Business of Tech: Daily 10-Minute IT Services Insights

00:13:34

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

Business of Tech: Daily 10-Minute IT Services Insights ·

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 10-Minute IT Services Insights ·

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 10-Minute IT Services Insights ·

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 10-Minute IT Services Insights ·

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 10-Minute IT Services Insights ·

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 10-Minute IT Services Insights ·

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 10-Minute IT Services Insights ·

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 10-Minute IT Services Insights ·

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 10-Minute IT Services Insights ·

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 10-Minute IT Services Insights ·

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 10-Minute IT Services Insights ·

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 10-Minute IT Services Insights ·

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 10-Minute IT Services Insights ·

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 10-Minute IT Services Insights ·

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 10-Minute IT Services Insights ·

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 10-Minute IT Services Insights ·

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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00:36:22

Jay McBain on Why AI and SaaS Marketplaces Are...

Business of Tech: Daily 10-Minute IT Services Insights ·

2026/09/17

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

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00:13:49

Loss of Vendor-Free MSP Spaces: ASCII Acquisition...

Business of Tech: Daily 10-Minute IT Services Insights ·

2026/09/16

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

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00:12:36

AI Channel Programs Shift Forecasting Risk to MSPs as...

Business of Tech: Daily 10-Minute IT Services Insights ·

2026/09/15

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

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00:13:26

Reseller, MSP, Services Merged: Structural Risks and...

Business of Tech: Daily 10-Minute IT Services Insights ·

2026/09/14

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

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