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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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The episode identifies a core structural shift in the managed services industry: the decoupling of service measurement from observable work due to the adoption of autonomous service desk technologies. This shift is driven by the introduction of automation platforms—such as Atera’s Robin, Acronis AI Service Desk, and NinjaOne’s endpoint automations—that eliminate or obscure traditional service tickets, shifting operational baselines and the metrics used for client billing and value demonstration. Evidence of this shift includes Atera guaranteeing that within 90 days, its Robin system will autonomously resolve half of Tier 1 and complex Tier 2 tickets, enforced via commercial contract terms. The company builds baselines by requiring six months of client ticket history before implementation. Supporting data from Channel EDE and AT&T show that automation can suppress visible ticket volume while inflating claims of efficiency and avoided incidents, independent of provider-side measurement. According to Dave Sobel, AT&T tracked autonomous incident handling since 2018, but most MSPs lack comparable historical data. Further developments reinforce this transition: NinjaOne integrates with ServiceNow to create incidents without human intervention, while Ingram Micro channel feedback observes partners aiming to increase business without staff growth. Broader labor market data and user sentiment surveys reveal that AI-backed automation does not show aggregate productivity gains (Stanford Economic Policy Institute) and is generally viewed with skepticism: Gallup and Apistevist data highlight declining confidence in corporate AI deployments and increased worker nostalgia for pre-automation workflows. The operational impact for MSPs centers on data ownership, measurement accountability, and renewal risk. As traditional records like tickets are eliminated or fragmented, providers who lack their own carefully preserved baselines may find themselves forced to rely on vendor-generated claims for demonstrating avoided work or cost savings. This creates exposure to contract risk, compromised pricing leverage, and governance complexity—especially if ticket-level detail, taxonomy, or supporting operational notes are lost in platform migrations or poorly configured retention policies. According to Dave Sobel, preparing by exporting comprehensive ticket histories, freezing operational taxonomies, and independently counting non-ticket sources of demand are now urgent requirements to maintain accountability and defensible value in future client negotiations. 00:00 The Ticket Is Disappearing 03:45 You Can't Invoice an Absence 07:20 The Client Already Stopped Believing 11:18 Why Do We Care? Supported by: ScalePad 💼 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
The central structural shift addressed is the fracture of the longstanding per-user, per-month MSP pricing model due to AI-enabled consumption-based (tokenized) billing, which introduces variable costs previously absent from MSP contracts. This shift is being reinforced by vendor strategies from firms such as Microsoft, Atera, ConnectWise, N-able, and Pax8, each proposing different mechanisms for channel partners to integrate and manage AI costs and capabilities. Recent research from Omnia, highlighted by Jessica Davis, underscores the pace and fragmentation of this evolution, creating new exposure for MSPs to vendor-driven pricing and value capture. Data from an Omnia poll of 255 MSPs found 40% are maintaining traditional per-user pricing, while 60% are reevaluating or transitioning toward hybrid, outcome-based, or true consumption models. Business of Tech research shows that two-thirds of MSPs have not referenced AI at all in their customer-facing positioning, and those that do overwhelmingly reference Microsoft as their AI provider. According to Jessica Davis, much of the 40% maintaining legacy pricing may not be doing so out of clear strategy or discipline, but because they have yet to encounter the practical or financial impacts of AI usage patterns. Secondary developments discussed include vendor-driven channel consolidation in the form of proprietary control planes: Kaseya, ConnectWise, N-able, and Pax8 are all positioning their platforms as the central operational layer for AI services, but with divergent models—ranging from bundled internal use to open orchestration. Dave Sobel and Jessica Davis note that this fragmentation and experimentation by vendors creates substantial complexity for MSPs, who face real risk of shifting from managed service models to a lower-margin reseller role, particularly as vendors seek to capture value through consumption pricing. Additionally, the rapid pace of AI tool development is enabling some MSPs, particularly advanced or less-regulated firms, to bypass vendors and build custom integrations or internal automations. For operators, the practical implications are increased operational risk and pricing uncertainty, coupled with the challenge of balancing internal efficiency gains against eventual client demand for AI-driven services. Vendor dependency is deepening as MSPs must choose whether to commit to a control plane and cede elements of value and data custody, or attempt to differentiate through custom service layers. The most immediate risk is margin compression from ill-managed or misaligned pricing models—a threat compounded if MSPs fail to map their AI cost and value flows. According to Jessica Davis, MSPs who closely monitor their actual AI-related costs and value delivered, rather than reacting prematurely or simply holding the line, will be better positioned to adapt to ongoing changes in both technology and vendor strategy. Supported by: Pax8Guardz 💼 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.business
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<
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
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
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
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</
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:/
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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