Business of Tech: Daily 10-Minute IT Services Insights

AI Employees: Revolutionizing IT Services with Ken Cox

Business of Tech: Daily 10-Minute IT Services Insights

02/08/25 • 20 min

Ken Cox, the president of InLink, leads a unique organization that operates at the intersection of data center operations and IT services. Initially founded in 2000, InLink has evolved from its roots in the dot-com era, leveraging its data center to create a variety of products and services. With a focus on providing affordable and reliable infrastructure, the company caters to clients who require a more personalized approach than what large public cloud providers can offer. This commitment to customer service and data ownership sets InLink apart in a competitive landscape dominated by giants like Microsoft and Amazon.

Cox discusses the pressures faced by data center businesses in the current market, particularly as small and mid-sized businesses increasingly turn to SaaS applications. He emphasizes the importance of maintaining a strong core customer base and the advantages of being privately held, which allows InLink to prioritize client data security and personalized service over profit maximization. This approach resonates with clients who seek a trustworthy partner for their IT needs, especially in critical sectors like healthcare and aviation.

In addition to data center operations, InLink is venturing into the crowded collaborative software space, where it aims to differentiate itself by offering tailored solutions and exceptional support. Cox highlights the importance of being a single point of contact for clients, allowing them to streamline their IT services. By integrating AI into their offerings, InLink is not only enhancing its email services but also providing innovative solutions that address the specific needs of small businesses. This includes AI-driven tools for managing customer interactions and automating workflows, which can significantly improve efficiency.

Cox's insights into managing AI employees reveal a thoughtful approach to leveraging technology while maintaining a human touch. He emphasizes the need for oversight and training of AI systems to ensure they meet client expectations. By treating AI as an employee that requires management, InLink is positioning itself to offer advanced solutions that are both effective and affordable. Ultimately, Cox's philosophy of balancing short-term needs with long-term growth reflects a commitment to sustainable business practices, ensuring that InLink remains a valuable partner for its clients in an ever-evolving technological landscape.

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Navigating Compliance, Cybersecurity Investment, & Decision-Making w/ Jared Casner

Business of Tech: Daily 10-Minute IT Services Insights

12/30/24 • 18 min

The discussion begins with Jared Casner sharing his journey into the channel, highlighting a pivotal shift from direct sales to working with Managed Service Providers (MSPs). Initially targeting small businesses with a compliance-as-a-service platform, Jared and his team quickly realized the importance of MSPs in deploying their solution effectively. This realization led them to invest time in understanding the channel, attending conferences, and learning from their MSP partners.

Jared elaborates on the challenges small businesses face regarding compliance and security, drawing from his extensive experience as a CTO in finance and healthcare. He emphasizes the pain points he encountered while building security programs from scratch and the lessons learned along the way. The conversation reveals that the genesis of Blacksmith InfoSec stemmed from a desire to create software that simplifies compliance processes, making them more accessible and affordable for small businesses.

The episode delves into the concept of viewing security as an investment rather than a cost. Jared explains how early investments in security can lead to long-term benefits, akin to a 401k approach. By embedding security into the organizational culture, businesses can foster a proactive mindset among employees, reducing the likelihood of security breaches. This proactive approach not only mitigates risks but also enhances operational efficiency, allowing businesses to respond more effectively to compliance demands and potential threats.

As the discussion progresses, Jared shares insights into risk management and the importance of tailored solutions for different businesses. He discusses the need for a scoring system that helps organizations understand their risk levels and prioritize compliance efforts. By providing a phased compliance roadmap and risk assessments, Blacksmith InfoSec aims to empower MSPs to guide their clients in making informed decisions about their security investments. The episode concludes with Jared reflecting on the decision-making framework that drives their product development, emphasizing collaboration and strategic planning to meet the evolving needs of their partners and clients.

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00:00 78% of Businesses Struggle with AI Adoption Due to Weak Data Foundations, Says MIT Report

AI Adoption Challenges, Passkey Innovations, and Zero Trust Security in Business Strategies

Business of Tech: Daily 10-Minute IT Services Insights

10/17/24 • 11 min

A recent MIT report revealing that 78% of businesses face challenges in AI adoption due to weak data foundations. Despite high aspirations for AI, such as enhancing efficiency and fostering innovation, only a small percentage of business leaders feel adequately prepared to engage with AI technologies. The report highlights that data governance and quality are significant obstacles, emphasizing the need for organizations to address underlying data issues before embarking on AI projects.

The episode also covers the FIDO Alliance's announcement at the Authenticate conference regarding the Credential Exchange Protocol (CXP), which aims to make passkeys portable across different digital ecosystems. This initiative, supported by major tech companies like Apple, Google, and Microsoft, seeks to standardize secure transfer processes for passkeys, reducing concerns over vendor lock-in. The growing acceptance of passwordless technology is underscored by Amazon's report of over 175 million customers activating passkeys, indicating a shift towards more secure digital practices.

Host Dave Sobel contrasts the approaches of OpenAI and Anthropic in the realm of AI development. OpenAI's new O1 model family focuses on structured prompt generation for efficiency and accuracy, while Anthropic emphasizes a more conversational and engaging AI experience. This divergence in methodologies reflects the differing priorities of the two companies, with OpenAI aiming for structured outputs and Anthropic fostering a personable interaction style. Additionally, a study by Apple researchers reveals limitations in mathematical reasoning within large language models, stressing the importance of human oversight in decision-making processes.

Finally, the episode highlights the need for organizations to modernize their cybersecurity strategies by adopting an identity-centric zero trust model. As hybrid work environments and AI technologies challenge traditional security practices, a zero-trust approach ensures that all access requests are verified, protecting sensitive resources from unauthorized access. Sobel also discusses the importance of fostering AI experimentation within organizations to bridge the gap between individual productivity gains and overall performance, encouraging a cultural shift towards embracing AI as an integral part of business strategy.

Four things to know today

02:12 FIDO Alliance Unveils New Protocol to Make Passkeys Portable Across Platforms

03:56 OpenAI’s Structured AI vs. Anthropic’s Conversational AI: What It Means for Business Efficiency

06:23 Why AI Experimentation and Zero-Trust Security Are the Future of Organizational Strategy

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Agentic AI and Automation: Transforming SMB Operations with Anurag Agrawal of TechAisle

Business of Tech: Daily 10-Minute IT Services Insights

01/25/25 • 35 min

In this episode of the Business of Tech Lounge, host Dave Sobel welcomes Anurag Agrawal, Chief Global Analyst and CEO of TechIsle, to discuss key trends that SMBs and mid-market companies should watch for in 2025. They explore the rise of agentic AI, the impact of AI-powered PCs, and how SMBs can effectively tackle their top business goals and IT challenges. Anurag shares his insights based on nearly 40 years of industry experience, providing valuable predictions and strategies for technology priorities in the upcoming yea

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00:00 OpenAI and AI Industry Pivot as Scaling Plateaus: Shift Towards Human-like Reasoning Could Redefine Market Competition

AI Scaling Challenges, Market Shifts, Security Innovations, and Energy Supply Issues for Tech Firms

Business of Tech: Daily 10-Minute IT Services Insights

11/13/24 • 16 min

Significant challenges are being faced by companies like OpenAI as they encounter scaling plateaus in developing new large language models. Host Dave Sobel notes that AI researchers are advocating for innovative training techniques that mimic human reasoning, suggesting a shift in the competitive landscape. OpenAI's latest model, O1, employs a technique called test-time compute, which allows for real-time evaluation of multiple possibilities, potentially enhancing performance and altering the demand for AI hardware, particularly NVIDIA's chips.

The episode also delves into the mixed sentiments surrounding AI-capable PCs. Despite a notable 49% growth in sales, these devices only represent 20% of the market, with many channel partners expressing skepticism about their value. A significant portion of IT decision-makers remains hesitant to trust AI for autonomous decision-making, reflecting broader concerns about security and ethical implications. Sobel emphasizes the need for clearer value propositions and better education to promote AI-capable PCs, especially as the industry transitions from the hype phase to a more normalized adoption of AI technologies.

Sobel highlights the increasing focus on cybersecurity as CrowdStrike launches its AI Red Team services to protect AI systems from rising cyber threats. With the rapid adoption of AI, risks such as model tampering and data poisoning are becoming more prevalent. The episode also touches on Microsoft's recent issues with unexpected upgrades to Windows Server, which have left some users in a difficult position, and the company's efforts to enhance its update procedures.

Finally, the episode addresses the energy challenges faced by tech companies, particularly Amazon, which had its request for increased power supply denied by regulators. As demand for data center power is projected to rise significantly, Sobel discusses the potential for partnerships with nuclear and renewable energy providers to ensure stability and sustainability in energy supply. The episode concludes by emphasizing the importance of energy efficiency in data center operations as companies navigate regulatory pressures and seek innovative solutions to meet their energy needs.

Four things to know today

05:21 AI's Channel Opportunity Grows, But Skepticism Toward AI-Capable PCs Highlights Industry Trust Gap

09:01 CrowdStrike, Microsoft, and Box Drive AI and Security Enhancements Amid Rising Enterprise Demand

13:01 Amazon’s Power Request Denial Signals Rising Challenges in Data Center Energy Demands

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00:00 US GDP Growth Holds Steady at 2.8%, But Job Market Weakens Amid Small Business Hiring Struggles and Tech Stability

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US GDP Steady, Intel's Historic Loss, CompTIA's For-Profit Shift & Tech Hiring Trends

Business of Tech: Daily 10-Minute IT Services Insights

11/04/24 • 11 min

The latest economic indicators highlight a steady U.S. GDP growth rate of 2.8% for the third quarter of 2024. This growth is supported by a notable increase in consumer spending, which rose at a 3.7% annualized rate. However, the job market shows signs of stagnation, with only 12,000 new jobs added in October, raising concerns about underlying weaknesses. Despite the unemployment rate remaining steady at 4.1%, the episode emphasizes the challenges faced by small businesses in filling job vacancies, particularly in sectors like construction and transportation.

Host Dave Sobel also delves into the tech employment landscape, noting that while the tech unemployment rate held steady at 2.6%, the sector experienced a slight decline in jobs. The report from CompTIA indicates a positive trend in job listings for tech positions, but the overall employment numbers reflect a tightening labor market. The episode highlights the struggles small businesses face in hiring qualified candidates, with many owners reporting unfilled job openings and a decrease in hiring efforts.

The episode shifts focus to Intel, which has reported a staggering $16.6 billion loss for the third quarter, marking the largest quarterly loss in its history. This loss is attributed to significant asset depreciation and restructuring charges following substantial layoffs. Sobel discusses the competitive landscape, particularly the challenges Intel faces from rivals like Nvidia and AMD in the AI chip market. In contrast, Reddit has reported its first profitable quarter as a public company, showcasing a significant turnaround and strong investor confidence.

Finally, the episode covers the acquisition of CompTIA's certification business by HIG Capital and Thoma Bravo, transitioning it to a for-profit model. This move raises questions about the future of CompTIA's mission to serve the IT industry and the implications for its existing non-profit organization. Sobel encourages listeners to reevaluate their relationships with CompTIA in light of these changes, emphasizing the evolving landscape of certification and training in the tech industry.

Three things to know today

05:15 Intel Reports Record $16.6 Billion Loss Amid Layoffs and Depreciation, While Reddit Achieves First Profitable Quarter

07:10 H.I.G. Capital and Thoma Bravo to Acquire CompTIA’s Certification Business, Transitioning to For-Profit Model

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00:00 Remote Work Fuels Startup Surge, Alters IT Talent Strategies Amid Growing Demand for Flexibility

Rise in Remote Work Drives New Ventures; Insurers Address AI Risks as CISA Alters Info Sharing

Business of Tech: Daily 10-Minute IT Services Insights

05/13/25 • 13 min

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 while also facing higher employee attrition rates.

The insurance industry is beginning to address the risks associated with artificial intelligence (AI) by offering new products to cover potential losses from AI-related errors. Lloyds of London has introduced a policy that protects businesses from legal claims arising from malfunctioning AI systems, reflecting a growing recognition of AI as an operational risk. This development raises important questions about accountability and liability when AI systems fail, as seen in recent incidents involving customer service chatbots. As insurers start to underwrite AI risks, companies must adapt their service level agreements and governance structures to meet new requirements.

The Cybersecurity and Infrastructure Security Agency (CISA) has announced a significant change in how it shares information, focusing on urgent alerts related to emerging threats while reducing routine updates. This shift, coupled with budget cuts that could reduce CISA's funding by 17%, raises concerns about the agency's capacity to respond to increasing cyber threats. IT services firms and cybersecurity vendors must adapt to this new landscape, as the responsibility for threat detection and response shifts more towards the private sector. Organizations that previously relied on CISA for support may find themselves facing increased operational risks due to reduced visibility and slower response times.

In a related development, Microsoft has extended support for its Office applications on Windows 10 until October 2028, allowing users more time to transition to Windows 11. This decision reflects a broader trend in the technology sector, where companies are adapting their support strategies to meet user needs. By decoupling the upgrade cycles for Windows and Office, Microsoft acknowledges the resistance to forced upgrades and the importance of maintaining enterprise customer relationships. This extension provides IT service providers with additional time for operational planning while emphasizing the ongoing need for modernization in the long term.

Four things to know today

05:07 From Chatbot Lawsuits to Pontifical Warnings: AI Errors Now Seen as Business and Social Risk

07:57 CISA Alert Shift and Budget Cuts Signal Rising Cybersecurity Burden for Private Sector

10:08 Office Gets a Lifeline on Windows 10: Microsoft Decouples OS and App Upgrades Through 2028

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SMBs Boost AI Budgets, Europe Shifts from US Cloud, US Manufacturing Sentiment Declines

Business of Tech: Daily 10-Minute IT Services Insights

04/21/25 • 11 min

Small to medium-sized businesses (SMBs) are increasingly turning to third-party service providers to enhance their capabilities in artificial intelligence (AI) and hybrid cloud solutions. A recent Forrester report, commissioned by Crayon, indicates that 31% of surveyed leaders from Australia, New Zealand, India, and Southeast Asia plan to combine in-house teams with external providers to improve their AI capabilities within the next year. The report highlights a significant interest in AI, with 83% of respondents experimenting with free AI tools, although many are still in the exploration phase rather than implementation. Additionally, 87% of businesses are increasing their budgets for third-party services, signaling a shift towards advisory and pilot projects rather than traditional managed services.

In Europe, there is a growing trend among customers to seek alternatives to U.S. cloud service providers due to concerns over reliability, pricing, and data security. Discussions at the recent KubeCon EU event revealed a tripling of inquiries for local cloud solutions, with companies like NextCloud gaining traction. The dominance of major players like Amazon Web Services, Microsoft, and Google, which control about 70% of the European cloud market, is being challenged as organizations question their control over data and consider a transition to trusted local providers.

Meanwhile, U.S. manufacturing sentiment is declining, with many manufacturers bracing for recession-like conditions amid ongoing trade tensions. Surveys indicate a significant drop in optimism among factory owners, with the New York Federal Reserve reporting one of the lowest outlooks in over two decades. Although manufacturing output saw a slight increase in March, the overall landscape remains volatile, with future hiring intentions at their lowest since 2016. This juxtaposition of rising output against declining sentiment underscores the complexities facing the manufacturing sector.

Lastly, Synology is tightening its grip on hardware by implementing restrictions on the use of third-party hard drives in its future network-attached storage devices. Starting in 2025, only Synology-branded drives and those certified by the company will be supported for full functionality. This move raises concerns about vendor lock-in, particularly for managed service providers (MSPs) who have relied on Synology for its reliability and ease of use. Additionally, a cautionary tale emerges from U.S. Defense Secretary Pete Hegseth's misuse of Signal for sharing sensitive military information, highlighting the importance of operational security and the need for a strong cybersecurity culture within organizations.

Three things to know today

00:00 Tech Tides Are Shifting: SMBs Want Advice, Europe Wants Control, and U.S. Industry Feels the Strain

05:58 Hard Drives Locked Out: Synology Tightens the Rules, and MSPs Might Rethink Their NAS Game

07:32 He Did It Again: Hegseth’s Signal Habit Raises the Stakes for Cybersecurity Culture

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The Need for an AI Operating System: A Conversation with Alexander De Ritter

Business of Tech: Daily 10-Minute IT Services Insights

12/21/23 • 24 min

In this bonus episode of The Business of Tech, host Alexander DeRitter discusses SmythOS, an operating system designed to make the creation of AI agents easier. He explains that while Windows and iOS provide platforms for running programs and apps, SmythOS serves as a platform for running agents. DeRitter emphasizes the need for an abstraction layer in building agents, highlighting the importance of SmythOS in simplifying the process. Tune in to learn more about the role of operating systems in the AI space.

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