Microsoft's Security Overhaul, ConnectWise's AI Focus, and CrowdStrike's Trust Issues Explored

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[00:01:12] [SPEAKER_00]: It's Tuesday, September 24th, 2024 and I'm Dave Sobl.

[00:01:16] [SPEAKER_00]: Three things to note today.

[00:01:18] [SPEAKER_00]: Microsoft's security overhaul report, new governance, tight controls and accountability

[00:01:22] [SPEAKER_00]: measures to rebuild trust.

[00:01:25] [SPEAKER_00]: Leadership change at Connectwise signals a focus on AI as the platform battles intensify

[00:01:31] [SPEAKER_00]: and customer trust in crowd strike divided.

[00:01:35] [SPEAKER_00]: German Outage's raised concerns but analysts highlight the expansion potential.

[00:01:41] [SPEAKER_00]: This is the business of tech.

[00:01:45] [SPEAKER_00]: The big news is that Microsoft released a progress report on its investments in security

[00:01:49] [SPEAKER_00]: changes.

[00:01:50] [SPEAKER_00]: Microsoft has prioritized security across its organization, launching the secure future

[00:01:56] [SPEAKER_00]: initiative to address past security failures.

[00:01:59] [SPEAKER_00]: With 34,000 engineers focused on cybersecurity, the company has implemented significant

[00:02:03] [SPEAKER_00]: changes, including updating security systems, reducing access token lifespans and enhancing

[00:02:10] [SPEAKER_00]: transparency by publishing CBE's.

[00:02:13] [SPEAKER_00]: New governance structures including a cybersecurity governance council and ongoing employee training

[00:02:18] [SPEAKER_00]: aim to foster a culture of security.

[00:02:21] [SPEAKER_00]: They released all of this in a new report.

[00:02:23] [SPEAKER_00]: Despite progress, Microsoft acknowledges the ongoing challenge of rebuilding trust in its

[00:02:28] [SPEAKER_00]: security practices.

[00:02:30] [SPEAKER_00]: Microsoft has also eliminated 730,000 unused applications and 5.75 million in active tenants.

[00:02:39] [SPEAKER_00]: Key measures include deploying 15,000 lockdown devices, implementing video-based identity verification

[00:02:45] [SPEAKER_00]: for 95% of production staff and updating access token processes.

[00:02:50] [SPEAKER_00]: Microsoft aims to reduce its attack service and improve identity and authentication mechanisms

[00:02:55] [SPEAKER_00]: with accountability measures for executives tied to security goals.

[00:03:00] [SPEAKER_00]: I spotted some quick data points that are related.

[00:03:03] [SPEAKER_00]: A recent IDC survey commissioned by Zerto reveals the backup failures account for 32%

[00:03:08] [SPEAKER_00]: of global data loss incidents.

[00:03:10] [SPEAKER_00]: 48% of those who paid ransom had valid backups, but only 20% fully recovered their data.

[00:03:17] [SPEAKER_00]: An HYCU's 2024 SAS resilience report reveals that while Sassad option is high, many

[00:03:24] [SPEAKER_00]: organizations face security gaps due to shadow IT and reliance on vendors for backup.

[00:03:29] [SPEAKER_00]: Only 43% of businesses have recovery plans for SAS data.

[00:03:34] [SPEAKER_00]: A lack of skill-lite talent further exacerbates these issues and only 19% of businesses

[00:03:39] [SPEAKER_00]: work with managed services providers on continuity strategies.

[00:03:45] [SPEAKER_00]: Why do we care?

[00:03:47] [SPEAKER_00]: Microsoft's approach to rebuilding its security posture clearly signals where the industry

[00:03:51] [SPEAKER_00]: is headed toward tighter security controls, greater transparency and an emphasis on governance

[00:03:57] [SPEAKER_00]: and accountability.

[00:03:59] [SPEAKER_00]: The layer in government controls, particularly with Microsoft's reputation taking a beating

[00:04:03] [SPEAKER_00]: with the US government and the rollout of CMMC 2.0, and we see the trend.

[00:04:09] [SPEAKER_00]: Tactically, the guidance isn't new just reinforced.

[00:04:12] [SPEAKER_00]: Take a page from Microsoft's playbook by conducting comprehensive audits of client environments

[00:04:17] [SPEAKER_00]: to identify and eliminate unused resources that could become security liabilities and reduce

[00:04:23] [SPEAKER_00]: attack surface.

[00:04:25] [SPEAKER_00]: Offer tailored security assessments and recovery planning for SAS platforms, addressing

[00:04:30] [SPEAKER_00]: the specific challenges posed by shadow IT and reliant on vendor backup strategies, bridge

[00:04:36] [SPEAKER_00]: to the talent gap by providing security training and managed security services.

[00:04:41] [SPEAKER_00]: And strategically, a less is more strategy works, do less and do it better.

[00:04:48] [SPEAKER_00]: I'll talk more about trust again later today.

[00:04:54] [SPEAKER_00]: Today's episode is supported by Huntress.

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[00:05:46] [SPEAKER_00]: Connect wise has appointed many Ravello as the new CEO, succeeding Jason McGee who

[00:05:52] [SPEAKER_00]: let the company to significant growth, increasing revenue by over 300% at profitability

[00:05:56] [SPEAKER_00]: by 500% since 2019.

[00:06:00] [SPEAKER_00]: Ravello with over 30 years of experience in the technology sector aims to build on the success,

[00:06:05] [SPEAKER_00]: particularly leveraging opportunities presented by AI for managed services providers.

[00:06:09] [SPEAKER_00]: McGee will assist in the transition to ensure continuity and maintain the company's partner

[00:06:14] [SPEAKER_00]: first focus.

[00:06:16] [SPEAKER_00]: So let's look at the context.

[00:06:18] [SPEAKER_00]: Halo PSA has partnered with Ninja 1 to create a top tier platform to compete with Kasey

[00:06:23] [SPEAKER_00]: 365, focusing on providing high quality tools rather than the cheapest options.

[00:06:29] [SPEAKER_00]: This collaboration enhances service capabilities for-minute services providers and includes

[00:06:34] [SPEAKER_00]: new AI-driven features to streamline operations.

[00:06:37] [SPEAKER_00]: Additionally, Halo PSA announced Halo Gravity, a business improvement service to help MSPs

[00:06:44] [SPEAKER_00]: improve efficiency and scalability.

[00:06:47] [SPEAKER_00]: The partnership aims to address previous challenges MSPs faced using several platforms and

[00:06:52] [SPEAKER_00]: positions both companies for future growth in the PSA market.

[00:06:56] [SPEAKER_00]: And go to resolve his introduced new software asset management features that enhance IT asset

[00:07:01] [SPEAKER_00]: visibility and control, complementing existing hardware management capabilities.

[00:07:05] [SPEAKER_00]: The Unified solution allows IT teams to track software licenses, optimize usage, manage costs

[00:07:12] [SPEAKER_00]: and share compliance and streamline onboarding and off-boarding processes.

[00:07:16] [SPEAKER_00]: Ultimately improving IT operations and reducing unnecessary expenses.

[00:07:21] [SPEAKER_00]: Why do we care?

[00:07:23] [SPEAKER_00]: This transition is more than just a change in leadership.

[00:07:26] [SPEAKER_00]: At signals connect devices intent to double down on leveraging AI as a differentiator.

[00:07:30] [SPEAKER_00]: Ravello comes with that experience so I'm inclined to believe that's the reason why.

[00:07:35] [SPEAKER_00]: Is there a potential platform war around managed services?

[00:07:38] [SPEAKER_00]: Well, Kaseya is driving on price.

[00:07:40] [SPEAKER_00]: Can likewise appears to be leaning into function.

[00:07:43] [SPEAKER_00]: Halo and Ninja bulk up by partnering.

[00:07:46] [SPEAKER_00]: If we look at Kenow's March 2024 estimates, a Halo Plus Ninja combined are 9.8% of the market

[00:07:53] [SPEAKER_00]: with Ninja bringing the majority of that that puts them in striking distance of number 3

[00:07:58] [SPEAKER_00]: enable at 11.5%.

[00:08:00] [SPEAKER_00]: Disclosure, I'm an enabled shareholder.

[00:08:03] [SPEAKER_00]: For those who wonder if Halo and Ninja would merge,

[00:08:07] [SPEAKER_00]: Ninja 1 has summit partners and insight partners as investors and Halo is privately funded

[00:08:12] [SPEAKER_00]: and UK-based, which is just notable for different market conditions.

[00:08:17] [SPEAKER_00]: Insight does like the MSP space within Westminster and Kaseya and Kenakwise,

[00:08:21] [SPEAKER_00]: nothing is stopping them from a third in this space.

[00:08:24] [SPEAKER_00]: They have money and other PSA products and other markets, so distinctly possible.

[00:08:29] [SPEAKER_00]: On a personal note, I've always enjoyed my conversations with Jason McGee

[00:08:32] [SPEAKER_00]: and five years as it could run.

[00:08:34] [SPEAKER_00]: We don't know anything about his personal motivations here.

[00:08:37] [SPEAKER_00]: He's been very generous with his time to answer my questions,

[00:08:40] [SPEAKER_00]: and I do wish him all the best.

[00:08:44] [SPEAKER_00]: Our customers trusting or not trusting crowd strike.

[00:08:48] [SPEAKER_00]: Well, the register reports that 10% of affected German organizations are abandoning their current

[00:08:53] [SPEAKER_00]: security vendors with 4% already doing so.

[00:08:56] [SPEAKER_00]: The Outage caused significant operational disruptions with 48% of organizations

[00:09:00] [SPEAKER_00]: experiencing downtime averaging 10 hours.

[00:09:03] [SPEAKER_00]: Most respondents plan to enhance their incident response strategies,

[00:09:06] [SPEAKER_00]: acknowledging that complete protection against IT security incidents is unattainable.

[00:09:11] [SPEAKER_00]: This data from Germany's Federal Office for Information Security.

[00:09:15] [SPEAKER_00]: But over in CRN, customers continue to trust crowds strike

[00:09:18] [SPEAKER_00]: on our interest in expanding their use of the Falcon platform,

[00:09:22] [SPEAKER_00]: according to a Morgan Stanley analyst.

[00:09:24] [SPEAKER_00]: Quote, customers still want to consolidate on the Falcon platform and quote,

[00:09:28] [SPEAKER_00]: wrote, HUMZA FOTORWALA, equity analyst at Morgan Stanley in a note to investors.

[00:09:35] [SPEAKER_00]: Crowd strike is announced major updates to its Falcon platform aimed at unifying security and

[00:09:40] [SPEAKER_00]: IT operations, announcing threat response efficiency.

[00:09:43] [SPEAKER_00]: Key innovations include project-castrol for comprehensive visibility,

[00:09:47] [SPEAKER_00]: crowd strike signal for AI driven insights and advancements in Falcon cloud security and

[00:09:52] [SPEAKER_00]: Falcon next-gen SIM.

[00:09:54] [SPEAKER_00]: The updates also automate IT workflows for Gen of AI and prove identity protection

[00:09:59] [SPEAKER_00]: and offer tailored financing solutions through crowd strike financial services,

[00:10:04] [SPEAKER_00]: all designed to simplify cybersecurity management and enhance organizational response to threats.

[00:10:10] [SPEAKER_00]: Why do we care?

[00:10:11] [SPEAKER_00]: If you're considering the future for Crowd Strike, I will lean more into the

[00:10:15] [SPEAKER_00]: German government's data over Morgan Stanley's analysis.

[00:10:18] [SPEAKER_00]: Now, I'm not expecting a mass exodus from Crowd Strike.

[00:10:21] [SPEAKER_00]: I'll note they have a lot of work to do.

[00:10:23] [SPEAKER_00]: Morgan Stanley is looking for financial upside and their buy rating makes sense, you know,

[00:10:29] [SPEAKER_00]: buy low sell high.

[00:10:31] [SPEAKER_00]: From a customer trust perspective, it's low.

[00:10:34] [SPEAKER_00]: They have to get to high and that's via hard work, ideally,

[00:10:38] [SPEAKER_00]: but it could be due to poor memories too.

[00:10:43] [SPEAKER_00]: Today's episode is supported by CoreView.

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[00:11:33] [SPEAKER_00]: Thanks for listening. Today's National Cherry's Jubilee Day and its National Muffungo Day,

[00:11:38] [SPEAKER_00]: which is just as fun to eat as it is to say.

[00:11:41] [SPEAKER_00]: It's also National Voter Registration Day, so please make sure you're registered.

[00:11:47] [SPEAKER_00]: I'll be doing two live broadcasts as part of SMB TechFast on October 17th and 18th,

[00:11:53] [SPEAKER_00]: so make sure to sign up and join the event.

[00:11:56] [SPEAKER_00]: SMB TechFast.com slash Go slash Sobalt, link in the show notes.

[00:12:01] [SPEAKER_00]: And if you have a question you want answered, I take those listener questions.

[00:12:05] [SPEAKER_00]: Send them in, ideally, as a voice-man more video to question at MSPradio.com.

[00:12:09] [SPEAKER_00]: If you've got a comment or a thought on a story, put it in the comments if you're on

[00:12:13] [SPEAKER_00]: YouTube or reach out and link in if you're listening to the podcast. Talk to you again tomorrow.

[00:12:19] [SPEAKER_00]: The Business of Tech is written and produced by me Dave Sobal under ethics guidelines,

[00:12:24] [SPEAKER_00]: post it at businessof.tech. If you like the content, please make sure to hit that like button,

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[00:12:36] [SPEAKER_00]: You can also check out our Patreon where you can join the Business of Tech Community at patreon.com slash

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[00:12:51] [SPEAKER_00]: advertising on the show, visit MSPradio.com slash engage. Once again, thanks for listening to me.

[00:12:59] [SPEAKER_00]: I'll talk to you again on our next episode of the Business of Tech.

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[00:13:33] [SPEAKER_00]: So no matter how busy you are, you'll always have time to enjoy nutritious,

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