Intel's Leadership Change, Security Upgrades from SailPoint and Verizon, and AI Search Issues

[00:00:01] It's Thursday, March 13th, 2025, and I'm Dave Sobel for Things to Know Today. Intel bets on their new CEO. Will the Foundry gamble pay off? Big security moves with SailPoint, SolarWinds, and Verizon rolling out new solutions. Here's what they mean. Think AI Search is reliable? 60% of its citations are wrong. And, AI in the boardroom? A new study says it's helping, but not without risks. This is the Business of Tech.

[00:00:31] Intel has appointed LipBoot Tan as its new CEO, effective March 18th, following significant challenges, including a 54% drop in share prices over the past year, and the departure of Pat Gelnzinger, who was pushed out after less than four years in the role. Tan, a seasoned tech investor and previously the CEO of Cadence Design Systems, is tasked with reviving Intel's fortunes and navigating its controversial Foundry strategy aimed at expanding manufacturing capabilities.

[00:01:01] Investors responded positively to Tan's appointment, with Intel's stock price rising over 11% in after-hours trading. Tan, who also served as a board member at Intel from 2022 to 2024, expressed his eagerness to build upon Intel's strengths, focusing on its powerful computing platform and strong manufacturing capabilities.

[00:01:21] As Intel seeks to compete in the semiconductor market, particularly in areas like smartphone and artificial intelligence chips, Tan's leadership is viewed as crucial to restoring the company's standing in the tech landscape. The board is looking to see if Tan will pursue Intel's previous chip-making strategy or consider spinning off parts of its manufacturing operations, aiming to restore Intel's position as a leading product company while offering both manufacturing and chip design services.

[00:01:49] Tan has indicated his commitment to the company's controversial Foundry strategy. Taiwan Semiconductor Manufacturing Company Taiwan Semiconductor Manufacturing Company, or TSMC, has proposed a joint venture to operate Intel's foundries, aiming to acquire no more than 50% stake. This comes as TMMC seeks partnerships with U.S. chip designers, including NVIDIA, Advanced Microdevices and Broadcom. Talks are still in the early stages, but interest has been expressed also by Qualcomm.

[00:02:19] The proposal follows Intel's recent net loss of $18.8 billion in 2024, marking its first loss since 1986. The U.S. government under the Trump administration is closely monitoring the situation as it aims to bolster American manufacturing. If finalized, the deal would require approval from the administration, which has concerns about foreign ownership of Intel's operations. Why do we care?

[00:02:45] Pat Gounsinger's departure signals investor dissatisfaction with Intel's ability to execute on its Foundry ambitions and regain lost ground in high-performance computing. Liputan's appointment, given his background as an investor and former CEO, suggests that Intel is moving towards a more aggressive restructuring strategy. For IT service providers, a revitalized Intel could mean better pricing and availability of chips, especially in server computing, AI workloads, and edge computing.

[00:03:15] However, TAN's commitment to the Foundry model suggests that Intel will continue its costly pursuit of manufacturing independence, a strategy that has yet to yield clear returns. From a risk perspective, if TAN pivots Intel towards a more focused product-first strategy, it could mean a stronger push into AI accelerators, x86 dominance in the data center, and a resurgence in enterprise solutions.

[00:03:37] On the other hand, if Intel remains stuck between being a manufacturer and a product company, we may see continued instability impacting product roadmaps and availability for MSPs and enterprises relying on Intel's chips. For providers, a weaker Intel would mean a future where AMD, Nvidia, and ARM-based solutions dominate, requiring shifts in vendor partnerships and technical expertise. This episode is supported by Comet Backup.

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[00:04:35] Get $100 free credit when you sign up with the promo code MSPRADIO. Start running backups in 15 minutes or less. Comet Backup. The backup solution that MSPs trust. SailPoint announced an expansion of its Managed Service Provider program, making its identity security solutions more accessible to smaller enterprises. This initiative responds to the increasing threats targeting vulnerable identities.

[00:05:01] According to the company, this program allows businesses to onboard identity security as a fundamental function, focusing on entry-level use cases while providing pathways for future growth. Ron Meckling, chief sales officer at Simeo, highlighted that traditionally only large enterprises could afford advanced identity security solutions, but this expansion changes that, enabling organizations of all sizes to enhance their security posture.

[00:05:27] TeamViewer launched its first integrated solution with OneE, following the recent acquisition aimed at enhancing digital workspace experiences. Announced at the Gartner Digital Workplace Summit, the new offerings include TeamViewer's device monitoring, which now features real-time performance insights from OneE, enabling improved endpoint visibility and proactive issue detection. Additionally, secure remote connectivity through TeamViewer's device.

[00:05:52] Additionally, secure remote connectivity through TeamViewer Tensor is directly integrated into the OneE Digital Employee Experience program, allowing IT teams to respond swiftly to critical issues. SolarWinds announced its acquisition of Squadcast, a company specializing in incident response solutions. This move aims to enhance SolarWinds capability in managing complex IT environments, particularly in the face of increasing alerts and operational challenges.

[00:06:17] With the merger, SolarWinds expects to leverage Squadcast's AI-driven tools to streamline incident response, reduce distractions from critical alerts, and improve operational resilience for IT professionals. The integration will also include over 200 integrations with platforms like Microsoft Teams and Slack, enhancing communication during incidents.

[00:06:38] Verizon Business launched a new security service called Trusted Connection, aimed at enhancing cybersecurity for businesses by implementing continuous verification of access to devices, networks, and cloud applications. The service incorporates security service edge capabilities, which are integrated security features for safe access to various applications.

[00:06:58] According to the 2024 Verizon Data Breach Investigation Report, 77% of basic web application attacks and 31% of all breaches in the past decade involved stolen credentials. Trusted Connection aims to mitigate these risks by enforcing strict access controls, checking device security, and requiring multi-factor authentication.

[00:07:20] The service also offers features like centralized policy definitions, secure connectivity, and performance insights, making it easier for businesses to manage their cybersecurity needs. Why do we care? Disclosure, I am a SolarWinds shareholder. I'll highlight that the idea of security in the network connection itself is appealing. Why is the only version of the internet you can buy the gross one?

[00:07:44] Why is the responsibility for securing the internet the customer's responsibility and not the provider? Ponder that. If the answer is, we make more money, that's not customer-centric, and it's ripe for disruption. A recent study by the Tau Center for Digital Journalism highlights significant citation issues with generative AI search tools.

[00:08:08] The research revealed that these chatbots, which are increasingly used by nearly one in four Americans as alternatives to traditional search engines, often provide incorrect or misleading citations for news content. In fact, over 60% of the queries returned inaccuracies, with some tools like GROC 3 displaying error rates as high as 94%.

[00:08:29] The study tested eight generative search tools through 1,600 queries, demonstrating that even premium models were more likely to give confidently incorrect answers, undermining user trust. The findings underscore the urgent need for better evaluation and citation practices in AI-powered searches, as they often obstruct traffic to original news sources and misattribute content. Why do we care?

[00:08:55] For providers, the key takeaway is that generative AI search tools remain experimental at best and dangerous at worst. Until these tools can consistently provide accurate and verifiable sources, businesses should treat them as unreliable assistance rather than definitive sources of truth, particularly where information accuracy is key. From Harvard Business Review, at an $85 million revenue company based in Austria,

[00:09:21] researchers investigated the integration of artificial intelligence into executive decision making. Over the course of the year, they conducted various interventions, including using ChatGPT to generate discussion prompts during meetings. The findings revealed that while AI could enhance executive discussions, it required active human engagement to be effective. The executive noted that AI disrupted established thought patterns, prompting deeper analysis and consideration of new options.

[00:09:47] However, reliance on AI created an illusion of completeness, which could lead to oversight of critical issues such as legal implications. Ultimately, the study highlighted the potential for AI to improve the speed and efficiency of boardroom discussions, providing rapid data analysis and cost-saving opportunities. This research builds upon earlier studies showing that large language models can outperform humans in tasks like product design and market intelligence,

[00:10:14] further emphasizing the transformative role AI could play in corporate governance. Why do we care? One of my predictions for last year was a company putting AI on its board. While I didn't get the prediction, well, here's the experiment. The study validates the growing role of AI in executive decision-making, but it also highlights the limitations that keep AI from fully replacing human judgment, especially in governance and high-stakes strategic planning.

[00:10:41] While AI accelerates information-gathering and analysis, executives in the study mistakenly assumed AI-generated insights were comprehensive, which can lead to critical blind spots. For providers offering AI-driven automation or decision-to-support tools, it underscores the need for human oversight, especially in areas like cybersecurity, compliance, and financial forecasting.

[00:11:03] Companies that figure out the right human-AI balance will outperform competitors that either over-rely on AI or dismiss it entirely. Providers should be thinking about AI-powered decision-support tools as a service offering, helping businesses implement and manage AI governance frameworks. Are you ready to get your brand in front of the tech leaders shaping the future of managed services?

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[00:12:19] Today is National Canine Veterans Day, National Coconut Tort Day, National Good Samaritan Day, and National Open an Umbrella Indoors 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.

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