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PODCAST

Business of Tech: Daily MSP News & IT Services Analysis

MSP Radio, Dave Sobel, Managed Service Provider (MSP) Industry Analyst

Vendors are rewriting the rules on MSPs faster than anyone can track — pricing, partner programs, liability, and now AI. Business of Tech is the daily MSP news briefing that tells you what changed and what it means for your business. Every weekday, channel veteran Dave Sobel picks the MSP and IT services news that actually moves your margins, contracts, and risk, and answers the one question that matters: Why do we care? No vendor cheerleading and no press-release rewrites — independent analysis

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All Episodes

00:26:33

MSP cybersecurity: Fixed budgets can't cover school...

Business of Tech: Daily MSP News & IT Services Analysis ·

2026/10/12

The episode reveals a governance gap between mounting cybersecurity requirements and the operational realities facing MSPs serving charter schools and nonprofits. Charter Technology Solutions (CTS) exemplifies how regulatory mandates, cyber insurance controls, and evolving client demands confront fixed budgets and unique seasonal workloads in mission-driven verticals. Addressing these pressures necessitates major adaptations to vendor licensing models and new service design approaches to maintain

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00:20:28

MSP+ v. Bielanski: The Roll-Up Paperwork That Didn't...

Business of Tech: Daily MSP News & IT Services Analysis ·

2026/10/09

The episode highlights the risk of documentation mismatches and liability transfer within MSP mergers and acquisitions, using the example of MSP+—a consultancy formed by the 2023 merger of five advisory firms. Unclear responsibility for a $700,000 SBA loan and conflicting financial representations during the merger process led to litigation, underscoring how misaligned documents can result in legal and financial exposure.The central development is MSP+ suing its former CEO Adam Bielanski, his wife,

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00:44:53

Vendor Rebates Move to AI Growth—Anurag Agrawal...

Business of Tech: Daily MSP News & IT Services Analysis ·

2026/10/08

Vendor incentive structures are undergoing a significant realignment, shifting both margin pressure and financial risk toward MSPs and IT service providers. Microsoft’s recent policy change—eliminating flat CSP renewal rebates as of October 1 in favor of rewarding seat growth and AI workload adoption—directly illustrates this trend. Techaisle’s survey of 5,450 partners highlights the disconnect: 72% of incentive payouts occur at deal close, but 41% of MSP revenue is linked to renewals, pushing

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00:13:43

When Clients Build Instead of Buy, MSPs Inherit...

Business of Tech: Daily MSP News & IT Services Analysis ·

2026/10/07

Organizations are moving from purchasing commercial software to building their own applications with AI tools, shifting the ongoing maintenance and accountability from vendors to internal teams and MSPs. This creates governance gaps and operational risk that go unpriced, particularly as automation and custom app development become easier for enterprises, small businesses, and IT providers. Evidence comes from McKinsey’s State of AI survey, GoDaddy’s self-built app hosting, and direct MSP case

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00:13:34

Usage-Based AI Pricing: Why MSPs Must Own Consumption...

Business of Tech: Daily MSP News & IT Services Analysis ·

2026/10/06

Vendors are shifting to usage-based billing for enterprise AI tools, creating information and contract risk as consumption and related costs become less predictable for buyers. Microsoft’s change to Microsoft 365 Copilot Business licenses—sold through the Cloud Solution Provider program—illustrates this, as billing now includes a metered component tied directly to user activity instead of just fixed seat pricing.From November 2nd, each new Copilot license carries a $10 per-user monthly spending

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00:24:54

Brian J. Weiss: TechStack, Tenant Control, and...

Business of Tech: Daily MSP News & IT Services Analysis ·

2026/10/05

The episode highlights a structural shift toward MSPs considering custom-built operational core systems on enterprise platforms, rather than relying purely on traditional packaged PSA (Professional Services Automation) vendors. This approach is illustrated by ITECH Solutions’ decision to migrate from a legacy PSA system—augmented by multiple third-party tools—to a platform built on Microsoft Dynamics, leveraging TechStack as a custom layer for MSP functionality.A key development discussed is ITECH

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00:13:42

Insightful and Workflow Analytics: Measuring Activity...

Business of Tech: Daily MSP News & IT Services Analysis ·

2026/10/02

The episode highlights a structural gap between projected AI-driven revenue in the channel and the concrete operational changes needed to capture measurable ROI. Industry surveys from Informa MSP 501, McKinsey, and PwC consistently show that while AI adoption rates among managed service providers (MSPs) are high, few organizations have restructured workflows or business models around AI. The focus remains on superficial activity tracking rather than genuine business transformation.The MSP 501 survey

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00:40:34

Ryan Morris on Why Vendor Growth Depends on Active,...

Business of Tech: Daily MSP News & IT Services Analysis ·

2026/10/01

The primary structural shift examined is the move from vendor emphasis on quantity of partner recruitment toward a more nuanced focus on partner program health, accountability, and mutual business growth. This mechanism is highlighted by Dr. Backup’s acquisition by Hosvara, with the new owner, a former MSP operator, prioritizing the effectiveness and sustainability of the partner base rather than purely expanding headcount. The episode examines how explicit disclosure and management of active versus

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00:13:20

Default Security Choices Leave MSPs Exposed as AI...

Business of Tech: Daily MSP News & IT Services Analysis ·

2026/09/30

A key structural shift identified is the growing governance gap created by AI agents that evade traditional detection and accountability measures. This challenge is exemplified by Meta’s Muse and OpenAI agents, which do not self-identify during interactions. As a result, determining agent activity and risk now depends on disclosures by the developer rather than the asset owner or operator, limiting the visibility and control of MSPs and IT service providers.One consequential incident involved an

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00:14:04

Measuring False Guidance: The Untracked Risk in...

Business of Tech: Daily MSP News & IT Services Analysis ·

2026/09/29

The episode highlights a structural shift toward operational reliance on AI agents as service staff rather than support tools, raising new questions about skill degradation, checking mechanisms, and accountability in managed service environments. Shield Technology Partners and Microsoft exemplify this trend by deploying AI operating systems—Shield's Forge and Microsoft's Autopilot—that independently handle substantial parts of the IT support process, in some cases from intake to ticket closure,

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00:26:49

AI-Driven vCISO Platforms Create Pricing and...

Business of Tech: Daily MSP News & IT Services Analysis ·

2026/09/28

The primary structural mechanism examined concerns the shift in cybersecurity operations for MSPs driven by increased automation and AI-powered platforms, specifically as evidenced by Cynomi’s virtual CISO (vCISO) solutions. This transition signals a migration of both operational workload and expertise from traditional, manual processes toward digitally augmented roles, with significant implications for how accountability and liability are managed within managed security services.According to the

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00:16:16

Why Aurora AI Agents Only Reduce Ticket Load When...

Business of Tech: Daily MSP News & IT Services Analysis ·

2026/09/27

The structural mechanism highlighted in this episode is the gap between optimism for artificial intelligence (AI) in IT operations and the actual integration of AI as a core operational tool among MSPs. The conversation centers on Auvik’s market activity, including data from its 2026 IT Trends Report and the launch of its Aurora AI agent suite, which aims to operationalize AI in network management. This shift surfaces a reliance on vendor-developed automation tools to address efficiency constraints,

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00:28:23

AI Margins and MSP Growth: Dr. Gleb Tsipursky on...

Business of Tech: Daily MSP News & IT Services Analysis ·

2026/09/26

The ongoing adoption of AI in managed services is exerting downward pressure on service margins and changing how value is delivered and retained. According to discussion with Dr. Gleb Tsipursky and analysis of case studies such as ImageQuest, even MSPs serving small organizations (as few as 8-50 staff) must address this shift. AI-based automation and process optimization reduce the operational cost of service delivery but also risk eroding the provider's pricing power, forcing firms to reevaluate

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00:13:37

Active vs. Joined Partners: The Overlooked Risk in...

Business of Tech: Daily MSP News & IT Services Analysis ·

2026/09/25

Vendor channel programs are structurally organized around metrics and incentives that prioritize initial partner acquisition over long-term partner viability or growth. Analysis of policies and practices at firms like Dr. Backup, Microsoft, and Arctic Wolf highlights that most vendors track and publish partner sign-ups (“joined”) but seldom disclose the ongoing, active partner count or revenue growth among partners. This structural approach creates a visibility gap and misaligns vendor and partner

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00:42:38

Flamingo’s AI Token Pricing Model Shifts Margin Risk...

Business of Tech: Daily MSP News & IT Services Analysis ·

2026/09/24

A growing shift is materializing in the IT services market as software vendors move away from traditional fixed software pricing and towards models based on AI token consumption, effectively redefining the sources of margin and exposing providers to variable cost structures. This transition is embodied by companies such as Flamingo, which has constructed an MSP software suite and prices access at $1 per device per month, including a token allotment, but whose actual profits—and partner costs—are

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00:13:11

Vendors Build the Meter: MSP Risk Rises as AI Usage...

Business of Tech: Daily MSP News & IT Services Analysis ·

2026/09/23

The core structural shift discussed is the transition from fixed, seat-based licensing models to metered, consumption-based pricing for artificial intelligence tools. Driving forces behind this change are vendor margin pressures and increasing alignment between costs and actual resource utilization, which is resulting in a measurable difference on invoices rather than announced policy changes. Gartner’s projections indicate that by 2028, over 35% of new corporate legal technology spending will

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00:13:45

Insurers Exclude AI From Liability: What CG 40 47...

Business of Tech: Daily MSP News & IT Services Analysis ·

2026/09/22

The episode details a structural shift in the allocation of risk and liability for artificial intelligence within commercial insurance policies, driven by changes in standard policy language published by Verisk’s ISO division. Insurance carriers are now able to explicitly exclude claims related to generative AI from general liability coverage using endorsements such as CG 40 47, CG 40 48, and CG 35 08, which attach at policy renewal without formal notification. This trend is not confined to general

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00:39:18

All-in-One or Best-of-Breed? The Real Tradeoffs in...

Business of Tech: Daily MSP News & IT Services Analysis ·

2026/09/20

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

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00:20:19

Dave Cava on Why Operational Maturity, Not AI,...

Business of Tech: Daily MSP News & IT Services Analysis ·

2026/09/19

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

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00:15:09

Entry-Level Tech Roles Shrink with Automation; Senior...

Business of Tech: Daily MSP News & IT Services Analysis ·

2026/09/18

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

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2,058 results

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