IBM and Intel Earnings Reveal Challenges; $22M Fintech Raise Targets MSP Billing Pain

[00:00:01] It's Friday, April 25th, 2025, and I'm Dave Sobel for Things to Know Today. IBM and Intel Earnings Reveal Deeper Cracks Beneath the Surface, a $22 million Fintech Raise Targets MSP's Billing Pain, CyberVerify Levels Up Compliance Automation, but Trust Will Be Tested, and a Wave of New AI Tools from ChatGPT Lite to Open Source Voice Models Point to a More Local, Trusted, and Modular Future.

[00:00:31] This is the Business of Tech. Earnings Calls Have Begun, and I wanted to look at two. IBM reported better-than-expected earnings and revenue for the first quarter of 2025, with earnings per share reaching $1.60, surpassing the anticipated $1.40. The company's revenue was $14.54 billion, exceeding the expected $14.4 billion, marking a 0.6% increase from the previous year.

[00:01:00] However, net income fell to $1.06 billion from $1.61 billion year-over-year. But IBM is facing significant challenges as the U.S. government has shelved 15 contracts during a cost-cutting initiative, resulting in an estimated loss of $100 million. Despite the setback, the tech giant reported a slight revenue increase of 1% for the first quarter, totaling that $15.5 billion, and provided a positive forecast for the second quarter,

[00:01:30] projecting revenues between $16.4 billion and $16.75 billion. IBM Chief Executive Officer Arnvid Krishna acknowledged the difficulties, noting that the consulting sector is particularly vulnerable to budget cuts. The company is also navigating a turbulent market environment, marked by government spending reductions and trade disruptions. Despite the positive revenue figures, IBM's shares still dipped by 5%,

[00:01:57] reflecting investor concerns amid the ongoing political and economic shifts. Intel reported a net loss of $8 million on revenues of $12.7 billion for the first quarter of 2025, with revenues remaining flat year-over-year. This decline represents a 51.4% drop in net earnings, prompting the company to warn that future earnings will likely miss estimates, leading to layoffs as part of cost-cutting measures.

[00:02:26] According to Intel CEO Lit Bhutan, the company is focusing on operational efficiency and returning to its core principles by listening to customers. The client computing group, which designs chips for personal computers, saw a revenue decline of 8% year-over-year, while the data center and artificial intelligence group experienced an 8% increase, generating $4.1 billion.

[00:02:50] Additionally, Intel's revised revenue forecast for the current quarter is between $11.2 billion and $12.4 billion, below market expectations of $12.9 billion, resulting in a 6% drop in shares after hours trading. Intel's new CEO has announced a turnaround plan that includes layoffs and a reduction in the number of meetings. This strategy aims to streamline operations and refocus the company on its core objectives.

[00:03:16] The plan comes at a time when the semiconductor industry is facing increasing competition and challenges, highlighting the need for companies like Intel to adapt quickly. Why do we care? IBM beat earnings expectations, but the headline hides real pressure points that matter to IT services firms. Federal contract exposure is risky right now. $100 million impact from just 15 canceled U.S. government contracts

[00:03:40] is a sharp reminder that government business is not risk-free, especially in the current climate. And smaller firms should be concerned about the trickle-down impact to the services and businesses those contracts serve. If U.S. government austerity continues or geopolitical risks escalate, consulting-heavy revenue could face further erosion. It also puts pressure on IBM to demonstrate real value in AI and automation, where the competition is increasingly aggressive.

[00:04:09] Intel's quarter confirms what many in IT already suspected. Client hardware is stagnant and growth in AI isn't yet offsetting the drop. MSPs should assume that Intel will remain a laggard in enabling cutting-edge AI infrastructure. And layoffs and fewer meetings are not a strategy. New CEO Liputan's plan to simplify operations may sound agile, but it lacks a clear innovation roadmap. Cutting meetings won't fix execution or ecosystem alignment.

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[00:05:33] Alternative Payments has successfully raised $22 million in funding to enhance its automation and accessibility in the B2B payments sector. The New York-based company aims to expand its product offerings and grow its customer success teams, addressing a market that has been significantly under-invested in, according to CEO Baxter Lanius. Lanius emphasized the importance of product development, aiming to build a comprehensive financial services platform that automates all-money movements for managed service providers.

[00:06:02] The company has already seen impressive growth, increasing its total processing volume nearly five-fold since 2024, and helping clients reduce day sales outstanding by up to 50%. The company has plans to expand internationally into Canada and the United Kingdom by the end of the year. CyberVerify, the compliance platform developed by MSP Alliance, has announced significant enhancements aimed at empowering managed service providers and software-as-a-service companies.

[00:06:29] The upgrade includes a new user interface, a revolutionary scoring model for measuring compliance maturity, and an innovative API for seamless integrations. The redesigned CyberVerify platform features an all-new dashboard that promises a more intuitive user experience. Among the key enhancements is the Cortex scoring model, which tracks compliance in real-time using data-driven insights, specifically for managed service providers.

[00:06:56] The introduction of the Compliance Connector API aims to automate compliance documentation, allowing providers to efficiently gather evidence from core platforms like remote monitoring and management systems. Why do we care? Fintech is finally catching up with the realities of service-based businesses. Most financial platforms still assume product-centric businesses, and MSPs deal with recurring billing, variable services, and slow pay cycles.

[00:07:23] That's a pain point Alternative Payments is explicitly targeting. A lot depends on execution. International expansion is notoriously difficult in payments, and integrations with the MSP tech stack are critical. If Alternative Payments can't connect cleanly into PSA and RMM or accounting systems, adoption is going to stall. If CyberVerify can automate documentation from RMM and PSA tools, providers can offer ongoing compliance visibility rather than a yearly checkbox audit.

[00:07:53] The platform's value still hinges on whether MSP Alliance can maintain independence and credibility in how it scores maturity. If scoring feels like a pay-to-play mechanism, trust will erode. MSP Alliance is not a highly visible member of the MSP community, and this is required for real market success. Also, while the compliance connector API sounds promising, real integration depth, not just surface-level connections, will be the real test.

[00:08:22] OpenAI has introduced a new lightweight version of its ChatGPT deep research tool, which will be available to ChatGPT+, team, and pro users, as well as free users starting yesterday. This version, powered by the OpenAI O4 mini model, offers a more cost-effective solution while still delivering quality responses, albeit shorter than those generated by the full research tool.

[00:08:44] The lightweight version aims to enhance user experience by increasing usage limits, allowing users to continue their queries even after reaching the original version's limits. According to OpenAI, the lightweight tool maintains a level of intelligence comparable to its predecessor while being significantly cheaper to operate. A new open-source text-to-speech model named Dia has been launched by the two-person startup Neri Labs, aiming to compete with established players like Eleven Labs and OpenAI.

[00:09:13] Dia boasts 1.6 billion parameters and is designed to produce natural-sounding dialogue directly from text prompts, with claims from co-creator Toby Kim that it surpasses other proprietary offerings in quality. The model supports unique features such as emotional tone, speaker tagging, and nonverbal audio cues, which enhance the realism of generated speech. Unlike its competitors, Dia can interpret and deliver actual laughter and other nonverbal expressions,

[00:09:41] demonstrating superior performance in various scenarios, including emotionally charged conversations and complex dialogue. The model is currently available for download from Hugging Face and GitHub and is fully open-sourced under an Apache 2.0 license, allowing commercial usage while prohibiting unethical applications. Meta has officially rolled out live translation features to all users of its Ray-Ban smart glasses, allowing real-time conversations in English, French, Italian, and Spanish.

[00:10:10] This update expands upon the earlier limited release from December of 2024, which was only accessible to early access program members. The new live translation feature works without the need for Wi-Fi or cellular data, provided users download the necessary local language packs. With plans to launch in additional markets like Mexico, India, and the United Arab Emirates, Meta continues to expand its presence in the smart eyewear market.

[00:10:35] LinkedIn is expanding its verification system to external websites, allowing platforms like Adobe to integrate LinkedIn's verification instead of creating their own. This initiative aims to combat online inauthenticity that supports creators by enabling them to display a verified on LinkedIn badge on their profiles. Since its introduction in 2023, over 80 million users have verified their identity, workplace, or education using LinkedIn's tools.

[00:11:02] Adobe is among the first to adopt this expanded verification, enhancing user credibility across its platforms. Why do we care? Well, what connects a lightweight research tool, an open-source voice model, translation glasses, and platform identity badges? They're all signs that the wave of AI isn't just smarter, it's more localized, controllable, and trust-oriented. These aren't isolated stories. They point to an emerging customer expectation.

[00:11:28] I want AI that works fast, sounds natural, runs locally, and only interacts with people I can trust. That's a product vision. MSPs should consider how to build offerings aligned with that blueprint, especially in AI readiness assessments, tool integration, and secure identity frameworks. And two big ideas to round out our week.

[00:11:51] Microsoft's latest Work Trend Index report emphasizes that the success of enterprises increasingly relies on the human-to-AI agent ratio as they adopt digital workers. The survey, which included responses from 31,000 individuals across 31 countries, reveals that 82% of leaders plan to expand their use of digital labor within the next year, despite 80% of the global workforce feeling time-strapped.

[00:12:17] Notably, 46% of leaders report their companies are fully automating workflows with AI agents, and 33% are considering using AI to reduce headcount. The report highlights the emergence of new roles, such as AI data specialists and AI business process consultants as organizations adapt to an evolving workforce landscape.

[00:12:37] With 28% of managers contemplating the hiring of AI workforce managers to lead hybrid teams, the integration of human and AI labor appears to be a critical factor for organizational success. Slate Auto has announced the upcoming release of the Slate Truck, an electric pickup priced under $20,000 after federal incentives.

[00:12:59] This two-seater vehicle is designed for minimalism, featuring a range of 150 miles, and is stripped of traditional amenities such as paint, a stereo, and a touchscreen interface. The Slate Truck aims to disrupt the automotive market by focusing on affordability and personalization, with a production model that requires no painting and simplifies manufacturing processes.

[00:13:22] The company, based in Michigan, emphasizes a do-it-yourself approach to vehicle ownership, allowing customers to customize their trucks easily. Slate Auto's strategy has attracted significant investor interest, including reportedly from Jeff Bezos. Deliveries are expected to begin in late 2026, with pre-orders starting at just $50 on the company's website. Now why do we care? Some questions I want you to ponder. The human-to-AI agent ratio.

[00:13:51] While that sounds like jargon, it's shorthand for a shift that will directly impact IT service firms. If 46% of leaders are already fully automating workflows with AI, and 33% are considering AI to reduce headcount, MSPs are on notice. Clients aren't just dabbling anymore. They're scaling. So where can you implement this, and where can you help your clients do the same? My interest in Slate Auto is about rethinking what customers actually want from technology.

[00:14:19] The success of a stripped-down modular truck aligns with broader patterns, modular software, customizable IT stacks, and the return of good enough tech that favors function over flash. If a no-stereo, no-touchscreen truck can attract investors like Bezos, it reinforces the idea that simplicity is a feature. So where can simplicity be the answer? Thanks for listening.

[00:14:47] Today is National Arbor Day, National Telephone Day, and National Hug-a-Plumber Day. The Business of Tech is written and produced by me, Dave Sobel, under ethics guidelines posted at businessof.tech. 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.

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