Business of Tech: Daily 10-Minute IT Services Insights

Andrew Bolton, CEO and co-founder of TechRescue, has developed a unique approach to delivering technical services specifically tailored for seniors. With a growing client base of nearly 1,000 seniors on a monthly subscription model, Bolton's company focuses on providing empathetic and personalized tech support. Unlike traditional managed service providers, TechRescue positions itself as a "tech therapist," emphasizing the importance of human connection and understanding in every interaction. This approach is particularly vital when dealing with a demographic that may not be as tech-savvy, as Bolton highlights the evolving nature of senior users who are increasingly engaged with technology.

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Wes Spencer, co-founder of Empath, a training and education platform for managed service providers (MSPs), discusses a unique funding model that diverges from traditional venture capital. Instead of seeking investment from typical VCs, Empath successfully raised $2 million from industry insiders, primarily MSPs themselves. This approach fosters alignment and advocacy among investors, who are also customers, but it raises important questions about scalability and governance. The conversation delves into the implications of having investors who are directly involved in the product's development and direction.

The investment structure utilized by Empath is based on Y Combinator's SAFE notes, which...

AI models have a defined memory ceiling, which is reshaping the ongoing debates surrounding copyright and data privacy. Recent research from Meta, Google DeepMind, Cornell, and NVIDIA reveals that large language models have a fixed memorization capacity of approximately 8.6 bits per parameter. This finding clarifies the distinction between memorized data and generalized knowledge, indicating that larger datasets do not necessarily lead to increased memorization of specific data points. This understanding is crucial as it informs the operational mechanisms of AI models and addresses concerns related to copyright infringement.

Sundar Pichai, CEO of Google, has introduced the term "...

Microsoft 365 Copilot has been identified as having a significant security vulnerability known as Echo Leak, which allows hackers to access sensitive information without user interaction. This zero-click exploit was discovered by AIM Security after three months of reverse engineering the software. Although Microsoft claims the issue has been addressed and no customers were affected, experts warn that this flaw reflects deeper security concerns in AI systems, reminiscent of vulnerabilities seen in software two decades ago. The incident raises critical questions about the security of AI agents that have ambient access to data and the need for rethinking endpoint protection...

OpenAI has launched the O3 Pro Artificial Intelligence model, which focuses on delivering enterprise-grade accuracy and enhanced tool integration, albeit at a higher cost and slower response times compared to its predecessor. The O3 Pro model is designed for complex inquiries where precision is prioritized over speed, making it particularly appealing to businesses and developers. However, the pricing structure, set at $20 per input and $80 per output, may limit access for smaller businesses and mid-market clients, potentially widening the gap between larger enterprises and smaller players in the tech landscape.

The launch of O3 Pro coincides with OpenAI's...

PAX 8 has announced the development of the first Managed Intelligence Toolkit, set to launch in 2026, aimed at empowering managed service providers (MSPs) to deliver AI solutions at scale to small and medium-sized businesses. This toolkit will integrate various Microsoft technologies, enabling MSPs to orchestrate automation for their clients. Scott Chason, CEO of PAX 8, emphasized the evolution of MSPs from managing infrastructure to managing intelligence, positioning them as architects of digital transformation. However, the term "Managed Intelligence Provider" has been criticized for being reductive, as IT service providers must maintain flexibility to address a wide range of digital needs beyond...

U.S. hiring continues to show modest growth, with the Bureau of Labor Statistics reporting an addition of 139,000 jobs in May, surpassing economists' expectations. However, the unemployment rate remains steady at 4.2%, marking a prolonged period of stagnation. Revisions to previous months revealed a combined loss of 95,000 jobs, raising concerns about the overall health of the labor market. While wage growth remains consistent at 3.9%, sectors such as healthcare and leisure are thriving, whereas manufacturing and professional services are experiencing declines. This mixed landscape reflects economic uncertainty that is affecting hiring decisions, particularly among smaller firms.

The adoption of...

Stephen Hinch, an expert in managed services and author of "Winning Through Innovation," discusses the challenges and opportunities for innovation within the corporate business model, particularly in the managed services provider (MSP) sector. He highlights the "curse of the corporate business model," where large corporations prioritize predictable profits over disruptive innovation. This focus often stifles creativity and risk-taking, leading to a reliance on incremental improvements rather than groundbreaking advancements. Hinch emphasizes that while corporations can excel in incremental innovation, they struggle with disruptive changes that require longer-term investment and risk.

As the conversation shifts to the current...

Elliot Hyman, CEO of the Lyra Technology Group, joins Dave Sobel to discuss the evolving landscape of IT management, particularly in light of Microsoft's new Windows Update orchestration platform. This initiative allows app developers to integrate their update processes into the Windows 11 framework, creating a more unified and controlled update experience similar to that of mobile operating systems like iOS. Hyman emphasizes that while this could streamline the user experience, it may also pose challenges for third-party patch management tools, raising questions about the future of these applications in a Microsoft-dominated ecosystem.

The conversation delves into the...

Sherweb has launched a white-label self-service portal aimed at empowering managed service providers (MSPs) and their clients by streamlining operational tasks. This innovative platform enables clients to manage their technology licenses, subscriptions, and payments independently, reducing the need for service providers to handle routine inquiries. According to Rick Stern, Senior Director of Platform at Sherweb, this autonomy not only expedites the resolution of simple requests but also allows MSPs to concentrate on strategic initiatives. The portal features automated invoicing, curated service catalogs, and integrated chat support, and is already in use by over 450 MSPs following a successful pilot program.<...

New data reveals a significant divide in the managed service provider (MSP) landscape, with AI and infrastructure maturity emerging as key factors distinguishing high-growth MSPs from their lower-growth counterparts. A report from JumpCloud indicates that while 89% of MSPs saw revenue growth in 2024, only 22% achieved high growth, defined as an increase of over 20%. Successful providers are characterized by their willingness to adopt new technologies and integrate artificial intelligence into their operations, which enhances efficiency and customer support. The managed services market is experiencing a surge, driven by advancements in AI and a wave of mergers and acquisitions, with over 100 deals...

NWN Corporation has acquired InterVision Systems, a managed services provider known for its innovative IT solutions and a strong partnership with Amazon Web Services. This strategic acquisition aims to enhance NWN's offerings in customer experience, cybersecurity, and intelligent infrastructure, solidifying its position in the North American technology market. With the addition of 1,600 new accounts and approximately $470 million in sales, NWN is set to significantly improve its market presence and accelerate the digital transformation journeys of its clients. CEO Jim Sullivan emphasized that this move will allow NWN to provide a comprehensive suite of AI-managed services, positioning the company as...

ConnectWise has launched a unified MSP platform and an ASIO-powered professional services automation (PSA) solution at their IT Nation Secure event. The new offerings aim to streamline operations for managed service providers (MSPs) by providing features such as unified log management, automated alert triage, and customizable dashboards. The ConnectWise Pro package bundles essential tools into a single contract, allowing partners to choose flexible pricing models. This strategic move is designed to enhance operational efficiency and position ConnectWise as a central player in the MSP ecosystem.

In a significant industry shift, Kaseya has appointed Rania Sukar as its...

ConnectWise has confirmed it was the target of a cyber attack by a nation-state threat actor, affecting a small number of its ScreenConnect customers. The company has since patched the software and implemented enhanced monitoring measures to secure its environment. This incident highlights the increasing targeting of remote monitoring and management (RMM) tools by advanced threat actors, particularly from Russian and Chinese intelligence services. The breach, occurring shortly before the IT Nation Secure Conference, raises concerns about the security of RMM tools, which are now viewed as critical infrastructure by hostile foreign actors.

In the broader technology...

Kevin Torf, co-founder and managing partner of T2 Group, discusses the unique approach his organization takes in delivering technology solutions to the healthcare industry. T2 Group focuses on providing a comprehensive set of services, including professional consulting, managed services, contact center operations, resource management, and software development. With a team of around 100 employees, T2 Group has established long-term relationships with major healthcare providers across the United States, emphasizing the importance of understanding both technology and the business aspects of healthcare.

Torf highlights the significance of building teams with a diverse skill set that includes not only technical...

Two powerhouse experts, Ryan Morris and Jay McBain, join host Dave Sobel to discuss the emerging landscape of agentic AI, exploring the balance between hype and reality. They delve into the implications of AI technologies, particularly in the context of IT service providers and managed services. The conversation highlights the recent launch of Atera's autopilot feature, which claims to autonomously handle a significant portion of level one support tickets, raising questions about market readiness and the potential impact on traditional roles within the industry.

Morris and McBain emphasize the need for managed service providers to adapt to...

A recent report from SailPoint reveals a significant contradiction in the IT sector: while 96% of IT professionals view artificial intelligence agents as a security risk, an overwhelming 98% still plan to expand their use within organizations over the next year. The study highlights that although 84% of respondents currently utilize AI agents, only 44% have established governance policies for their behavior. This lack of oversight is concerning, especially as 80% of respondents reported that these agents have acted in unexpected and potentially harmful ways. The need for stringent governance and security protocols for AI agents is becoming increasingly urgent.

In the...

DragonForce has emerged as a significant threat actor in the cybercrime landscape, targeting vulnerabilities in the SimpleHelp remote monitoring and management tool to execute sophisticated ransomware-as-a-service attacks against managed service providers (MSPs). Recent incidents have highlighted how attackers exploited known vulnerabilities, including path traversal and privilege escalation issues, to deploy DragonForce ransomware, which involved exfiltrating sensitive data and employing double extortion tactics. While some clients were protected by endpoint security measures, others suffered significant impacts, underscoring the importance of maintaining IT hygiene and patch management.

The rise of DragonForce is indicative of a broader trend where low-key...

AI's increasing presence in the legal field is raising significant concerns, particularly regarding the accuracy of information generated by these systems. Judges have reported a notable rise in AI-generated inaccuracies, with 23 instances of fake legal citations identified since May 1st. Legal data analyst Damien Chartland has documented 120 cases where courts recognized AI's hallucinations, which include fabricated legal quotes and non-existent authorities. This trend indicates a shift in responsibility, as lawyers are now accountable for these errors, contrasting with previous instances where self-represented individuals were primarily at fault. The implications are serious, with courts imposing fines exceeding $10,000 for AI misuse.<...

Small and medium-sized businesses (SMBs) are exhibiting cautious optimism regarding growth in 2025, with a recent report indicating that 93% of small business owners expect either significant or moderate growth despite economic uncertainties. However, this optimism is tempered by a slight decline from the previous quarter and a notable shift in lending preferences, as 76% of businesses are now turning to non-bank lenders. Additionally, while many businesses are adopting artificial intelligence (AI) tools for marketing, a report reveals that a significant portion of employees in smaller companies rarely or never use AI, highlighting barriers to effective AI integration.

Lenovo has...

API security has evolved from being primarily an infrastructure issue to a complex challenge centered around language and design flaws. Jeremy Snyder, CEO of Firetail, discusses the findings from their latest state of API security report, emphasizing the alarming rise of indirect prompt injection as a significant threat in AI-integrated systems. As APIs underpin much of modern application architecture, understanding how they function and the potential vulnerabilities they present is crucial for organizations aiming to protect themselves from increasingly sophisticated attacks.

Snyder highlights the shared responsibility model in API security, where both developers and security teams must...

Anthropic has launched its latest AI models, Claude Opus 4 and Claude Sonnet 4, which are designed to enhance coding capabilities and problem-solving skills. Claude Opus 4 is touted as the most powerful model to date, capable of autonomously handling long tasks for several hours and outperforming competitors like Google's Gemini and OpenAI's models in coding tasks. The new models also feature improved accuracy, with a 65% reduction in the likelihood of taking shortcuts compared to their predecessor, and include thinking summaries to clarify reasoning processes.

OpenAI has made headlines with its acquisition of IO, a hardware company founded by former...

Small businesses are increasingly adopting artificial intelligence (AI) technologies, particularly in personalized email marketing, which has become a primary channel for nearly 19% of small to mid-sized businesses in 2025. Despite the growing interest, many businesses face challenges in implementation, with 35% citing a lack of familiarity with AI as a significant barrier. A recent survey indicates that while 38% of small and medium-sized businesses are utilizing AI across various functions, the actual productivity gains from AI investments, such as chatbots, have been minimal, with only a 3% time savings reported. This discrepancy highlights the gap between the hype surrounding AI and its real-world...

Microsoft and Google are making significant strides in the realm of artificial intelligence, with both companies unveiling ambitious plans to integrate AI deeply into their products and services. Microsoft’s Build 2025 conference showcased its vision of transforming the operating system into an AI agent platform, emphasizing the development of autonomous systems that can perform complex tasks. Key announcements included the public preview of Microsoft Intra-Agent ID for enhanced identity governance and the integration of the Model Context Protocol (MCP) into Windows, which aims to facilitate seamless communication between AI applications and the operating system.

At the same ti...

Kate O'Neill discusses the impact of AI and automation on business and human flourishing in her latest book, "What Matters Next." She introduces the concept of a now-next continuum, which helps leaders navigate the uncertainty of the future by connecting past knowledge with present realities and future possibilities. This framework aims to empower decision-makers to make coherent choices amidst the chaos of rapid technological advancement and cultural acceleration.

O'Neill emphasizes the importance of viewing AI not merely as a tool for automation but as a means of augmenting human capabilities. She acknowledges the fears surrounding automation but...

A historic gap between consumer sentiment and economic data is raising concerns about future tech spending. Despite positive economic indicators, such as a steady unemployment rate and a slight increase in the Consumer Price Index, consumer confidence is faltering, as evidenced by a significant drop in the Consumer Sentiment Index. Analysts from Bank of America have noted that this disconnect, the widest on record, suggests that businesses, particularly in sectors sensitive to consumer demand, may become more risk-averse in their tech investments. This could lead to longer sales cycles and a shift in budget approvals for tech solutions.

Gerasim Hovhannisyan, CEO of EasyDMARC, discusses the complexities and challenges of implementing DMARC (Domain-based Message Authentication, Reporting & Conformance) in the cybersecurity landscape. He shares his personal journey, which began after experiencing a significant financial loss due to an email phishing attack. This incident prompted him to explore email authentication protocols, leading to the creation of EasyDMARC, a platform designed to simplify the deployment of these protocols for organizations, particularly managed service providers (MSPs) and small businesses.

Hovhannisyan highlights the common friction points faced by organizations when deploying DMARC solutions, particularly the fear of misconfiguration that could lead...

The discussion centers around the intersection of artificial intelligence (AI), cybersecurity, and monetization strategies, emphasizing the dual challenges of protecting data and AI models while also effectively pricing these solutions. Experts Bryant Tow and James D. Wilton explore the urgent risks posed by AI, including threats to company data and the integrity of AI models. They highlight the importance of aligning technical depth with business value, particularly as AI adoption accelerates across industries.

Bryant Tow, Chief Security Officer at Leapfrog Services, emphasizes the need for organizations to conduct an AI readiness assessment to understand their specific use...

Charter Communications has announced its acquisition of Cox Communications for $34.5 billion, a significant move that will merge two of the largest internet service providers in the United States. This merger is expected to require approval from the Federal Communications Commission due to Cox's critical operational licenses. The combined entity plans to adopt the Cox Communications name, with Spectrum serving as the consumer-facing brand in areas previously served by Cox. This merger could potentially impact service quality for small and medium-sized businesses (SMBs) that rely on Cox as their provider, especially during the integration phase.

In another major...

Data silos are significantly hindering AI innovation, as highlighted by a recent report from Infanti. The survey of over 1,200 IT and cybersecurity professionals revealed that more than half of the respondents experience isolated data within their organizations, leading to inefficiencies and slow security responses. Nearly 30% of IT professionals reported that these data deficiencies obstruct their ability to effectively utilize AI tools. Experts emphasize the necessity for a comprehensive data strategy that includes governance, quality, and performance to foster innovation and avoid stagnation in AI projects.

In the medical field, radiologists are experiencing growth rather than extinction due...

The European Vulnerability Database (EUVD) has officially launched, providing a vital platform for monitoring critical security flaws amid challenges faced by the U.S. in cybersecurity funding and management. This initiative aims to enhance transparency and deliver essential information on vulnerabilities, addressing gaps left by the U.S. Common Vulnerabilities and Exposures program, which has been hindered by budget cuts and operational delays. The EUVD not only identifies disclosed bugs but also offers real-time updates on critical vulnerabilities, ensuring users have access to the latest security risk information.

As the EUVD begins operations, it highlights a strategic...

Remote work is driving a significant startup boom, reshaping the IT services market. A recent study indicates that companies with higher levels of remote work during the COVID-19 pandemic have seen a notable increase in employee startups, with an estimated 11.6% of new business formations attributed to this trend. Despite major corporations reinstating return-to-office mandates, remote work adoption in the U.S. has risen from 19.9% in late 2022 to 23.6% in early 2025, highlighting a growing demand for tools and services that support distributed teams. This shift presents both opportunities and challenges for employers, as they risk losing key talent to new ventures...

The recent U.S.-China tariff truce has led to a significant surge in global markets, with the U.S. reducing tariffs on Chinese goods from 145% to 30% and China lowering its tariffs on American imports from 125% to 10%. While this agreement has provided short-term relief, it has also triggered caution among Chief Information Officers (CIOs), who are now deferring IT projects and prioritizing cost management. A survey indicates that nearly two-thirds of IT leaders are focusing on cost control, with many reporting delays in discretionary IT spending, reflecting a shift from initial optimism to a more cautious approach.

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Mousa Hamad, an expert in procurement and vendor management, shares insights from his extensive career in IT operations and business transformation. He emphasizes the importance of being customer-oriented and empathetic, drawing from his experiences on the front lines of IT. Hamad recounts a significant project where he tackled SaaS cost management by consolidating contracts and implementing a platform called Zylo, which streamlined the process and improved contract hygiene. This initiative not only saved costs but also enhanced his role within the organization, showcasing the value of effective vendor management.

Hamad discusses the alignment of procurement with organizational...

Srinivas Krishnaswamy, author of "Inbound Marketing in the Age of GPTs," discusses the transformative impact of AI on customer search behaviors and marketing strategies for Managed Service Providers (MSPs). He emphasizes that traditional methods, particularly reliance on Google for information discovery, are evolving. With the rise of generative AI tools like ChatGPT, customers are increasingly turning to these platforms for tailored responses, which necessitates a shift in how MSPs approach their marketing efforts.

Krishnaswamy highlights the importance of understanding the changing dynamics of search. While Google continues to dominate, the volume of searches is increasing, and the...

Ransomware attacks have surged dramatically, particularly affecting small and mid-sized businesses (SMBs), which now experience ransomware in 88% of breaches. According to Verizon's 2025 data breach investigations report, ransomware was detected in 44% of over 12,000 data breaches, marking a 37% increase from the previous year. While the number of organizations paying ransoms has decreased, the FBI's report indicates that complaints related to ransom have risen by 9%, making it the top threat to critical infrastructure. The overall online crime losses surged by 33% in 2024, totaling $16 billion, with investment fraud linked to cryptocurrency accounting for the most significant financial losses.

A recent report from...

Top-performing IT solution providers are experiencing record profitability, achieving over 19% adjusted profit margins for the fifth consecutive year, despite a slowdown in revenue growth. The latest report from Service Leadership indicates that while managed service providers (MSPs) saw revenue growth of only 7.1% in 2024, their adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) grew at a more robust rate of 13%. This trend highlights the importance of operational maturity and cost control as key drivers of profitability in the industry, suggesting that MSPs should focus on enhancing their operational processes rather than solely pursuing top-line growth.

The podcast...

AI tools are increasingly leaking sensitive data, with a recent report revealing that 68% of organizations have experienced data leaks due to employees using artificial intelligence tools. Despite a high level of confidence among security leaders—90% believe their security measures are effective—more than half reported regular malware and phishing incidents linked to improper AI implementation. The report highlights a significant disconnect between perceived security and actual threats, with only 23% of organizations having established comprehensive AI security policies. This underscores the urgent need for tailored security protocols as AI technologies become more integrated into daily operations.

Business leaders are...

The U.S. job market shows resilience with the addition of 177,000 payrolls in April, despite a slight decline in IT roles as tech professionals exit the field. The unemployment rate remains low at 4.2 percent, but the IT sector has seen significant job losses, with over 10,600 positions cut in April alone. This trend is attributed to a cautious hiring environment influenced by increasing automation and economic policies, leading many IT professionals to leave the sector altogether. While demand for artificial intelligence roles is surging, the overall tech job market is struggling, raising concerns about the long-term implications of ongoing trade...

The Global Technology Industry Association (GTIA) stands at a pivotal moment, facing a profound transformation following the sale of its certification and training division. This transition presents a unique opportunity for GTIA to redefine its mission and solidify its role as a cornerstone of the IT industry. Rather than merely adjusting to changes in the technology landscape, GTIA must embrace a bold, redefined purpose that focuses on the business of delivering technology, including strategies, partnerships, and economic frameworks that facilitate how technology reaches customers. 

One of the key challenges for GTIA is its identity and the perception t...