AI Growth, Cybersecurity Challenges, and New Programs for MSPs

[00:00:02] It's Wednesday, October 16th, 2024, and I'm Dave Sult. Four things to know today.

[00:00:07] AI growth fueled by high expectations, but Gartner predicts one-third of projects may be abandoned by 2025.

[00:00:14] The UK faces rising cyber threats, the NCSC urges stronger MFA use, and ICO investigations are hitting record lows.

[00:00:23] TD Cynics and Breach Secure Now help channel partners and providers overcome AI skills gaps with new tailored programs,

[00:00:30] and PAX 8 unveils Voyager Alliance program to meet diverse growth needs and emphasizes marketplace-driven sales.

[00:00:38] This is the Business of Tech.

[00:00:41] A recent Accenture survey reveals that nearly two-thirds of businesses plan to intensify their focus on AI and automation investments over the next two years,

[00:00:51] as they report that these initiatives meet or exceed expectations.

[00:00:54] The survey included 2,000 executives and found that companies with fully modernized AI-driven processes experience higher revenue growth and productivity than their peers.

[00:01:05] However, organizations face significant challenges, including gaps in data readiness and infrastructure and skill shortages that hinder successful AI adoption.

[00:01:15] Gartner predicts that by the end of 2025, nearly one-third of generative AI projects may be abandoned after the proof-of-concept stage,

[00:01:23] due to rising costs and unclear business value.

[00:01:27] The data center industry is experiencing rapid growth, driven by the increasing demands of AI,

[00:01:32] with the global market projected to soar from $301 billion to $622 billion by 2030, according to P&S Intelligence.

[00:01:42] Current data centers consume about 4% of the total power in the U.S., a figure expected to double to 9% by 2030, as noted by the Electric Power Research Institute.

[00:01:54] While startups are emerging to address the energy crisis and environmental impact of data centers, experts warn that adopting new technologies may be challenging due to the industry's high costs and concentrated customer base.

[00:02:06] Microsoft Azure's Chief Technology Officer Mark Russovich warns that U.S. data centers supporting generative AI, such as ChatGPT, are approaching size limits due to constraints from the aging energy grid.

[00:02:18] As these facilities could soon consume multiple gigawatts of power, equivalent to the energy needs of hundreds of thousands of homes, the industry may need to develop new methods to connect multiple data centers.

[00:02:30] The current trend requires AI models to be trained within a single data center containing tens of thousands of processors, making energy demands critical.

[00:02:39] Microsoft has initiated projects to bolster grid capacity, including a $30 billion fund for AI infrastructure with BlackRock and a deal to reopen the Three Mile Island nuclear power plant.

[00:02:50] However, the path to overhauling the grid is slow and companies cannot afford to wait for governmental funding.

[00:02:56] In a recent discussion with Charlotte Keenan, head of Corporate Engagement International at Goldman Sachs, the impact of AI on small and medium-sized enterprises was highlighted, revealing significant opportunities for growth and efficiency.

[00:03:09] Nearly 50% of small businesses involved in Goldman Sachs' program are already utilizing AI to optimize performance.

[00:03:16] At the same time, a survey conducted by the firm indicates that 80% of small businesses are either using or planning to use generative AI tools within the year.

[00:03:25] Despite these advancements, challenges remain, with a need for understanding AI technology identified as a primary barrier to adoption.

[00:03:34] Keenan emphasizes the necessity for practical training and collaboration among small businesses to bridge this knowledge gap.

[00:03:41] Financial incentives from the government are deemed essential, with 80% of small businesses supporting the need for new funding initiatives to foster AI innovation.

[00:03:50] Why do we care?

[00:03:52] While AI adoption is surging, infrastructure and cost concerns could limit its full potential.

[00:03:58] Companies that can help bridge the gap between AI aspirations and practical implementation, especially around data readiness, skill development, and energy efficiency, will find themselves well positioned.

[00:04:08] However, providers must be cautious of inflated expectations and guide clients towards sustainable value-driven AI projects.

[00:04:17] Take the CIO advice. Establish clear frameworks and metrics to guide AI initiatives effectively.

[00:04:26] Today's episode is supported by CoreView.

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[00:04:51] This powerful platform enables automatic reporting and remediation, ensuring optimal performance and security.

[00:04:59] The best part? You achieve this high level of service without the need for a large workforce, allowing you to focus on growing your business through efficiency.

[00:05:08] Want to know more? Visit coreview.com slash MSP and find out more.

[00:05:16] The UK's National Cybersecurity Center has issued updated guidelines for implementing multi-factor authentication in response to cyber threat actors' rising interception of MFA keys.

[00:05:28] The guidance emphasizes the importance of selecting suitable MFA solutions and providing adequate user training.

[00:05:36] NCSC's recommendations aim to balance strong authentication benefits while minimizing user friction, suggesting that authentication prompts should be context-sensitive.

[00:05:46] As organizations face increasing threats from ransomware and phishing attacks, the implementation of MFA and identity management tools has become essential for enhancing security.

[00:05:56] And keeping our attention across the pond a moment, as ransomware attacks in the UK reach unprecedented levels, the Information Commissioner's Office, or ICO, is investigating fewer incidents than ever, with only 87 out of 1,253 reported incidents last year, representing less than 7%.

[00:06:17] In the first half of this year, just 19 out of 440 incidents were investigated, underlying a concerning trend as the ICO's capacity appears to dwindle.

[00:06:28] This contrasts sharply with 2019 and 2020, where over 99% of incidents were probed.

[00:06:35] Despite a commitment to enhance awareness of cyber risks and improve organizational practices, the ICO faces challenges in effectively enforcing data protection laws.

[00:06:44] The British government plans to introduce a new cybersecurity and resilience bill next year to strengthen regulations and mandatory incident reporting.

[00:06:52] However, initial proposals for more stringent oversight were shelved amid political changes.

[00:06:59] Why do we care?

[00:07:01] Well, the new updated MFA guidelines and the growing ransomware threats demand immediate attention from businesses.

[00:07:07] However, the ICO's reduced capacity to investigate incidents signals a temporary lapse in regulatory pressure.

[00:07:14] For IT providers, this duality presents a chance to lead by example, helping clients implement best practices like MFA and proactive security measures now, before regulatory scrutiny tightens again with the upcoming cybersecurity and resilience bill.

[00:07:30] And yes, that's for British listeners.

[00:07:32] Don't be surprised to see the same movements in the US.

[00:07:38] TDCynics has launched the Destination AI Practice Accelerator to assist partners in enhancing their AI-driven go-to-market strategies.

[00:07:46] This initiative comes in response to a growing interest in AI, as nearly 50% of channel partners plan to offer AI solutions within the next two years, according to TDCynics's Direction of Technology report.

[00:07:57] The program provides tailored support, resources and six-week training courses focused on specific AI solutions.

[00:08:06] TDCynics is recruiting partners for a program centered on generative AI for business automation, sponsored by Intel.

[00:08:13] Breach Secure Now, B-S-N, has launched the Artificial Intelligence Readiness Innovation Assessment, or IRIA, on October 11, 2024, to support MSPs in helping small and medium-sized businesses integrate AI into their operations.

[00:08:28] The tool focuses on enhancing decision-making, productivity, and human AI collaboration.

[00:08:34] Atera partnered with GoTo to offer its Mirador multi-tenant mobile device management solution to Atera's customers.

[00:08:41] This collaboration aims to enhance efficiency, speed, cybersecurity, and the quality of work by providing a comprehensive toolkit for managing a diverse range of endpoints, including mobile devices, tablets, and laptops.

[00:08:54] Adobe has launched the Firefly video model, an AI tool capable of generating video from text prompts, positioning itself against competitors like OpenAI's Sora, ByteDance, and Meta.

[00:09:05] The model is designed to use legally sourced data, facilitating commercial use of its output.

[00:09:11] While specific customer usage for the video tool remains undisclosed, partnerships have been established with PepsiCo's Gatorade for custom bottle designs and Mattel for Barbie packaging.

[00:09:23] According to Chief Technology Officer Eli Greenfield, Adobe focuses on integrating the tool seamlessly with existing footage, emphasizing detailed control over video production elements.

[00:09:33] And while not quite a product announcement, this one fits.

[00:09:37] Ingram Micro has announced plans to go public, filing with the SEC to list its shares on the New York Stock Exchange under the ticker symbol INGF.

[00:09:47] The company, based in Irvine, California, reported $48 billion in net sales worldwide in 2023, despite a slight revenue decline.

[00:09:55] With operations in 57 countries and a workforce of over 24,000, including 1,200 software engineers, Ingram Micro serves more than 161,000 customers and collaborates with over 1,500 vendor partners.

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

[00:10:11] TD Cynics has seen the skills gap and is offering solutions to bridge the gap.

[00:10:15] And that's the thinking with BSN's offering too.

[00:10:18] That's why we care.

[00:10:21] Pax 8 hosted the Beyond EMEA Partner Conference in Berlin, attracting 500 partners and emphasizing innovation, AI, and collaboration.

[00:10:31] During the event, Ryan Walsh, Chief Strategy Officer, highlighted key insights from a Channelnomics report titled Digital Sales Evolution in the European Channel,

[00:10:40] revealing that 86% of European partners anticipate increased marketplace use for sourcing and sales in the next three to five years.

[00:10:49] The report also indicated that 45% of partners expect higher demand for professional services due to marketplace adoption.

[00:10:57] Additionally, Pax 8 announced its new Voyager Alliance Partner Program designed to provide tailored experiences for MSPs at various growth stages.

[00:11:06] Its revenue requirements range from 499 euros at the entry level to over 90,000 euros at the galactic tier.

[00:11:14] This flexible approach aims to meet the evolving needs of providers as they specialize and scale their operations.

[00:11:21] Why do we care?

[00:11:23] Pax 8 has grown large enough to need to stratify its offerings.

[00:11:27] As marketplaces grow in importance, service providers must be ready to adapt new sales and procurement models that streamline purchasing processes and offer clients more flexibility.

[00:11:38] Those who master marketplace dynamics, knowing how to position their services, offer support, and bundle solutions effectively, will gain a competitive advantage.

[00:11:46] 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.

[00:12:02] Huntress is focused on elevating SMBs and MSPs around the world.

[00:12:08] 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.

[00:12:20] And the proof is the execution.

[00:12:22] Huntress is the number one rated EDR for SMBs on G2.

[00:12:28] Want to know more about the platform?

[00:12:30] Visit Huntress.com slash MSP Radio to learn more.

[00:12:37] Thanks for listening.

[00:12:38] Today is National Feral Cat Day, Global Cat Day, plus National Bosses Day, National Bra Day, and National Department Store Day.

[00:12:47] End it all with National Liqueur Day.

[00:12:49] I'll be doing two live broadcasts as part of SMB Tech Fest starting tomorrow on October 17th and 18th.

[00:12:55] So make sure to sign up and join the event, smbtechfest.com slash go slash sobel.

[00:13:01] Link in the show notes.

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