Burnout Fuels IT Generalists; MSPs Navigate Security Needs and Nutanix's VMware Exodus

[00:00:02] It's Wednesday, March 5th, 2025 and I'm Dave Solt. Four things to know today. IT Generalists on the rise, Auvik reports highlighting burnout, skills gaps and AI's role. MSPs are facing rising security demand but our clients spending in the right places. Huntress, Cisco and Cyan AG rolling out new security features, here's why they matter. And big wins for Nutanix and scale computing as VMware customers make their move. This is the business of tech.

[00:00:32] A new report by Auvik highlights the rise of the IT generalists amid a growing talent gap in the industry. The 2025 IT Trends report reveals that 78% of IT professionals feel that work stressors prevent them from improving their skills, with 60% reporting feelings of burnout. As baby boomers retire at a rate of 10,000 per day, the burden of work is increasingly falling on senior employees, exacerbating stress and workload issues.

[00:01:01] The survey indicates that IT teams are facing a shortage of skilled workers, leading to the necessity for IT professionals to possess a broad range of knowledge across various IT functions. Additionally, the report emphasizes the importance of integrating artificial intelligence and automation to alleviate these challenges, as nearly 50% of managed service providers report using more than 10 network tools. Some notable data points. 85% of IT professionals support

[00:01:31] support remote workers at least part of the time, with 63% supporting remote workers 50% of the time or more. 34% of respondents don't yet have a policy in place to tackle AI concerns. 61% of IT professionals reported changing their network configurations on a weekly basis or more often.

[00:01:51] A survey conducted by ISACA reveals that European IT workers are experiencing significant stress and burnout, with nearly 75% reporting such issues. The primary cause identified is heavy workloads, cited by 60% of respondents, while tight deadlines and a lack of resources were also significant stressors.

[00:02:15] Additionally, almost half of the workers indicated that unsupportive management negatively affects their well-being. Despite these challenges, many IT professionals find enjoyment in problem-solving and creativity within their roles. However, a third have changed jobs in the past two years, highlighting the need for companies to improve retention strategies and support their workforce better. Why do we care?

[00:02:39] The rise of the IT generalist underscores a fundamental shift in the IT workforce dynamic. Organizations are increasingly relying on fewer individuals to manage a broader range of responsibilities due to the ongoing skills shortage. This trend directly impacts IT service providers, particularly managed service providers, who must now contend with workforce limitations while maintaining service quality.

[00:03:02] While specialization is valuable, companies may find benefit in having generalists who can adapt to various challenges instead of relying on narrow skill sets. The ability to cross-train and pivot could become a competitive advantage for providers. Companies that address burnout effectively, whether through better workload management, automation, or retention strategies, or all of them, will have a recruitment and service advantage over competitors struggling with turnover.

[00:03:31] Experts emphasize the importance of mentorship programs and training to alleviate common pain points and enhance employee satisfaction. This is a moment for MSPs to lean into mentorship, structured training programs, and AI-driven efficiency improvements to combat talent shortages and service delivery strain. The firms that build sustainable talent strategies and invest in automation will come out ahead in this increasingly challenging IT labor market.

[00:03:59] This episode is supported by Synchro. Synchro, the integrated remote monitoring and management and professional services automation platform, is designed for mid-sized and growing managed service providers. Its latest innovations include an AI-powered smart ticket management system with automatic ticket classifications, guided resolution steps using pre-approved scripts, and a natural language smart search function. These tools streamline ticket handling and improve response times.

[00:04:28] Discover more at SynchroMSP.com Some security-related market reports Gartner has identified six key cybersecurity trends for 2025, focusing on the transformative effects of generative artificial intelligence, regulatory changes, and cybersecurity burnout. Generative AI is shifting data security priorities from traditional structured data to unstructured data like text, images, and videos.

[00:04:57] Additionally, as the use of machine accounts rises, organizations must develop comprehensive strategies for machine identity and access management. A survey by Gartner reveals that organizations manage an average of 45 cybersecurity tools, urging leaders to streamline their security controls. Furthermore, the integration of security behavior and culture programs is expected to reduce employee-driven incidents by 40% by 2026.

[00:05:26] ConnectWise has released its 2025 Managed Service Provider Threat Report, revealing insights into the landscape of cybersecurity. The report highlights significant shifts in ransomware tactics, with an increasing focus on data extortion and attacks targeting smaller organizations. Notably, attackers are developing advanced techniques to evade endpoint detection and response systems, creating significant challenges for threat detection.

[00:05:51] The report also points to a resurgence of drive-by attacks, exploiting software vulnerabilities. In a recent survey conducted by Calyptic Security Corporation and Information Technology Intelligence Consulting, 86% of small businesses identified security breaches as the top threat to their operations. The survey, which involved 715 small and mid-sized businesses, revealed that 49% are planning to increase their security budgets.

[00:06:19] Additionally, 75% of respondents believe that human error has left their companies vulnerable to security threats, and nearly 70% expressed concerns over remote employees' lax security practices. The cost of downtime remains significant, with 37% of participants estimating that a single hour of downtime can cost between $1,000 and $5,000, while 8% indicate costs could exceed $25,000.

[00:06:47] Guards has revealed a troubling trend of attack-as-a-service on the dark web, particularly targeting small businesses, which make up 90% of all businesses and contribute 50% to the world's GDP. Hackers are offering access to vulnerable small business networks for as little as $600, exploiting outdated security measures. The Guards Research Unit found that over 15% of dark web listings were offering access through known vulnerabilities, some dating back years.

[00:07:16] Additionally, they uncovered listings selling stolen credentials with prices for accessing ranging from $300 to $1,800. The research highlights that cybercriminals are increasingly using double extortion tactics, threatening to release sensitive data if ransomware demands are not met. A recent study by EZDMark reveals that while 93% of IT decision-makers plan to enhance their email security in response to rising artificial intelligence threats, many face significant implementation challenges.

[00:07:46] However, 31% cited the technical complexity of adopting DMARC, that key email authentication protocol, as a major barrier. 43% are seeking external assistance to bridge the expertise gap. Why do we care? The threat landscape is shifting faster than many organizations can't adapt. Organizations don't necessarily need fewer tools, they need better interoperability between them. MSPs should focus on platform-based security solutions rather than fragmented tool sets.

[00:08:16] Many SMBs are increasing their security budgets, but without proper guidance, spending alone won't solve the problem. MSPs should help their clients prioritize security investments based on risk rather than just adding more layers. And 43% of IT leaders seeking external assistance for email security means MSPs that offer DMARC as a service or email security consulting could benefit from a growing demand, although as an integrated part of selling security.

[00:08:42] And finally, addressing cybersecurity burnout is crucial as effective leaders are prioritizing both their own well-being and that of their teams. And while we're talking security, let's hit some of the product announcements. Cyan AG has announced the launch of its new cybersecurity solution, Cyan Guard 360, designed specifically for small and medium-sized enterprises and focusing on delivery through MSPs.

[00:09:06] The product addresses the growing threat of digital attacks, particularly phishing, which has become a prevalent method for cybercriminals. Cyan Guard 360 integrates a threat intelligence platform that utilizes artificial intelligence to prevent attacks. Initially launched in the Dock region, Cyan aims to help companies defend against various digital threats with minimal effort. Cyan AG has over 15 years of experience in the industry and has worked with major clients such as Deutsche Telekom and Claro Chile.

[00:09:36] Huntress introduced a new sensitive data mode aimed at simplifying compliance with the Cybersecurity Maturity Model Certification, or CMMC, which has been a challenging requirement for managed service providers. This feature blocks unauthorized access to controlled unclassified information files while still allowing security analysts to detect threats.

[00:09:57] Cisco has announced that its Meraki for Government solution is now authorized under the Federal Risk and Authorization Management Program, known as FedRAMP, at a moderate impact level. This authorization signifies a commitment to enhancing security for federal agencies, ensuring they have access to trusted cloud solutions. Over the past 18 months, Cisco has seen a 33% increase in products achieving FedRAMP authorization, reflecting its dedication to government customer needs.

[00:10:23] Additionally, Cisco has doubled its global compliance efforts, resulting in a significant 271% increase in global certifications. Why do we care? Security is shifting toward automation, compliance enablement, and AI-driven threat intelligence. But MSPs need to focus on real-world outcomes, not just vendor marketing claims. AI-based solutions are table stakes, and it's not a differentiator, it's an expectation. Compliance complexity is a major pain point.

[00:10:52] By simplifying controlled, unclassified information protection, Huntress is addressing a major roadblock for IT providers handling government contracts. And 33% growth in FedRAMP-certified products is significant. It signals more competition in the federal space, meaning providers seeking and serving government clients need to stay updated on those compliance trends. And a bit of a check-in on the anger at VMware and Broadcom, or rather, who is benefiting.

[00:11:20] Nutanix has reported a significant revenue surge driven by customers transitioning from VMware due to Broadcom's acquisition. In the second fiscal quarter ending January 31st, Nutanix achieved revenue of $654.7 million, marking a 16% increase from the previous year. The company's profit also rose to $56 million, reflecting a 70.8% year-over-year growth.

[00:11:47] Annual recurring revenue reached $2.1 billion, up 19%, with the customer count increasing by 710 to a total of 27,870. Analysts from William Blair indicated that the company is benefiting from increased federal spending and a favorable shift in enterprise accounts seeking alternatives to VMware.

[00:12:09] Nutanix anticipates continued double-digit revenue growth for the fiscal year 2025, with a revenue forecast of $625 million for the next quarter. And in a recent interview with CRN, the CEO of Scale Computing highlighted the significant impact of the backlash against Broadcom and VMware, stating that it has driven an impressive 400% growth in enterprise demand for their solutions. The surge comes as companies increasingly seek alternatives in the virtualization market.

[00:12:39] Why do we care? The backlash against Broadcom's VMware acquisition is translating into real financial gains for competitors, most notably Nutanix and scale computing. This isn't just theoretical frustration from customers, it's an active shift in buying behavior, with enterprises and public sector organizations making significant moves away from VMware.

[00:13:01] With organizations actively looking for new solutions, providers and IT consultants should position themselves as those trusted advisors guiding the migration process. Relying solely on VMware is becoming a risk. Expanding knowledge in Nutanix, scale computing, Proxmox, or other alternatives could be a competitive advantage. While the customer base is shifting, Broadcom still holds significant market power.

[00:13:24] If they stabilize and offer better long-term incentives, some organizations may decide to stay rather than switch. While VMware customers are frustrated now, Broadcom is betting that its streamlined, enterprise-focused approach will result in a more profitable, stable business. The question is, will the customers who leave now ever come back, or is this a permanent market shift? Thanks for listening. Today is Cinco de Marcho.

[00:13:51] Kid you not, it's the prep day for St. Patrick's Day. It's also International Open Data Day, which seems much more relevant to this audience, unless you prefer National Cheese Doodle Day. Nerdy Ocon will be held in Palm Springs, California from April 7th through 9th. Visit NerdyOcon.com to learn all about it. The Business of Tech is written and produced by me, Dave Sobel, under ethics guidelines posted at businessof.tech.

[00:14:20] If you've enjoyed the show, make sure you've subscribed or followed on your favorite platform. It's free and helps directly. Give us a review, too. If you want to support the show, visit patreon.com slash MSP Radio, and you'll get access to content early. Or buy our Why Do We Care merch at businessof.tech. Have a question you want answered?

[00:14:44] We take listener questions, send them in, ideally as a voice memo or video to question at MSP Radio.com. I answer listener questions live on our Wednesday live show on YouTube and LinkedIn. If you've got a comment or a thought on a story, put it in the comments if you're on YouTube, or reach out on LinkedIn if you're listening to the podcast. And if you want to advertise on the show, visit MSP Radio.com slash engage. Once again, thanks for listening, and I will talk to you again on our next episode.

[00:15:16] Part of the MSP Radio Network. I will bring you a link to the next episode. optimus-