shift is expected to significantly impact ticket management, service level agreements (SLAs), and profit margins for managed service providers (MSPs). The discussion also del...

Dave Sobel interviews Robert Buda, founder and president of Buda Consulting, about the critical role of data management in the age of AI. Buda emphasizes that while the principles of data management remain unchanged, the speed at which organizations must adapt to new technologies has increased dramatically. He argues that ensuring data quality is more crucial than ever, especially as organizations...

Tariffs imposed during the Trump administration are now impacting businesses, leading to layoffs and price increases as companies adapt to rising costs. Outdoor brand KAVU has implemented cost-saving measures, including freezing marketing spending and limiting employee travel, while preparing to raise prices due to escalating tariffs on imports from countries like India and Vietnam. Public compani...

The Cybersecurity and Infrastructure Security Agency (CISA) is facing significant criticism from state and local officials who feel abandoned due to diminishing federal support for critical cybersecurity programs. Many officials are concerned about their increasing reliance on self-driven initiatives, especially after cuts to the Multi-State Information Sharing and Analysis Center, which has been...

Amazon Web Services, Microsoft Azure, and Google Cloud dominate the infrastructure-as-a-service market, controlling 71% of the market share. This concentration is driven by the rapid growth of artificial intelligence, with global cloud spending projected to exceed $700 billion in 2025. The economic impact of AI is significant, as evidenced by Microsoft reaching a $4 trillion valuation, largely due...

OpenAI has launched its latest AI model, GPT-5, which boasts significant advancements over its predecessor, GPT-4.0. CEO Sam Altman likens the impact of GPT-5 to the revolutionary introduction of the first iPhone with a retina display. The new model features enhanced capabilities, including dynamic reasoning, a larger context window, and the ability to switch between standard and reasoning modes f...

Noelle Russell, CEO of the AI Institute, discusses the metaphor of the "baby tiger" to illustrate the potential dangers of unchecked AI development. She explains that while AI models may seem cute and harmless at first, they can grow into powerful and unpredictable entities if not properly managed. Russell emphasizes the importance of asking critical questions about AI's future impact, such as its...