Amazon's Office Return, Microsoft AI Updates, CrowdStrike Issues, and AI in Customer Service

[00:00:02] [SPEAKER_00]: It's Tuesday, September 17, 2024, and I'm Dave Solb before things to new today.

[00:00:08] [SPEAKER_00]: Amazons are acquiring full return to the office by 2025, tightening their workforce with cuts

[00:00:13] [SPEAKER_00]: to middle management. Microsoft enhances 365 co-pilot with autonomous agents, GPT-4, O-integration,

[00:00:21] [SPEAKER_00]: and new collaboration features.

[00:00:23] [SPEAKER_00]: X-Crowed Strike Employees cite a culture of speed over quality, leading to that July

[00:00:29] [SPEAKER_00]: 2024 outage, and sales forces age at force, and job-race clear speech showcased the

[00:00:36] [SPEAKER_00]: growing role of AI in customer service automation.

[00:00:40] [SPEAKER_00]: This is the Business of Tech.

[00:00:44] [SPEAKER_00]: This story shot around my news feed yesterday.

[00:00:47] [SPEAKER_00]: Amazon will require corporate employees to return to the office five days a week, starting

[00:00:52] [SPEAKER_00]: January 2025, as stated by CEO Andy Jassie, who emphasized the benefits of in-person collaboration.

[00:01:01] [SPEAKER_00]: This decision follows a previous requirement of three days in the office and aims to strengthen

[00:01:05] [SPEAKER_00]: company culture.

[00:01:07] [SPEAKER_00]: Additionally, Amazon plans to reduce the number of middle managers by increasing the ratio

[00:01:12] [SPEAKER_00]: of individual contributors to managers by 15% by the end of March.

[00:01:18] [SPEAKER_00]: Experts warned that such mandates could lead to increased employee turnover and highlight a

[00:01:23] [SPEAKER_00]: management crisis in corporate America. While some younger workers may benefit from in-office

[00:01:28] [SPEAKER_00]: interactions, the overall trends suggest that strict return to office policies could harm

[00:01:34] [SPEAKER_00]: productivity and employee satisfaction.

[00:01:38] [SPEAKER_00]: Why do we care?

[00:01:39] [SPEAKER_00]: Let me give you a timeline first. In late 2022 and throughout 2023, Amazon initiated the

[00:01:46] [SPEAKER_00]: largest layoffs in its history, adding more than 27,000 jobs across almost every area of

[00:01:52] [SPEAKER_00]: the company. This was part of a broader trend of layoffs in the tech industry during that period.

[00:01:58] [SPEAKER_00]: Even after the major layoff waves, Amazon has contributed to trim its workforce through smaller

[00:02:04] [SPEAKER_00]: targeted cuts in various divisions. In 2024, Amazon laid off hundreds of workers in its cloud

[00:02:10] [SPEAKER_00]: division, AWS, affecting sales, marketing and store technology teams. The company is also cut

[00:02:16] [SPEAKER_00]: jobs and units like Twitch, audible by with prime, prime, video and MGM studios.

[00:02:22] [SPEAKER_00]: And Amazon fresh laid off hundreds of store workers in zone lead roles.

[00:02:27] [SPEAKER_00]: The approach to layoffs has been characterized by multiple rounds of cut spread over time,

[00:02:31] [SPEAKER_00]: rather than one large reduction, targeting specific departments or units for streamlining and

[00:02:36] [SPEAKER_00]: combining layoffs with hiring freezes in certain areas.

[00:02:41] [SPEAKER_00]: Jassie and his leadership team are not stupid. They are not malicious,

[00:02:45] [SPEAKER_00]: and they are aware of the data. They are making it easier to further reduce headcount.

[00:02:50] [SPEAKER_00]: Amazon stock is up nearly 180% over its pre-pandemic numbers, so they don't really want to go back

[00:02:58] [SPEAKER_00]: to pre-pandemic everything. Considering a colleague was excited to rehire staff that had gone

[00:03:04] [SPEAKER_00]: to Amazon, let's acknowledge what this is. Amazon's decision is not just about in-person collaboration.

[00:03:11] [SPEAKER_00]: It's a calculated move to trim workforce costs indirectly while managing talent retention

[00:03:17] [SPEAKER_00]: and maintaining productivity. Today's episode is supported by CoreView. Your customers need your

[00:03:26] [SPEAKER_00]: software 365 expertise and CoreView has the only M365 management platform designed for MSPs.

[00:03:34] [SPEAKER_00]: Managed hundreds of tenants, automated manual tasks and monitor compliance,

[00:03:38] [SPEAKER_00]: all while intelligently comparing to the baseline. With a no-code control approach,

[00:03:43] [SPEAKER_00]: CoreView revolutionizes your Microsoft 365 administration. This powerful platform enables

[00:03:49] [SPEAKER_00]: automatic reporting and remediation, ensuring optimal performance and security.

[00:03:54] [SPEAKER_00]: The best part? You achieve this high level of service without the need for a large workforce,

[00:04:00] [SPEAKER_00]: allowing you to focus on growing your business, efficiency. Want to know more?

[00:04:05] [SPEAKER_00]: Visit CoreView.com slash MSP and find out more.

[00:04:12] [SPEAKER_00]: Microsoft announced updates to its Microsoft 365 Co-Pilot, including the ability to create

[00:04:22] [SPEAKER_00]: co-pilot pages and enhanced app-specific features. Key updates include co-pilot in Excel for

[00:04:29] [SPEAKER_00]: natural language queries, a narrative builder for PowerPoint, meeting chat summaries and teams,

[00:04:35] [SPEAKER_00]: and new capabilities in one drive and outlook. The updates also introduce biz chat for better

[00:04:41] [SPEAKER_00]: data integration and custom co-pilot agents for those workflows. Microsoft confirmed co-pilot

[00:04:47] [SPEAKER_00]: now utilizes the advanced GPT-4O model for improved performance. An unrelated Microsoft has launched

[00:04:54] [SPEAKER_00]: Office LTSC 2024 for Windows and Mac OS aimed at commercial and government customers needing

[00:05:01] [SPEAKER_00]: long-term support without internet connectivity. This version includes improved performance,

[00:05:08] [SPEAKER_00]: security and accessibility along with new Excel functionalities. It includes core apps like

[00:05:13] [SPEAKER_00]: Excel and PowerPoint, but excludes Microsoft publisher which will be retired after October 2026.

[00:05:21] [SPEAKER_00]: Office LTSC 2024 will receive security updates for five years and is available for existing

[00:05:27] [SPEAKER_00]: volume licensed customers with general availability starting October 1st 2024.

[00:05:33] [SPEAKER_00]: Why do we care? The ability to create autonomous AI agents for workflows in co-pilot is

[00:05:39] [SPEAKER_00]: shift. This enables businesses to automate complex repetitive tasks across different departments,

[00:05:45] [SPEAKER_00]: such as HR or finance, potentially reducing manual workloads and improving efficiency.

[00:05:50] [SPEAKER_00]: I'm also increasingly convinced that an application that resonates with LLMs is data analysis

[00:05:56] [SPEAKER_00]: and using natural language. MSPs should help organizations better utilize these tools,

[00:06:02] [SPEAKER_00]: offering training or customization to get the most out of these features, particularly for non-technically

[00:06:07] [SPEAKER_00]: users. This application is the use case to consider most. As reported in some

[00:06:15] [SPEAKER_00]: before, ex-employees of CrowdStrike reported rising technical errors and a culture prioritizing

[00:06:21] [SPEAKER_00]: speed over quality leading up to that significant software outage in July of 2024,

[00:06:27] [SPEAKER_00]: affecting millions and costing companies billions. Despite complaints about excessive workloads

[00:06:32] [SPEAKER_00]: in the inadequate training, CrowdStrike disputed these claims, asserting its commitment to quality control.

[00:06:39] [SPEAKER_00]: Cohesity is expanded its partnership with CrowdStrike to enhance threat detection and response

[00:06:44] [SPEAKER_00]: by integrating Cohesity's data protection capabilities with CrowdStrike's threat intelligence.

[00:06:49] [SPEAKER_00]: The collaboration aims to improve cybersecurity for backup and recovery solutions,

[00:06:54] [SPEAKER_00]: enabling customers to identify threats and backup copies more accurately.

[00:06:58] [SPEAKER_00]: The integration provides specific forensic capabilities and allows for stealthy threat hunting

[00:07:03] [SPEAKER_00]: minimizing the advantages of attackers. And CrowdStrike has extended its partnership with one

[00:07:09] [SPEAKER_00]: password to enhance cybersecurity solutions for SMBs. This collaboration integrates one password

[00:07:15] [SPEAKER_00]: extended access management with CrowdStrike Falcon Go, providing advanced security features to

[00:07:20] [SPEAKER_00]: 150,000 customers. And Huntress has surpassed $100 million in annual recurring revenue

[00:07:27] [SPEAKER_00]: achieving centaur status by providing cybersecurity solutions for small and midsize enterprises.

[00:07:33] [SPEAKER_00]: The company's secure is over 3 million endpoints. Why do we care?

[00:07:39] [SPEAKER_00]: The report of rising technical errors and significant outage back in July suggests underlying issues

[00:07:45] [SPEAKER_00]: in CrowdStrike's operational practices, especially with a culture of prioritizing speed over quality.

[00:07:50] [SPEAKER_00]: If you want software vendors to change behavior, hold them accountable. That's what Sissa is working

[00:07:57] [SPEAKER_00]: to do. Consumers are increasingly comfortable with AI in customer service,

[00:08:05] [SPEAKER_00]: appreciating benefits like 24 by 7 availability and quick response times. However, most

[00:08:10] [SPEAKER_00]: still prefer live agents for complex issues with concerns about misunderstanding and

[00:08:15] [SPEAKER_00]: alliance on technology. While half believe AI has improved service, younger generations show

[00:08:21] [SPEAKER_00]: more optimism about its future role. So you understand why sales force is launching agent force,

[00:08:27] [SPEAKER_00]: a suite of AI agents designed to automate customer interactions and improve efficiency in business

[00:08:32] [SPEAKER_00]: functions like customer service and sales. CEO Mark Benioff emphasizes that these agents can perform

[00:08:39] [SPEAKER_00]: actions based on inquiries, aiming to enhance customer engagement while reducing reliance on human

[00:08:44] [SPEAKER_00]: representatives. And Jabra has launched clear speech, an AI powered solution designed to enhance

[00:08:51] [SPEAKER_00]: audio quality in contact centers by removing background noise and improving speech clarity.

[00:08:57] [SPEAKER_00]: This technology aims to reduce distractions during calls, improving customer and agent experiences

[00:09:02] [SPEAKER_00]: and can decrease average handle time by over 30%. Clear speech is integrated into engage

[00:09:10] [SPEAKER_00]: AI voice coaching software, it is available as a free upgrade for current engage AI customers,

[00:09:16] [SPEAKER_00]: compatible with all Jabra headsets. And while I'm on launches andthropic has launched the

[00:09:22] [SPEAKER_00]: Claude Enterprise Plan, targeting businesses with enhanced administrative controls and security

[00:09:27] [SPEAKER_00]: features to compete with OpenAI's chatGPT Enterprise. This new subscription allows companies

[00:09:33] [SPEAKER_00]: to upload proprietary knowledge for analysis and assistance offering a larger context window

[00:09:38] [SPEAKER_00]: with 500,000 tokens and GitHub integration for engineering teams. While anthropic aims to catch up

[00:09:45] [SPEAKER_00]: with OpenAI, the pricing remains undisclosed and broader adoption is critical for offsetting those

[00:09:51] [SPEAKER_00]: operational costs. By do we care? With Salesforce launching agent force, AI agents are becoming

[00:09:59] [SPEAKER_00]: more embedded in customer interaction workflows, the rise of AI automation and customer service

[00:10:04] [SPEAKER_00]: through tools like agent force and clear speech suggest that businesses are embracing AI

[00:10:09] [SPEAKER_00]: driven efficiency. Providers should focus on helping clients implement and manage these solutions

[00:10:15] [SPEAKER_00]: effectively ensuring they balance automation and human support.

[00:10:21] [SPEAKER_00]: 3D has declared death to the ticket. Did you know tickets date back to the 1800s and customers

[00:10:28] [SPEAKER_00]: 8 tickets? 3D uses an approach for connecting, communicating and ultimately

[00:10:33] [SPEAKER_00]: collaborating. 3D allows people to come together around a topic. They can discuss and make decisions.

[00:10:41] [SPEAKER_00]: They can share and invite the right people. The future of service is collaborative.

[00:10:46] [SPEAKER_00]: Supercharge your service experience by seamlessly integrating AI and automation to meet your customers

[00:10:51] [SPEAKER_00]: where they are in teams, Slack and desktops not in tickets. With instant updates too and from

[00:10:58] [SPEAKER_00]: connect wise auto task and Halo PSA keep all communication in one place where it should be with people.

[00:11:06] [SPEAKER_00]: Decrease time to resolution 30% with chat base support by visiting getthread.com slash MSP

[00:11:14] [SPEAKER_00]: video to declare death to the ticket. Thanks for listening. Today is International Patient

[00:11:22] [SPEAKER_00]: Safety Day which feels quite relevant to IT services. It's also National IT professionals

[00:11:27] [SPEAKER_00]: day, which I know is relevant. You can celebrate with National Apple Dumpling Day.

[00:11:33] [SPEAKER_00]: I'm speaking on a webinar for a core view this week entitled Differentia Your MSP Business by

[00:11:38] [SPEAKER_00]: governing and securing M365. Join me on the 19th of September at 10 AME Stern with linked

[00:11:45] [SPEAKER_00]: register in the show notes. If you have a question you want to answer, I take those questions as an

[00:11:50] [SPEAKER_00]: email or a video or voice memo to question. At MSPradio.com I answered list for questions live each week

[00:11:57] [SPEAKER_00]: on our Wednesday live show on YouTube and LinkedIn this week. Repeat the video.

[00:12:01] [SPEAKER_00]: Now if you got a comment or a thought on a story put it in the comments if you're on YouTube

[00:12:05] [SPEAKER_00]: or reach out to LinkedIn if you're listening to the podcast. Talk to you again tomorrow.

[00:12:35] [SPEAKER_00]: Slash MSPradio or buy our Why Do We Care Merch at business of dot deck.

[00:12:42] [SPEAKER_00]: Finally, if you're interested in advertising on the show visit MSPradio.com slash engage.

[00:12:48] [SPEAKER_00]: Once again, thanks for listening to me. I'll talk to you again on our next episode of the Business of Tech.