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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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- Today39 min
All-in-One or Best-of-Breed? The Real Tradeoffs in Your Security
Vendor channel consolidation continues to shape decision-making for MSPs, as the industry evaluates tradeoffs between integrated security stacks and maintaining best-of-breed toolsets. The episode’s discussion centers on the role of platform consolidation, referencing Guardz as an example of a provider leveraging third-party engines like SentinelOne for EDR and Check Point/Avanan for email, shifting focus from proprietary tool development to deep integration and operational unification. This shift reflects broader industry movement away from fragmented tooling toward unified security operations designed specifically for MSP and SMB environments.The primary evidence highlighted is the operational friction and compromises created by legacy all-in-one approaches, which often involved aggregating standalone tools without meaningful integration, leading to inefficiencies and substandard outcomes. Doni Brass detailed Guardz’s initial strategy of building proprietary AV and EDR products, ultimately conceding the inability to match specialist vendors’ effectiveness. The current Guardz model combines licensing and unified management for technologies like SentinelOne, managed through a single point of support and tied together with an identity-centric architecture. The operational benefit, according to Doni Brass, is streamlined onboarding, reduced tool sprawl, and simpler day-to-day management.Supporting developments reinforcing the structural channel consolidation theme include user poll data indicating a split among MSPs: some using under three security vendors, others supporting four to eight, and a minority historically managing as many as 15. The discussion also addresses the risks associated with consolidation—namely increased dependency on single-vendor platforms, reduced flexibility to swap components, and potential compliance shortcomings for high-regulation sectors such as CMMC-restricted defense contractors. Doni Brass acknowledged Gardz’s lack of CMMC certification and identified large, mature MSPs with internal SOCs as less likely to benefit from consolidated stacks unless targeting downmarket segments.For operators, the main implications concern assessment of operational risk, contract liability, and long-term agility. Single-platform solutions can simplify onboarding and management but may introduce lock-in, especially if multi-year contracts are involved. Doni Brass recommended favoring short-term agreements and avoiding exposing specific vendor brands in client-facing deliverables to maintain stack flexibility. Growing reliance on unified platforms demands thorough trial evaluation and continued scrutiny of channel strategy and compliance postures, as vendor pivots and regulatory expectations can change with little notice. Careful governance remains necessary to mitigate both strategic and operational downside.Sponsored by:GuardzBook a Demo: guardz.com/book-a-demo-v5/?utm_source=Davesobel&utm_medium=Webinar&utm_campaign=Davesobel 💼 All Our SponsorsMSP Radio is supported by our partners: ABC Solutions · CometBackup · Guardz · HaloPSA · LogMeIn · Mailprotector · OpenText · Pax8 · Proofpoint · Rythmz · ScalePad · TimeZest · Transit AI · USecureSupporting 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
- Yesterday20 min
Dave Cava on Why Operational Maturity, Not AI, Determines MSP Survival
Margin pressure, driven by a widening profitability gap among MSPs, is the primary structural shift highlighted in this discussion. According to Dave Cava, industry data shows that over half of MSPs operate at less than 5% profitability, while around 27% are running at a loss. Larger and better-funded MSPs are leveraging resources to accelerate adoption of new technologies such as AI, increasing competitive risk for smaller providers that lack operational maturity and financial resilience.The discussion identified concrete data on workforce dynamics and hiring models as significant, with PeopleSharp internal figures revealing a 30-day gap between presenting a hiring candidate and accepted offers, attributed to process inefficiency on the MSP side. Additionally, Dave Cava referenced market research (Saya) showing a jump from 9% to 16% of MSPs struggling to find qualified technicians, despite a labor market some perceive as soft. This further intensifies pressure on mid-sized and smaller MSPs with limited recruiting power, especially as staffing expectations and willingness to work on-site have been drastically altered post-COVID.Secondary developments include the evolving structure of technical teams and career ladders. Traditional L1-to-L3 progression is under scrutiny as automation and AI begin to erode the volume of entry-level roles. While the shift is gradual, Dave Cava noted that "talent factories," or MSPs able to internally develop staff, are increasingly necessary. Process and operational maturity, not early AI adoption alone, are indicated as pre-requisites for sustainable growth, as merely adding new technology does not solve the underlying margin or process challenges.For MSPs and IT leaders, these dynamics translate to concrete operational risks: underestimating cost structure, slow hiring processes, and reliance on commoditized pricing expose businesses to margin erosion and slow response to market shifts. Building robust, value-based pricing strategies, investing in internal talent development, and streamlining hiring and onboarding are positioned as necessary—but not sufficient—conditions for survival. Rapid AI adoption without foundational process discipline creates more risk than opportunity in the current market landscape.Supported by:ProofpointHaloPSA 💼 All Our SponsorsMSP Radio is supported by our partners: ABC Solutions · CometBackup · Guardz · HaloPSA · LogMeIn · Mailprotector · OpenText · Pax8 · Proofpoint · Rythmz · ScalePad · TimeZest · Transit AI · USecureSupporting 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: <a href="https://www.linkedin.c
- 2 days ago15 min
Entry-Level Tech Roles Shrink with Automation; Senior Talent Harder to Acquire and Afford
The episode outlines a structural shift in managed services and IT operations: the automation and unbundling of junior technical work due to the integration of automated tools and AI-driven solutions. This change is absorbing the traditional entry-level, apprenticeship-oriented roles within MSPs and IT organizations, fundamentally altering career development pathways. The trend is illustrated by specific product launches and research findings from entities such as TeamViewer, RDE Technologies, the Center for an Urban Future, the Bureau of Labor Statistics, and SignalFire.Primary evidence centers on quantitative labor data. According to the Center for an Urban Future, entry-level tech job postings in New York City declined 49% since 2022, while Bureau of Labor Statistics projections show a 3% decline in employment for computer support specialists by 2035, amounting to a reduction of 24,300 roles. At the same time, new graduate hiring at large technology firms and startups has dropped by 65% and 76%, respectively, according to SignalFire. In contrast, higher-skilled technology roles—including data scientists and security analysts—are forecasted to add over 310,000 positions over the same timeframe.Secondary developments reinforce the trend. TeamViewer released a support agent that automates fixes with senior technician approval, while RDE Technologies adopted a tool (Vight) automating ticket notes, time entries, and coaching data from support calls. These tools reduce learning opportunities for junior staff. On the hiring side, research highlights that junior hires are arriving at pay rates equal to or above existing staff, creating training, motivation, and retention challenges. At the senior end, a noticeable increase in exits from AI-exposed professions among older workers represents a further supply squeeze.The operational implication for MSPs and IT leaders is a direct challenge to traditional hiring and talent development strategies. Automation is reducing the volume of teachable, ticket-based tasks necessary for hands-on training, while elevating compensation for new and senior staff. MSPs face a choice: deliberately reserve real client work for skill development—accepting lower margins to “manufacture” future engineers—or compete for costly senior talent amid a shrinking candidate pool. Budgeting for training must become an explicit, defended line item, and pricing should reflect the operational burden of nurturing internal talent versus buying it on the open market.00:00 The Job That Stopped Existing 03:48 Built Out Of Easy Tickets06:54 The Engineer Isn't For Sale11:03 Why Do We Care?Supported by: WebPros(CometBackup) USecure 💼 All Our SponsorsMSP Radio is supported by our partners: ABC Solutions · CometBackup · Guardz · HaloPSA · LogMeIn · Mailprotector · OpenText · Pax8 · Proofpoint · Rythmz · ScalePad · TimeZest · Transit AI · USecureSupporting 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’
- 3 days ago36 min
Jay McBain on Why AI and SaaS Marketplaces Are Redefining MSP Revenue Models
The dominant structural shift outlined is an accelerating concentration of market power and operational control within a handful of large technology companies and platforms, exacerbated by aggressive vendor channel consolidation and a move toward marketplace-based service delivery. This concentration is evidenced by recent actions such as Broadcom’s decision to cut roughly 90% of VMware’s partners and take top-tier accounts direct, as well as the increasing tendency of hyperscalers and major vendors—including Microsoft, AWS, and Google—to funnel services and resources directly through their own marketplaces and forward-deployed engineering teams. Reports discussed, such as the Omdia Global Partner 1000, reinforce the extent to which the industry has pivoted toward highly scaled players at the expense of smaller channel partners and MSPs.Evidence from the Omdia Global Partner 1000 report demonstrates that the top 30 service partners now generate the same amount of revenue as the bottom 970 combined, with the remaining 970 firms outperforming over a million additional smaller providers. The managed services market was noted at $608 billion—1.5 times the size of the global SaaS industry and all hyperscalers—yet smaller MSPs report decreased growth expectations and declining vendor satisfaction; for example, satisfaction in the UK and Ireland dropped from 37% to 19%. Further, partner programs for generative AI remain underdeveloped, with over 90% at only “maturity 3 of 10,” while 82% of MSPs acknowledge they are not prepared to scale as rapidly as customer demand for AI-driven outcomes will require.Additional developments deepening this concentration include widespread launches of vendor-controlled marketplaces and the growth of token-based consumption models. Companies such as SuperOps, ManageEngine, and Pax8 are positioning their platforms as marketplaces for MSP-delivered AI and SaaS, while Microsoft and AWS continue to expand both their direct-to-customer strategy and investments in pre-sale technical resources. Analysts project that the shift toward token-based billing and variable consumption will disrupt traditional per-user pricing, limiting future margin opportunities and accelerating direct transactional relationships between vendors and end-customers.For MSPs and service providers, these shifts increase dependency on large vendor platforms, raise the risk of abrupt contract changes, and intensify pricing and margin pressure. Traditional models relying on single-source vendor relationships and predictable per-user or per-device billing are likely to be replaced by variable, consumption-based contracts governed by token usage and direct marketplace transactions. Providers must prepare for heightened governance requirements, increased operational complexity in managing multi-vendor and multi-marketplace integrations, and potential threats to their role as strategic intermediaries in client accounts.Supported by: ProofpointGuardzUSecure 💼 All Our SponsorsMSP Radio is supported by our partners: ABC Solutions · CometBackup · Guardz · HaloPSA · LogMeIn · Mailprotector · OpenText · Pax8 · Proofpoint · Rythmz · ScalePad · TimeZest · Transit AI · USecureSupporting 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?
- 4 days ago13 min
Loss of Vendor-Free MSP Spaces: ASCII Acquisition Means New Risks for Peer Conversations
The core structural shift analyzed is the consolidation of service provider-only peer communities into trade associations representing the entire technology channel, including vendors, distributors, and service providers. This shift is illustrated by the acquisition of the ASCII Group, a 42-year-old peer network for independent IT businesses, by the Global Technology Industry Association (GTIA), which counts vendors such as Sophos and Pax8 among its leadership.The transaction led to about 1,000 ASCII members joining GTIA’s 3,000 member companies, with ASCII member dues dropping by approximately 25%, continued use of the ASCII brand, and preservation of regional events, according to GTIA and details reported by CRN. The deal followed the death of ASCII founder Alan Weinberger and the association’s sale by his family. Official communications framed the result as a benefit for members, with GTIA’s leadership emphasizing reduced costs and expansion of benefits.The episode highlights that these two organizations were fundamentally built on opposite membership models: ASCII as a service-provider-only peer room, and GTIA as a trade body encompassing vendors, service providers, resellers, and other channel actors. The merger means the vendor-inclusive model supersedes the exclusive peer-room structure. While operational changes are framed as positive, the consolidation eliminates the guarantee of vendor-free conversations—now, what was previously a closed peer group is just one optional add-on in a vendor-inclusive association.For MSPs and IT leaders, this shift increases dependency on cross-channel associations and removes an environment for fully candid, vendor-free discussions that can inform pricing, contract negotiations, and peer benchmarking. Price reductions are the only change reflected on invoices, while the loss of a controlled guest list is a less visible but material product change. Operators are advised to audit where they obtain operational intelligence and reconsider the role and value of peer-only communities for competitive negotiation and unconflicted advice, recognizing that such spaces may become niche or disappear entirely if consolidation continues.00:00 The Deal Everyone Liked https://businessof.tech/2026/09/16/the-room-with-no-vendors-in-it/04:27 Two Ideas Of Membership07:02 Nobody Got A Vote10:22 Why Do We Care? Supported by: OpenText Proofpoint 💼 All Our SponsorsMSP Radio is supported by our partners: ABC Solutions · CometBackup · Guardz · HaloPSA · LogMeIn · Mailprotector · OpenText · Pax8 · Proofpoint · Rythmz · ScalePad · TimeZest · Transit AI · USecureSupporting 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:💬 <a href="http
- 5 days ago12 min
AI Channel Programs Shift Forecasting Risk to MSPs as Vendor Sales Fall Short
The episode reveals a structural transfer of forecasting and adoption risk from AI vendors to managed service providers (MSPs) and IT service organizations. Five companies—CyberFOX, Intezer, Sophos, Flamingo, and Charles IT—have taken distinct strategies to expand AI capabilities within the channel, underscoring a coordinated attempt to shift the uncertainty of AI demand, usage, and revenue forecasting off vendors’ balance sheets and onto service providers.A central data point comes from Gartner’s survey of over 1,300 technology leaders at companies above $50 million in revenue: fewer than one in four have successfully scaled an AI project across business units, even as 85% plan to increase AI investment and many cannot quantify current spending. Analysts note a move away from flat-rate subscriptions toward usage-based AI pricing, significantly increasing projected IT costs through 2035 for customers. The episode highlights that vendors are pre-building AI channel programs with the expectation that third-party providers will absorb both commitment risk and customer deployment burdens.Supporting evidence includes announcement details: CyberFOX’s new North American deal with Ingram Micro, Intezer’s launch of a comprehensive partner portal, Sophos’s OpenAI integration targeting MSPs, Flamingo’s open-source AI agent platform, and Charles IT’s acquisition of Descent, an AI-native MSP. Spending data from Ramp and adoption surveys from the Census Bureau and Futurum Group further illustrate the gap between stated AI success and actual operational adoption, elucidating systemic uncertainty and reporting bias in AI project returns.For MSPs and IT leaders, the implications are clear: the structural shift means channel programs increasingly pass fixed commitments and usage volatility to service firms while providing little guaranteed demand. Practical safeguards include independently counting and verifying clients with active, process-integrated AI adoption before entering distribution contracts. Defining specific, outcome-focused criteria for adoption can protect against being tied to overambitious vendor forecasts, allowing providers to negotiate terms on verifiable demand rather than projections that vendors themselves could not convert.00:00 Everyone Is Selling To You 03:41 The Forecast That Didn't Convert06:29 Nobody Can Prove The Demand09:38 Why Do We Care?Supported by: GoTo(LogMeIn) Pax8 💼 All Our SponsorsMSP Radio is supported by our partners: ABC Solutions · CometBackup · Guardz · HaloPSA · LogMeIn · Mailprotector · OpenText · Pax8 · Proofpoint · Rythmz · ScalePad · TimeZest · Transit AI · USecureSupporting 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:🌐 <a href="https://w
- 6 days ago13 min
Reseller, MSP, Services Merged: Structural Risks and Rewards in Barracuda’s Program – Michelle Hodges
Barracuda’s recent unification of its reseller, MSP, and services programs into a single partner success structure highlights a continuing trend toward channel consolidation and streamlined partner management among technology vendors. This realignment is designed to provide partners with a unified interface and consistent experience, moving away from segmented, product-specific engagement and instead centralizing processes, portals, and incentives under one program.The most consequential operational development is the consolidation of partner access points, reducing from seven disparate logins to a single portal. According to Barracuda, this centralization supports not only transactional activity but also encompasses partner enablement, updated certifications, automation of onboarding, and incentives tied to the entire customer lifecycle. The company reports that partner engagement through the new portal has exceeded prior benchmarks by over 20% compared to the previous period, with error rates reported below 10%.Supporting developments include Barracuda’s adjustment of program features such as launching “Barracuda ONE” and Mastery certifications, adding compliance and AI-focused badges, and introducing a buy-now feature tailored for lower-volume purchases. The company also referenced plans to further modernize renewals, contracts, and support structures to address common channel complaints in billing, contract flexibility, and support availability.For MSPs and IT providers, these changes shift operational dynamics by consolidating vendor dependence and reducing administrative friction, but may also introduce risks related to program uniformity and centralized governance. Reliance on a single vendor-managed platform can concentrate risk if features or support become limiting for certain business models. MSPs should assess the tradeoffs of standardized engagement versus flexibility—especially for scenarios like minimum seat requirements and variable contract terms—and scrutinize the alignment between partner incentives and evolving compliance and technology demands.Supported by: ScalePadHaloPSA 💼 All Our SponsorsMSP Radio is supported by our partners: ABC Solutions · CometBackup · Guardz · HaloPSA · LogMeIn · OpenText · Pax8 · Proofpoint · Rythmz · ScalePad · TimeZest · Transit AI · USecureSupporting 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.techInstagram: https://www.instagram.com/mspradioTikTok: https://www.tiktok.com/@businessoftechFacebook: https://www.facebook.com/mspradionews
- 1 weeks ago15 min
What MSP Operators Overlook in Operations Before Selling—Insights from Evergreen’s Craig Fulton
The episode highlights the ongoing consolidation of the MSP sector, driven by acquisition-focused entities like Evergreen Services Group. This structural mechanism centers on long-term acquisition strategies and the operational integration of MSPs, with Evergreen positioning itself as a permanent holder rather than a market aggregator intent on short-term profit. The discussion underscores how private equity-backed firms operate within multi-market IT services, spanning managed services, application support, and specialized government contracts.Evergreen Services Group reports completing 47 acquisitions in the previous year, now owning 135 MSPs and 171 companies overall, with stated revenues of $1.5 billion and $250 million EBITDA. According to Craig Fulton, the company’s standard acquisition model typically offers 90% of enterprise value in cash at closing, with a remaining 10% tied to a one-year earnout dependent on 15% EBITDA growth. Quality of earnings assessments and customer renewal health are described as primary factors that can stall or terminate deals, particularly if financial accounts lack clarity or significant customer dissatisfaction emerges.A recurring operational gap identified by Evergreen in acquisition targets is the absence of a dedicated growth leader within firms, which raises post-sale continuity risks. While questions were raised about the possibility of acquisitions inadvertently generating new competition in local markets—through staff departures and new businesses—no substantive evidence was cited that this has impacted consolidation effectiveness or market saturation. The dialogue also explored Evergreen’s investor structure and commitment to transparency about backend ownership and fund relationships with sellers, with claims of a high earnout payment rate and seller satisfaction.For MSPs and IT leaders, the practical implications involve heightened scrutiny of operational maturity, especially in finance and client management roles, to realize sustained valuation and minimize deal-related risk. Vendor dependency deepens post-acquisition, as Evergreen leverages consolidated contracts to meet earnout targets. Owners not seeking to sell are advised to reassess account management practices, explore targeted AI integration for client engagement, and maintain competitive EBITDA performance, as independently managed firms continue to demonstrate strong profitability metrics. Supported by: GuardzTimeZest 💼 All Our SponsorsMSP Radio is supported by our partners: ABC Solutions · CometBackup · Guardz · HaloPSA · LogMeIn · OpenText · Pax8 · Proofpoint · Rythmz · ScalePad · TimeZest · Transit AI · USecureSupporting 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: ht
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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