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

04/21/25 • 11 min

Business of Tech: Daily 10-Minute IT Services Insights

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

Supported by: https://www.huntress.com/mspradio/

https://cometbackup.com/?utm_source=mspradio&utm_medium=podcast&utm_campaign=sponsorship

Join Dave April 22nd to learn about Marketing in the AI Era. Signup here: https://hubs.la/Q03dwWqg0

All our Sponsors: https://businessof.tech/sponsors/

Do you want the show on your podcast app or the written versions of the stories? Subscribe to the Business of Tech: https://www.businessof.tech/subscribe/

Looking for a link from the stories? The entire script of the show, with links to articles, are posted in each story on https://www.businessof.tech/

Support the show on Patreon: https://patreon.com/mspradio/

Want to be a guest on Business of Tech: Daily 10-Minute IT Services Insights? Send Dave Sobel a message on PodMatch, here: https://www.podmatch.com/hostdetailpreview/businessoftech

Want our stuff? Cool Merch? Wear “Why Do We Care?” - Visit https://mspradio.myspreadshop.com

LinkedIn:

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

Supported by: https://www.huntress.com/mspradio/

https://cometbackup.com/?utm_source=mspradio&utm_medium=podcast&utm_campaign=sponsorship

Join Dave April 22nd to learn about Marketing in the AI Era. Signup here: https://hubs.la/Q03dwWqg0

All our Sponsors: https://businessof.tech/sponsors/

Do you want the show on your podcast app or the written versions of the stories? Subscribe to the Business of Tech: https://www.businessof.tech/subscribe/

Looking for a link from the stories? The entire script of the show, with links to articles, are posted in each story on https://www.businessof.tech/

Support the show on Patreon: https://patreon.com/mspradio/

Want to be a guest on Business of Tech: Daily 10-Minute IT Services Insights? Send Dave Sobel a message on PodMatch, here: https://www.podmatch.com/hostdetailpreview/businessoftech

Want our stuff? Cool Merch? Wear “Why Do We Care?” - Visit https://mspradio.myspreadshop.com

LinkedIn:

Previous Episode

How AI is Transforming Medical Translation: A Translator's Journey and Strategies with Jason Willis Lee

Jason Willis Lee, a specialized medical translator, discusses the impact of AI on the translation industry, particularly in the medical field. With a background in medicine and extensive experience in translating clinical trials, medical reports, and academic research, he has witnessed firsthand the disruption caused by AI technologies. While machine translation tools like Google Translate and DeepL have improved significantly, they still struggle with nuances and specialized terminology, which are crucial in medical translation. As a result, Willis Lee emphasizes the importance of human oversight in the translation process, particularly through post-editing of machine-generated content.

The conversation delves into the evolving landscape of the translation industry, where generalist translators are increasingly being squeezed out due to the rise of AI. Willis Lee notes that many translators are facing reduced income and job opportunities, particularly those who do not specialize in niche areas. He advocates for the necessity of niching down to survive in this changing environment, suggesting that specialized translators in fields like medical translation and linguistic validation will have better prospects than generalists.

Willis Lee also shares insights into his own career trajectory, highlighting the importance of investing in professional development and adapting to industry changes. He discusses the shift from high-volume, low-cost translation work to low-volume, high-value projects, encouraging aspiring translators to specialize early in their careers. He believes that those who can effectively leverage AI tools while maintaining a human touch will thrive, as they can offer a hybrid service that combines efficiency with quality.

Finally, he reflects on the opportunities that AI presents, arguing that it can enhance productivity and create new revenue streams for translators. By diversifying their services and exploring areas like consulting, affiliate marketing, and podcasting, translators can adapt to the changing landscape and find success. Willis Lee's perspective underscores the importance of resilience and innovation in navigating the challenges posed by AI in the translation industry.

All our Sponsors: https://businessof.tech/sponsors/

Do you want the show on your podcast app or the written versions of the stories? Subscribe to the Business of Tech: https://www.businessof.tech/subscribe/

Looking for a link from the stories? The entire script of the show, with links to articles, are posted in each story on https://www.businessof.tech/

Support the show on Patreon: https://patreon.com/mspradio/

Want to be a guest on Business of Tech: Daily 10-Minute IT Services Insights? Send Dave Sobel a message on PodMatch, here: https://www.podmatch.com/hostdetailpreview/businessoftech

Want our stuff? Cool Merch? Wear “Why Do We Care?” - Visit https://mspradio.myspreadshop.com

LinkedIn: https://www.linkedin.com/company/28908079/

YouTube: https://youtube.com/mspradio/

Facebook: https://www.facebook.com/mspradionews/

Instagram: https://www.instagram.com/mspradio/

TikTok: https://www.tiktok.com/@businessoftech

Bluesky: https://bsky.app/profile/businessof.tech

Next Episode

Ransomware Hits SMBs Hard, Google OAuth Exploited, Gladinet's Security Flaw, and AI Scraping Issues

Ransomware attacks targeting small and medium-sized businesses (SMBs) have reached alarming levels, with a recent UK government survey revealing that 1% of organizations reported such incidents, affecting approximately 19,000 entities. This marks a significant increase from the previous year, highlighting a troubling trend where nation-state actors are increasingly focusing on SMBs due to their often inadequate cybersecurity measures. The survey also indicates a decline in board-level cybersecurity responsibility, with only 27% of businesses having a cyber specialist on their board, down from 38% four years ago. As the frequency of ransomware incidents decreases, the cost per incident is rising, emphasizing the need for resilience-focused security measures.

In addition to ransomware, a vulnerability in Google's OAuth system has been exploited by phishers to create sophisticated attacks that mimic legitimate emails from Google. This DKIM replay phishing attack allows hackers to bypass security checks, making it difficult for users to detect scams. A notable case involved a developer receiving a fraudulent email that appeared to be a legitimate security alert. This incident underscores the importance of updating security awareness training, as traditional methods may not adequately prepare users for such advanced phishing techniques.

Another significant security concern arose from a flaw in Gladinet's Centristack file-sharing platform, which allows remote code execution due to a deserialization issue linked to hard-coded cryptographic keys. This vulnerability has already been exploited in multiple cases, raising alarms within the cybersecurity community. Gladinet has advised customers to upgrade or change their keys to mitigate potential threats. Additionally, Microsoft acknowledged a flaw in its Intune device management tool that inadvertently allowed unauthorized Windows 11 upgrades, prompting organizations to revert affected devices.

On a different note, Wikipedia has partnered with Kaggle to create a machine-readable dataset of its content for training AI models, addressing the challenges posed by content scraping. This initiative aims to manage the rising costs associated with non-human traffic while protecting contributors' rights under Creative Commons licensing. Meanwhile, concerns have emerged regarding the impact of AI on human intelligence, with studies indicating that reliance on AI tools may inhibit critical thinking skills, particularly among younger users. As organizations navigate the complexities of AI integration, the need for resilient systems that can adapt to these changes becomes increasingly critical.

Four things to know today

00:00 Ransomware Evolves: Targeting Improves, Board Accountability Wanes, and SMBs Face Growing Geopolitical Risk

03:32 Secure by Default? Not This Week — Google, Microsoft, and Gladinet Say Otherwise

07:32 Wikipedia Feeds the AI Beast—But Wants to on Its Own Terms

10:04 AI Overload: How Education, Cognitive Skills, and Enterprise Strategy Are Buckling Under Pressure

Supported by: https://cometbackup.com/?utm_source=mspradio&utm_medium=podcast&utm_campaign=sponsorship

https://getflexpoint.com/msp-radio/

All our Sponsors: https://businessof.tech/sponsors/

Do you want the show on your podcast app or the written versions of the stories? Subscribe to the Business of Tech: https://www.businessof.tech/subscribe/

Looking for a link from the stories? The entire script of the show, with links to articles, are posted in each story on https://www.businessof.tech/

Support the show on Patreon: https://patreon.com/mspradio/

Want to be a guest on Business of Tech: Daily 10-Minute IT Services Insights? Send Dave Sobel a message on PodMatch, here: https://www.podmatch.com/hostdetailpreview/businessoftech

Want our stuff? Cool Merch? Wear “Why Do We Care?” - Visit https://mspradio.myspreadshop.com

LinkedIn:...