Future of IT Services Report, Compliance Scorecard Alliances, Consultants becoming MSPs

[00:00:01] It's Friday, July 12th, 2024, and I'm Dave Sobel. Three things to know today. AI and cybersecurity dominate IT investment plans, per a CASEA survey. Compliance Scorecard launches a Strategic Alliance Program, and Consultants evolve into managed services providers amid rising demand for operational solutions. This is the Business of Tech.

[00:00:25] CASEA's Future of IT Survey Report highlights the prioritization of AI and cybersecurity as top areas for investment. The report reveals that IT service providers are increasingly investing in AI to enhance efficiency and productivity, with 40% expecting AI usage as the primary budget driver in 2024.

[00:00:46] Cybersecurity remains a priority, with 43% of respondents considering it the foremost challenge for IT departments. Additionally, the survey emphasizes the importance of automation, completeness of solutions, and shorter vendor contracts in the IT industry. Reuters reports that China is leading the world in adopting generative AI,

[00:01:06] with 83% of Chinese respondents in a survey stating they use the technology. This surpasses the adoption rates in other countries, including the U.S. China's progress in generative AI is supported by its strong domestic industry and its leading position in generative AI patents.

[00:01:23] The country's advancements in continuous automated monitoring also contributes to its goal of becoming a global leader in AI and surveillance technologies. Why do we care? With those numbers, it's evident that AI is viewed as a key enabler of efficiency and productivity.

[00:01:40] The investment is likely to spur innovations in service delivery and operational management. Providers will be both consumers of that and implementers. The emphasis on automation and the completeness of solutions indicates a shift toward integrated, holistic approaches in IT management.

[00:01:58] Keep a close eye on advancements in AI technologies globally, particularly in countries like China, to understand the competitive dynamics and inform your strategic decisions. I'll do my part to continue reporting. Today's episode is supported by CoreView.

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[00:02:37] This powerful platform enables automatic reporting and remediation, ensuring optimal performance and security. 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.

[00:02:54] Want to know more? Visit coreview.com slash MSP and find out more. Compliance Scorecard has launched a strategic alliance program aimed at enhancing cybersecurity offerings for managed services providers and their clients. The program includes integrated tools and services to meet compliance standards,

[00:03:14] and alliance partners gain access to diverse services and revenue streams. The program features significant names in the channel like LionGuard, Fifth Wall Cyber Insurance, Auvik, and EZDMark. Compliance Scorecard is a portfolio company of Bellini Capital, owned by ConnectWise founder Arne Bellini.

[00:03:33] The program creates additional service offerings and recurring revenue streams for providers, while providing support through third-party integrations and certified service providers. Why do we care? I want to highlight that an alliance program is both a great idea and not significant. That's why I picked this.

[00:03:51] Compliance Scorecard is running a typical, smart, and standard engagement plan. That's not something to discount, nor something unique. In fact, it would be notable if the company was not doing these things. So thus, look for companies that do not do these things as an aberration to avoid.

[00:04:11] Let's wrap up the week with some big ideas. I'm going to start with a piece in fortune. The role of consultants is evolving as companies seek strategic partners to address operational challenges. Traditional advisory services are no longer sufficient, and companies are turning to consultants to fill operational gaps.

[00:04:29] Many professional services firms are transitioning into managed services providers, offering end-to-end management of core business functions. This shift is driven by the need to keep up with technological change, navigate economic volatility, leverage AI, and address cybersecurity threats.

[00:04:47] The managed services market is predicted to grow into a $500 billion-plus industry by 2028. Advisory firms are combining subject matter expertise with operational capabilities, acting both as advisors and delivery partners. They're also building networks of technology partners to provide clients with the necessary skills and technology.

[00:05:07] Flexible team structures and fee models are being adopted to meet their clients' needs. The rise of managed services is expected to continue, leading to blended and flexible approaches to engagements with consultants and strategic partners. I also want to introduce the idea of the Echoverse from Harvard Business Review.

[00:05:27] The Internet and AI tools are transforming marketing communications in the Echoverse, a complex and interactive landscape. Traditional communication models are giving way to omnidirectional communication, and marketers need to shift from leading messaging to guiding messaging.

[00:05:42] The authors propose a topology of marketing communication strategies, including Echoverse marketing, and recommend enabling co-creation, creating directed learning opportunities, and adopting a continuous learning mindset. ITPro highlights a rise in shadow SaaS usage, which poses a significant blind spot for enterprise security teams.

[00:06:04] Nearly three-quarters of workers admit to using unauthorized SaaS applications. Despite being aware of the risks, such as data loss and breaches, organizations lack clear policies and consequences for using these tools. Security teams should evaluate and provide approved alternatives to mitigate risks.

[00:06:23] Concerns about shadow AI are also present, with organizations implementing tools and policies to control its use. And is white-collar work just becoming meetings? From The Atlantic, white-collar workers are spending more time in meetings than ever before, even as they work remotely.

[00:06:42] The share of the workday spent in meetings has steadily increased over the past few decades, and recent cultural changes emphasizing inclusion and decision-making have contributed to this trend.

[00:06:52] The article highlights the negative impact of excessive meetings on productivity, and suggests that artificial intelligence tools may help eliminate unnecessary meetings in the future. Why do we care? Well, the writer in Fortune agrees with me.

[00:07:06] There is value in the peanut butter and jelly of recurring revenue and project work. It's additive. You want both. There's a lot to think about here. Enjoy your weekend.

[00:07:18] With as many breaches and security concerns as I report in 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. Huntress is focused on elevating SMBs and MSPs around the world.

[00:07:38] 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. And the proof is the execution. Huntress is the number one rated EDR for SMBs on G2.

[00:07:58] Want to know more about the platform? Visit huntress.com slash MSPradio to learn more. Thanks for listening. It's National French Friday and also National Simplicity Day. So let's enjoy both of those. This weekend, you'll get a bonus episode as we dive into AI governance and data security.

[00:08:20] That'll drop on the weekend. And of course, next week, our live show. If you've got a question, send it in at question at MSPradio.com. Most of all, if you're enjoying the show, share it with a colleague.

[00:08:31] Help grow the audience. It's the number one thing you can do if you find value in the show. I will talk to you again on Monday. Have a great weekend. Or buy our Why Do We Care merch at businessof.tech.

[00:09:11] Finally, if you're interested in advertising on the show, visit MSPradio.com slash engage. Once again, thanks for listening to me. I'll talk to you again on our next episode of the Business of Tech.