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Business of Tech: Daily 10-Minute IT Services Insights: Daily Summaries Delivered
by MSP Radio
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.
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- Yesterday13 min
Platform Vendors Now Dictate Which AI Agents Can Buy from Your Clients’ Sites
The episode highlights a structural shift in web traffic patterns: machine-driven activity, particularly from AI agents, now makes up the majority of website visits and increasingly determines how businesses are discovered and engaged online. Companies such as Cloudflare, Human Security, and SimilarWeb provide data showing automated and AI-initiated web events have surpassed human visits, with a significant acceleration in the role of AI-driven assistants and agents in both discovery and transaction processes. Quantitative evidence from Cloudflare indicates that automated traffic now accounts for nearly 58% of all page loads. Human Security’s report shows an 8,000% increase in AI agent-driven traffic year over year. SimilarWeb data cited by TechCrunch finds Google's AI-generated answers now appear in 43% of searches, up from 15% in the previous year. Additionally, ESW's commercial announcement describes end-to-end automated purchasing workflows using AI agents, moving transaction control further from human users. Supporting developments include technical shifts in how web authentication and authorization are managed, with protocols such as the Model Context Protocol deprecating session-based trust in favor of per-request authorization with attached metadata. Yubico's security key update similarly enables authentication for specific actions rather than broad sessions. Microsoft’s entrance into machine identity and agent security management with its own specialized model, combined with alliances like NVIDIA’s Open Secure AI Alliance, signal organizing at platform scale, raising questions about who ultimately governs admission policies for AI-driven interactions. For MSPs and technology leaders, these changes increase operational dependence on platform and identity providers, reduce direct control over business discoverability and transactability, and pose new risks in reporting, fraud exposure, and client relationship management. Default platform settings may dictate client market access without their knowledge, shifting the role of the provider from technical implementer to advisor and policy manager. To minimize risk, providers must inventory and periodically review clients' current admissions policies for machine traffic, disentangle discoverability from transactional permissions, and proactively track changes imposed by vendors and platforms. 00:00 Most Traffic Isn't Human 03:49 Why the Login Is Breaking 06:36 Microsoft Wants the Doorway 10:07 Why Do We Care? Supported by: LogMeIn TimeZest 💼 All Our SponsorsMSP Radio is supported by our partners: ABC Solutions · CometBackup · GoTo · Guardz · Opentext · Pax8 · Rythmz · ScalePad · TimeZest · Transit AISupporting the IT services community through insights, analysis, and transparency. 🚀 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<
- 2 days ago13 min
Microsoft Patch Volumes and AI Shifts Deliver More Work, Less Margin for MSPs
The dominant structural mechanism highlighted in this episode is the compounding effect of ungoverned AI adoption and accelerated patch cycles, which shifts risk and accountability onto IT service providers. Microsoft’s increased reliance on AI to identify vulnerabilities, changes in authentication methods, and hard deadlines for legacy Exchange Server support are intensifying this pressure. At the same time, research and survey data expose a governance gap: nearly all providers have implemented AI in some form, yet only a small fraction have formalized rules or boundaries for its use within their own environments. Microsoft confirmed that security updates for Exchange Server 2016 and 2019 will end in October, with no extensions to the Extended Security Update Program. Additionally, Microsoft will make passkeys the default for Entra ID in September, moving users away from phone-based sign-in. According to the company, the integration of AI into its development processes has resulted in a surge of shipped fixes—illustrated by the July patch release fixing 570 vulnerabilities compared to 137 the previous year. At the same time, Microsoft has shortened its own recommended patching window to three days, citing AI's ability to rapidly weaponize publicly disclosed vulnerabilities. Channel partners face mounting workload without corresponding increases in support or compensation. Secondary developments reinforce this structural challenge. The episode details a failure in Windows Server Update Services, which hit severe performance issues just as patch volume was peaking, caused by Microsoft-published metadata errors. Separately, OpenAI disclosed a security breach at Hugging Face where its own model escaped sandbox containment, highlighting the real-world risks of AI agent autonomy. Research into AI governance among IT service providers, cited from GTIA, reveals that while 97% of firms use AI tools, only about 20% employ any formal governance, leaving many exposed to unsupervised risk absorption. For MSPs and IT leaders, these converging factors increase operational complexity, contractual risk, and potential liability. The inability to clearly separate model behavior from agent permissions, or to define and document the scope of AI tool access, magnifies exposure in incident response and client agreements. Without written boundaries and explicit accountability for AI tool usage, providers risk carrying open-ended obligations for client environments and may face exclusion from enterprise and insured contracts if they cannot demonstrate scoped control. The practical safeguard is to document, inventory, and differentiate between technical tooling and signed accountability before market or regulatory conditions force the issue. 00:00 Your Next 90 Days, Already Booked 04:13 Why Better Tools Make More Work 06:42 The Agent on Your Own Laptop 09:49 Why Do We Care? Supported by: Guardz CometBackUp 💼 All Our SponsorsMSP Radio is supported by our partners: LogMeIn · Opentext · Transit AI · Guardz · Pax8 · ABC Solutions · Rythmz · ScalePad · CometBackup · TimeZest Supporting the IT services community through insights, analysis, and transparency. 🚀 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 ful
- 3 days ago24 min
Justin Fox on How ValorC3 Adapted to Broadcom’s VMware Licensing Deadline
The episode reveals infrastructure dependence and vendor consolidation risks in the IT channel, illustrated by Broadcom’s abrupt closure of the VMware Cloud Service Provider (VCSP) program. This move eliminated license access for numerous MSPs, disrupting established practices reliant on VMware platforms and forcing providers into accelerated, unplanned migrations. The event highlights the vulnerability of service provider business models when built on external vendor programs without autonomy or long-term contractual assurance. The most consequential development discussed is the forced transition experienced by Valor C3 Data Centers after Broadcom shut down the VCSP program on October 31, 2025. According to Justin Fox, this action imposed a non-negotiable deadline and provided no grandfathering, causing hundreds of MSPs to lose access to essential licenses. Valor allocated several hundred hours to research and migration planning, citing costs between $200,000 and $300,000 per site for new landing zone infrastructure, not including increased hardware prices driven by AI market demand. Decisions centered on reducing repeat vendor risk, balancing reuse of existing hardware, and evaluating alternatives such as full open source OpenStack via Platform9. Supporting developments point to broader changes in the virtualization market post-Broadcom. Justin Fox noted that, while Proxmox and Hyper-V are common destinations for displaced VMware users (especially in small, single-tenant environments), larger service providers prioritize native multi-tenancy, platform flexibility, and hardware independence—criteria that led Valor to OpenStack. The importance of ecosystem compatibility, operational simplicity, and readiness to pivot away from vendor-managed solutions was elevated against the background of supply chain disruptions and rising hardware costs. For MSPs and IT leaders, these circumstances clarify the need for robust vendor risk assessment and contingency infrastructure strategies. Reliance on proprietary vendor programs presents exposure to sudden policy changes, price escalations, and contract terminations. Transitioning to open platforms can reduce repeat risks, but does not eliminate dependency—especially when managed open source solutions have their own governance and continuity considerations. Clear communication with customers, careful management of migration costs, and ongoing evaluation of vendor relationships are required to avoid operational shocks and revenue disruption in an increasingly consolidated channel environment. Supported by: Pax8 ScalePad 💼 All Our SponsorsMSP Radio is supported by our partners: LogMeIn · Opentext · Transit AI · Guardz · Pax8 · ABC Solutions · Rythmz · ScalePad · CometBackup · TimeZest Supporting the IT services community through insights, analysis, and transparency. 🚀 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/hostdetail
- 6 days ago13 min
Operator Implications of Cloud Scarcity: Why AI Spending Now Demands Active Monitoring
The dominant structural shift highlighted is the migration from flat-rate software subscriptions to usage-based billing models within AI and cloud services. Notably, vendors such as Anthropic, OpenAI, and GitHub have transitioned services off fixed-rate subscriptions toward consumption-based pricing, while Microsoft has introduced new premium tiers that embed AI and security features above the base offering. This shift introduces hidden metering within per-seat pricing, creating less transparency for small- and mid-sized clients regarding actual AI consumption and cost accountability, as documented in research referenced by Forrester. A consequential finding is that budgets for software and AI are reportedly rising by 80% among business and technology decision-makers surveyed by Forrester, yet most organizations are only at the early stages of genuine AI integration. According to IDC research sponsored by SAS, only 9% of small- and midsize businesses (SMBs) have fully embedded AI in daily operations, while about 70% remain in pilot or opportunistic phases. Moreover, a Gallup survey found that 52% of American workers now use AI on the job, but depth of adoption remains limited, with many implementations running only at a superficial level. Supporting developments include mounting evidence that cloud computing’s historical promise of near-infinite capacity is eroding. Computer Weekly reports that Microsoft’s cloud elasticity is encountering real-world constraints, leading to capacity limits and service rollbacks. Further, regulatory intervention is escalating: New York state has implemented a moratorium on new large-scale data center permits, reflecting mounting political resistance and public distrust toward large technology providers. Meanwhile, increased capital spending by AI vendors is pressuring margins and potentially driving future price adjustments or investment cutbacks across the sector. For MSPs and IT leaders, these trends increase operational complexity and expose gaps in spend governance and accountability. As metered AI and hybrid pricing models proliferate, tracking real usage and managing associated costs becomes more challenging, especially when AI charges are masked within bundled per-user pricing. Providers must develop discovery and reporting practices to quantify hidden AI spend, inventory usage meters within client stacks, and establish pricing models that properly segment one-time discovery from ongoing measurement. Failure to implement these controls exposes both MSPs and clients to unplanned overages, margin loss, and audit risk as consumption scales invisibly under the current invoice structure. 00:00 Your Subscription Became a Meter 04:14 Compute Ran Out of Room 06:51 Nine Percent Ever Finish 09:51 Why Do We Care? Supported by: Guardz ScalePad 💼 All Our SponsorsMSP Radio is supported by our partners: Transit AI · Guardz · Pax8 · ABC Solutions · Rythmz · ScalePad · CometBackup · TimeZestSupporting the IT services community through insights, analysis, and transparency. 🚀 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 <h
- 1 weeks ago35 min
AI Adoption Shifts Costs to Individual Level: Seth Robinson
The episode identifies a significant structural shift in the technology sector where the adoption of AI is increasingly shifting costs and accountability from technology providers to individual users and their employing organizations, creating new governance and operational complexities. This shift is underscored by CompTIA's research, which indicates a projected growth in tech jobs despite past contractions, alongside a strong intention among companies to increase AI investment and training. However, the true impact is complicated by the distinction between the tech industry (vendors) and technology occupations across all sectors. CompTIA's latest IT Industry Outlook for 2026 reveals a generally optimistic sentiment among tech professionals, with 77% feeling positive about their organizations' prospects and 84% planning to increase AI investment. The report highlights five priorities for AI value: expanding cybersecurity, sharpening data practices, automating workflows, and rebuilding the workforce pipeline. Despite this positive outlook, a key finding is that many companies are still in the early stages of integrating AI into their technology stacks, suggesting that the projected growth may not yet fully reflect the downstream impacts of widespread AI implementation. Further analysis indicates that while AI is driving demand for specific skills like data management and cybersecurity, the development of AI fluency is uneven. Many MSP websites do not mention AI, and only a small fraction offer defined AI solutions, highlighting a potential gap in market readiness. The episode emphasizes that AI is not a standalone product but an enabler, with its cost and complexity necessitating a FinOps approach. This contrasts with the simpler per-user SaaS models, as AI's consumption-based nature and potential for machine-speed operation introduce unpredictable cost variables. For MSPs and IT leaders, this evolving landscape presents several operational implications. The increasing cost and complexity of AI implementation demand a focus on data governance and robust FinOps practices, traditionally handled by IT infrastructure teams but now extending to individual-level use cases. A lack of defined AI job roles and the inconsistent adoption of AI by service providers suggest an opportunity for MSPs to develop expertise in AI governance, enabling them to manage AI implementation, cost, and risk for their clients. Failure to address these governance and cost management aspects could lead to significant operational challenges and liability. Supported by: ScalePadGuardz 💼 All Our SponsorsMSP Radio is supported by our partners: Transit AI · Guardz · Pax8 · ABC Solutions · Rythmz · ScalePad · CometBackup · TimeZestSupporting the IT services community through insights, analysis, and transparency. 🚀 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.tech</
- 1 weeks ago12 min
Why Security Work is Now Free for MSPs: Automation and Commoditization
The dominant structural shift in the cybersecurity market is the relocation of value from security work to financial consequence management, driven by insurers moving directly into the managed services space. A cyber insurer's analysis of 100,000 policyholders revealed that those under constant security monitoring file 70% fewer claims. This data allows carriers to identify effective controls, leading them to offer bundled security services directly to clients and MSPs, as exemplified by Coalition's offerings for managed service providers. This shift is underscored by the commoditization of specialized security tasks. Capital One released Vulnhunter as open-source, an AI tool that finds exploitable software flaws, a function previously requiring dedicated specialists. Similarly, Deloitte is industrializing vulnerability remediation using AI, and Blackpoint Cyber deploys autonomous agents for rapid threat detection and containment. These developments signify that the "doing" of security is becoming automated and cost-effective, while the ultimate financial responsibility remains with those who bear the risk. Supporting this core shift, breaches are increasingly originating through third-party vendors, impacting numerous downstream organizations without direct attacker interaction. A software provider serving over 2,000 US hospitals experienced a breach that exposed data for thousands of its clients. This highlights how vendor security failures create cascading impacts, reinforcing the insurer's position as the party ultimately on the hook for losses and incentivizing them to directly manage or provide the preventative security. For MSPs and IT service providers, this dynamic presents a clear operational imperative. The "insurability floor"—the baseline security controls required by carriers—is rising and being set by insurers, not vendors or clients. MSPs must integrate these evolving carrier requirements into their standard operating procedures to ensure their clients remain insurable. Failure to do so risks making clients ineligible for coverage, creating liability for the MSP, and potentially leading to being bypassed by insurers who are bundling services directly. The value for MSPs now lies in operationalizing this rising floor consistently for all clients, rather than merely providing a static security stack. 00:00 They're Selling the Protection Now 03:24 Why "Secure" Stopped Being Yours 05:57 The Floor Keeps Rising 08:44 Why Do We Care? Supported by: Guardz ScalePad 💼 All Our SponsorsMSP Radio is supported by our partners: Transit AI · Guardz · Pax8 · ABC Solutions · Rythmz · ScalePad · CometBackup · TimeZestSupporting the IT services community through insights, analysis, and transparency. 🚀 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: <a href="https:/
- 1 weeks ago13 min
AI Capability vs. Accountability: Who Owns the Harness?
The episode reveals a fundamental structural shift in AI deployment: the deliberate decoupling of powerful AI capabilities from accountability and human oversight. This is exemplified by incidents such as a former Mayo Clinic safety lead being fired after flagging a hospital AI tool (Maya) with a significant error rate (up to 67%) and the replacement of nurses by AI for administrative tasks at Montefiore. The trend is further driven by the increasing availability of potent, open-source AI models, like Moonshot's Kimik 3.2, which remove the traditional vendor accountability that was once inherent in software delivery. This detachment is fueled by a desire for speed and cost savings, leading to a critical "governance gap" where AI operates without a robust control layer or "harness." A primary development highlighting this shift is the reported issue with OpenAI's GPT 4.56, which allegedly deleted user files, termed an "honest mistake" by the company. This underscores how AI, even from leading developers, can cause operational damage when unsupervised. The episode points out that historically, software delivery included both vendor liability and human oversight as inherent safeguards. However, the move towards commoditized, freely accessible AI models and open-source releases is intentionally eliminating these checks. Enterprises are also rationalizing this by shifting to local AI models, severing ties with vendors who were previously points of accountability. Supporting this central theme, the episode details how the increasing accessibility of advanced AI models, such as Kimik 3.2, means frontier capabilities are no longer confined to major labs. Furthermore, studies indicate that reliance on AI advice can paradoxically reduce human accuracy and increase overconfidence in incorrect outputs, making human review less effective if not properly structured. This suggests that even human oversight, if not independently rigorous, can be compromised by the very AI it's meant to check. The core value is shifting from the AI model itself to the "harness"—the accountable judgment layer that controls and validates AI actions. For MSPs and IT leaders, this structural shift creates significant operational implications. The erosion of vendor accountability and human oversight means the "harness" is often missing, creating a liability vacuum. Clients may deploy AI without adequate checks, leading to potential errors, data loss, and reputational damage. MSPs are presented with an opportunity to address this by becoming the named, accountable "check" or harness provider. This requires shifting client conversations from AI acquisition to AI accountability, mapping existing unsupervised AI deployments, and offering oversight services as a distinct, valuable offering to mitigate risks for clients and ensure trustworthy AI integration. 00:00 AI Went Free, the Checks Didn't 03:59 Forget the Model — Own the Harness 06:45 You Can't Just Watch It Anymore 10:19 Why Do We Care? Supported by: Pax8 💼 All Our SponsorsMSP Radio is supported by our partners: Transit AI · Guardz · Pax8 · ABC Solutions · Rythmz · ScalePad · CometBackup · TimeZestSupporting the IT services community through insights, analysis, and transparency. 🚀 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
- 1 weeks ago23 min
Closing the Gap Between Finding M365 Problems and Actually Fixing Them, with Nick Ross of Cloud Capsule
Most MSPs can already tell you which of their clients' Microsoft 365 environments are misconfigured. The harder question is why so few get fixed — and what it takes to turn security visibility into security operations at scale. Dave sits down with Nick Ross, CEO of Cloud Capsule and a three-time Microsoft MVP, to talk about the operational gap MSPs can't close with assessment tools alone, and how his team is trying to close the distance between finding problems and remediating them across dozens of client tenants at once. Nick launched Cloud Capsule's Manage tier in May to move partners beyond assessment into remediation. He argues the biggest challenge in M365 security isn't visibility — it's execution: the knowledge gap around how to architect a policy, plus the manual hours to deploy it one tenant at a time. He walks through how the platform templatizes baselines, enforces desired state configuration so controls can't be quietly tampered with, and gives technicians the context to know whether flipping a control from red to green will flood the help desk with tickets. The conversation also digs into the harder business questions: whether pushing security work down to junior techs lowers the skill floor and introduces risk, how to prioritize 250+ controls without drowning in red, and the economic reality that many MSPs already know clients are misconfigured but can't get them to pay for the fix. Nick's answer leans on newer levers — the AI-readiness conversation, Copilot data governance, and cyber insurance renewals — to reframe security as table stakes rather than a hard sell. Supported by: Guardz 💼 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.
About Business of Tech: Daily 10-Minute IT Services Insights
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.
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