AI Adoption Challenges, Cybersecurity Threats, Kaseya on Automation, and Windows Server 2025 Launch

[00:00:01] It's Tuesday, November 5th, 2024, and I'm Dave Sobel. 4 things to know today.

[00:00:07] Kindle Report reveals a struggle with aging IT as AI adoption soars, but that ROI falls short.

[00:00:14] Voice-based AI scams are rising as a study shows ChatGPT vulnerability and new tactics on Microsoft's Teams and spear-phishing surge.

[00:00:22] And at Datocon, Kaseya emphasizes automation as core to MSP efficiency, parallel to Runway's AI-enhanced sales tactics, and Microsoft launches Windows Server 2025.

[00:00:34] This is the business of tech.

[00:00:39] According to a recent Kindle report that surveyed 3200 C-suite executives, executives are increasingly concerned about aging IT systems.

[00:00:47] While 90% believe their technology is top-notch, nearly two-thirds admit that outdated infrastructure is a significant issue, with 44% of critical IT systems nearing or at end of life.

[00:00:58] Michael Bradshaw, Kindle's SVP, emphasizes the challenges of identifying tech debt without proper asset management, likening it to an archaeological dig.

[00:01:08] Despite enthusiasm for digital transformation, many executives struggled to balance investment in new technologies with maintaining existing systems.

[00:01:15] The report also revealed that while 75% are investing in AI and machine learning, less than half report a positive return on investment.

[00:01:23] Concerns about cyber attacks are prevalent, with two-thirds of executives feeling unprepared to manage these risks.

[00:01:29] A recent IDC report highlights the growing trend of cloud repatriation, driven primarily by organizations facing unexpected costs and performance issues in cloud environments.

[00:01:39] The report reveals that 50% of companies spent more on cloud services than anticipated last year, with 59% expecting similar overruns this year.

[00:01:49] Notably, about only 8-9% of organizations planned full workload repatriation, with most moving specific workloads back in-house.

[00:01:59] The trend has been exemplified by SaaS company 37 Signals, which announced it will save $10 million over five years by transitioning away from cloud services to invest in its own hardware.

[00:02:10] As businesses grapple with rising costs and complexities in managing multi-cloud setups, they're increasingly considering the potential benefits of repatriation, balancing cost savings with the need for flexibility and innovation.

[00:02:24] Why do we care?

[00:02:26] Well, 75% of enterprises are implementing or planning AI.

[00:02:30] The figure is high, but it's essential to differentiate between various levels of adoption.

[00:02:35] Many organizations may claim they're working on AI initiatives, but a substantial portion could be limited to small-scale experiments or pilot programs, rather than full-scale implementations that truly impact business operations.

[00:02:48] The data here reveals a significant interest in AI, but doesn't confirm that adoption is uniformly successful or transformative.

[00:02:56] For providers, it signals potential opportunities in consulting, implementation, and ongoing support for those AI initiatives.

[00:03:02] But caution is warranted.

[00:03:04] Service providers should approach these projects with clear expectations management to avoid overpromising on what AI could realistically achieve within existing infrastructure constraints.

[00:03:15] And these insights reinforce the importance of aligning with transformation-driven budgets, honing those AI capabilities with realistic expectations, and supporting security demands without letting them dominate strategic investments.

[00:03:29] With as many breaches and security concerns as I report on this show, it should be obvious that cybersecurity is not just about technology, but also the human expertise needed to interpret and respond to complex threats.

[00:03:45] Huntress is focused on elevating SMBs and MSPs around the world.

[00:03:50] Huntress has a suite of fully-managed cybersecurity solutions powered by a 24x7 human-led SOC dedicated to continuous monitoring, expert investigation, and rapid response.

[00:04:02] And the proof is the execution.

[00:04:05] Huntress is the number one rated EDR for SMBs on G2.

[00:04:10] Want to know more about the platform?

[00:04:13] Visit Huntress.com slash MSP Radio to learn more.

[00:04:19] University of Illinois' Urbana at Champaign researchers have demonstrated that OpenAI's CHAC GPT-4-0 can be exploited to conduct autonomous, voice-based financial scams, achieving success rates between 20 to 60%.

[00:04:34] The study highlights various scam methods, including bank transfers and credential theft, with the cost of executing these scams averaging just $0.75 per successful attempt.

[00:04:46] Notably, credential theft from Gmail had a success rate of 60%.

[00:04:51] OpenAI has responded, stating that their latest model, O-1, incorporates better defenses against such abuses.

[00:04:58] They emphasize the importance of research like that conducted by UIUC in enhancing safety measures against malicious use of AI technologies.

[00:05:07] And security researchers have issued a warning about a new threat campaign where hackers impersonate IT support on Microsoft Teams to deceive users.

[00:05:16] A report from RealeQuest highlights a major shift in tactics since late October 2024, moving from mass email spam, where about 1,000 emails were sent in just 50 minutes, to direct messaging on Teams.

[00:05:30] The attackers, believed to be operating from Russia, aim to convince users to download remote access tools like AnyDesk, allowing them to deploy ransomware.

[00:05:39] To counter these tactics, organizations are advised to disable communication from external users on Teams and implement training programs to raise awareness of evolving social engineering threats.

[00:05:50] And the Cybersecurity and Infrastructure Security Agency has issued a warning to federal executives about a large-scale spear phishing campaign orchestrated by foreign actors, who are using malicious remote desktop protocol files to gain unauthorized access to networks.

[00:06:05] CISA has recommended 10 protective measures for organizations.

[00:06:09] Why do we care?

[00:06:11] Well, lots of tactical threats to be aware of today.

[00:06:14] Those voice-based scams are increasing, and I expect we will see more of those to come.

[00:06:20] At last week's DattoCon, CASEA emphasized AI-powered automation, projecting that by 2026, up to 70% of repetitive tasks performed by managed service providers will be automated.

[00:06:32] Rich Freeman at Channelholic noted this in his newsletter.

[00:06:36] Quote,

[00:06:37] The development that has surprised CASEA itself, at least as much as me, AI and automation rather than pricing turned out to be the most favorite part of CASEA 365 endpoint, according to Fred Vokula, CEO of CASEA, among the roughly 6,800 MSPs that have deployed it to date.

[00:06:53] We expect the same with user, he says. Automation is the name of the game.

[00:06:57] Which is why Chief Product Officer Ranjan Singh and IT Ops Suite General Manager Nadir Merchant both spoke at length during keynotes this week about recent and forthcoming updates to CASEA's AI technologies, which now include the Cooper Insights Performance Optimization Tool, the Cooper Bots RPA platform, and the generative AI-powered Cooper Copilots family.

[00:07:21] Vocala has great expectations about the impact these tools will have too.

[00:07:25] We believe that by the end of 2026, upwards of 70% of the repetitive and mundane things that an MSP does, which is most of what they have to do, will be completely automated by a Cooper bot and then proactively driven by a Cooper copilot, he says."

[00:07:39] End quote.

[00:07:40] And in recent developments in sales automation, finance software startup Runway has successfully implemented an AI tool that customizes outreach to potential corporate clients.

[00:07:51] Built using technology from OpenAI, this tool scans customer websites and drafts personalized emails, incorporating intentional typos to enhance realism.

[00:08:01] According to CEO Si Kui Chen, this innovative solution, created in just one weekend, has significantly increased the efficiency for their small sales team, saving them dozens of hours each week.

[00:08:12] The advancement reflects a growing trend in leveraging AI to optimize sales processes and improve customer engagement.

[00:08:19] Why do we care?

[00:08:21] I'm a bit surprised Rich was surprised.

[00:08:23] The automation capabilities of these tools, and in theory the integrated nature of them, is the most powerful portion.

[00:08:30] AI-driven, self-healing, data-driven insights is the actual holy grail of IT services versus the mythical single-plane blacks.

[00:08:39] Which is why I paired with a parallel feature over in sales.

[00:08:45] Optimization of processes is the key on lock, and we're watching for more of this.

[00:08:52] Microsoft has announced the general availability of Windows Server 2025, marking its latest long-term servicing channel release.

[00:08:59] This new version introduces significant advancements, including a redesigned desktop shell that mirrors Windows 11, and enhanced hybrid cloud capabilities.

[00:09:08] Key features include live hot-patching for streamline updates, major improvements for Active Directory, and over 350 pre-configured security settings to bolster system security.

[00:09:18] Windows Server 2025 will be supported until October 2029, and is positioned as a robust solution for on-premises and hybrid cloud deployments.

[00:09:27] And KnowBefore has launched a complimentary cybersecurity training module designed to enhance safety during the hiring and onboarding process.

[00:09:36] This initiative follows a thwarted infiltration attempt by a North Korean hacker, which KnowBefore's security team successfully neutralized in just 25 minutes, preventing any data loss.

[00:09:47] The module addresses critical security risks identified during a thorough evaluation of the hiring process, helping organizations mitigate threats associated with recruitment.

[00:09:56] It includes insights from KnowBefore staff who encountered the infiltration first-hand, and aims to raise awareness about hiring-based security threats while equipping HR and IT professionals with practical knowledge.

[00:10:09] Why do we care?

[00:10:11] KnowBefore is doing their best to leverage that potential insider breach.

[00:10:15] And increasingly, Windows Server announcements are less important as they are replaced by cloud services as illustrated by the hybrid capabilities.

[00:10:23] Then again, on-prem was in that top story.

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[00:11:24] Thanks for listening. It's Guy Fawkes Day for my UK listeners.

[00:11:28] Balloon Day in Panama, and of course, Election Day here in the United States.

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