Mon Mar-25-2024: Accenture Slashes Revenue Forecast, SolarWinds Sets Precedent, and Arrow Electronics Introduces AI Enhancements

[00:00:00] It's Monday, March 25, 2024, and I'm Dave Solval, three things to know today.

[00:00:07] Accenture slashes their 2024 revenue forecast as consulting demand wanes.

[00:00:13] SolarWinds sets a precedent for software providers in support of the U.S. cybersecurity

[00:00:18] efforts and Aeroelectronics introduces AeroSphere Assistant, AI-driven enhancements for cloud

[00:00:24] business management.

[00:00:26] This is the Business of Tech.

[00:00:30] Today's episode is supported by Huntress.

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[00:01:22] Let's start off the week with our weekly market review.

[00:01:25] The Russell 2000 that proxy for small business was down about a half a percentage point last

[00:01:29] week, but is up near a percentage point in the last 30 days and down 1.15% for the year.

[00:01:36] The S&P 600 with looks at the smallest companies was up last week and as roughly even for

[00:01:42] the year.

[00:01:44] Consulting might be having a tough year.

[00:01:46] According to Business Insider, Accenture has cut its revenue forecast for 2024 as demand

[00:01:51] for consulting services' slopes.

[00:01:54] Intermajor consulting firms are also experiencing a decline in demand and dilute his launch or

[00:01:59] reorganization to cut costs.

[00:02:02] According to report from the White House Council of Economic Advisers, the Biden administration

[00:02:07] believes that full employment has been achieved at the labor market, contrary to inflation

[00:02:13] fighting economic orthodoxy.

[00:02:15] They argue that there is little evidence that tight labor markets have caused higher inflation.

[00:02:21] The report highlights the benefits of full employment such as shrinking racial and gender

[00:02:25] gaps in employment and strong bargaining powers for workers.

[00:02:29] The job market dynamics differ from free pandemic times with strong inflation eating away

[00:02:35] away gains but nominal wages of sore and there are gains in real terms.

[00:02:42] Consumer sentiment may be weakening based on indicators such as apparel, grocery and

[00:02:47] restaurant sales.

[00:02:48] Companies like Lulemon, Darden Restaurants and General Mills has reported signs of customer

[00:02:53] softness.

[00:02:55] Rising gas prices are also impacting the consumer feelings about the economy.

[00:02:59] While the National Retail Federation forecast model retail sales growth for 2024, Americans

[00:03:05] are starting to seek cheaper alternatives.

[00:03:09] According to internet search data and reporting in the small business blog, the top businesses

[00:03:14] that Americans want to start in 2024 are cleaning, vending machines, drop shipping, e-commerce,

[00:03:21] consulting, clothing, ATMs, landscaping, pressure washing and lawn care businesses.

[00:03:26] Interesting, most of these businesses do not require previous knowledge experience or qualifications.

[00:03:33] Why do we care?

[00:03:36] Mankind to believe the big consulting shift is about prioritizing operational efficiency

[00:03:40] over grades.

[00:03:42] Just a couple of that was some consumer sentiment softness and it's all representative

[00:03:46] of the vibes economy, particularly when you look at full employment.

[00:03:50] Note that we're seeing conditions we've not seen before so historical data is not

[00:03:55] necessarily represented.

[00:03:57] My friend Carl Polychuk likes to remind everyone that you're an economy of one.

[00:04:01] Rather a useful perspective when the data is new like this.

[00:04:05] As such is this should be used directionally.

[00:04:08] Trend lines that look solid yet not explosive.

[00:04:12] A China-linked threat group, UNC 5174 has been conducting aggressive cyber campaigns

[00:04:21] by exploiting security flaws in connect-wise screen connect and F5 big IP software.

[00:04:28] The group is believed to be a former member of Chinese activist collectives and is now

[00:04:32] acting as a contractor for China's Ministry of State Security, targeted research institutions,

[00:04:38] businesses and geos and government organizations.

[00:04:42] So-phose analysts have also observed an increase in malicious activity involving screen connect

[00:04:47] which is that remote access tool.

[00:04:49] Thread actors have been leveraging screen connect to launch various attacks and delivered

[00:04:53] different types of malware including Lockbit, ASync Rat, Asword Steelers and Cobal Strike

[00:04:59] payloads.

[00:05:01] SolarWinds has become the first software provider to submit the Securus Software Development

[00:05:05] Self-Attestation marking a significant milestone in cybersecurity standards.

[00:05:11] The self-attestation aligns with US government requirements and supports national cybersecurity

[00:05:16] initiatives promoting transparent information sharing and proactive cybersecurity measures.

[00:05:22] A newly discovered vulnerability in Apple's M series chips allows attackers to extract

[00:05:27] secret encryption keys from Macs during cryptographic operations.

[00:05:32] The flaws stemming from the micro-architectural design of the chips cannot be directly patched.

[00:05:39] Instead it can only be mitigated by implementing defenses in third-party cryptographic software

[00:05:45] which may significantly downgrade performance.

[00:05:49] The vulnerability can be exploited when the targeted cryptographic operation and malicious

[00:05:53] application run on the same CPU cluster.

[00:05:57] The researchers name the attack GoFetch and provide it in-site into the behavior of the

[00:06:02] chips data memory dependent prefecture or DMP which can leak information through cache

[00:06:07] side channels.

[00:06:09] Apple M3 chips can disable DMP by enabling data independent timing – this is not possible

[00:06:15] on M1 and M2 processors.

[00:06:19] Why do we care?

[00:06:21] I wanted to continue to keep an eye on the connect-wise screen connect exposure and

[00:06:24] this issue appears to be as critical as was applied.

[00:06:28] I checked with a trusted cybersecurity source who tells me there's still significant

[00:06:32] exposure in the number of servers still unpatched and to assume any unpatched servers are completely

[00:06:37] owned.

[00:06:39] SolarWinds is certainly leading into being a model student which is a smart move considering

[00:06:44] a recent history – disclosure, shareholder.

[00:06:47] The M-chip vulnerability is one of those security stories most of us can do very little about.

[00:06:52] We'll all be in form.

[00:06:55] There's not much to do, keep for now.

[00:07:01] Global distributor Arrow Electronics has launched ArrowSphere Assistant – an AI application powered

[00:07:06] by Microsoft Azure.

[00:07:08] The AI assistant aims to streamline workflows, provide insights into new business opportunities

[00:07:14] and offer actionable security intelligence and financial assistance to partners.

[00:07:19] Arrow claims that the assistant can generate detailed reports and recommendations helping

[00:07:23] partners manage their cloud businesses more effectively.

[00:07:27] 22 miles has released a train show AI Assistant that streamlines event operations and attendee

[00:07:34] support through a chat interface.

[00:07:36] The AI assistant offers real-time event information, wayfinding, and self-service support in multiple

[00:07:42] languages.

[00:07:43] It can be deployed on digital signage, websites, or within event apps.

[00:07:48] A limited number of trade organizers can use the AI assistant for free for one year.

[00:07:54] Why do we care?

[00:07:56] Both of these are examples of a new space for customer experience, providing specific

[00:08:01] situational guidance.

[00:08:03] I'm noting these because they're a precursor to the concept of AI talking to AI.

[00:08:08] In order for your personal AI to learn and adapt, it would lead to talk to specialized

[00:08:13] ones.

[00:08:14] Consider the event scenario.

[00:08:16] Your attending event in your personal assistant can tap into a dedicated trade show AI

[00:08:21] assistant for help.

[00:08:22] It can connect those assistants and get the information you'd need.

[00:08:27] To get there at you, in the assistance, I'll need to be in place and expect to see

[00:08:31] more and more specialized assistants that deliver experiences such as these.

[00:08:39] Thanks for listening!

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