Navigating AI Challenges, NinjaOne's Strategic Acquisition, and the Future of Local News

[00:00:01] It's Wednesday, January 29th, 2025, and I'm Dave Solt. Four things to know today. Big AI plans and bigger headaches, why enterprises are struggling to make AI work. NinjaOne snaps up DropSuite for $252 million, a power move in IT and data protection. Good Daily's AI newsletters are everywhere, but are they good for news? And, from smarter sales bots to web-savvy AI, the latest tech announcements you want to know about.

[00:00:30] This is the Business of Tech. There will be more deep seek fallout to cover, but today I want to hit some other stories of note. A recent survey by Sivo reveals that nearly 90% of companies are facing challenges in executing and scaling their artificial intelligence initiatives, which has led to significant project delays. The survey, which included responses from 1,400 industry professionals, identified budget constraints, skills gaps, and computing availability as the primary advantage.

[00:01:01] Additionally, more than 80% of organizations cited shortages of GPUs as the main reason for project delays, with over one-third of respondents reporting that these delays lasted between three months and six months. Despite these hurdles, many businesses are committed to advancing their AI goals, with projections indicating double-digit year-over-year spending growth, primarily driven by AI upgrades.

[00:01:23] A recent survey by Salesforce's MuleSoft reveals that 93% of enterprise IT leaders plan to implement AI agents within the next two years. Despite this optimism, many organizations are struggling with delivery times and integration challenges. 29% of projects missed timelines in 2024, while 80% cite data integration as a significant hurdle.

[00:01:47] The report highlights that companies average 897 applications, but only about 29% are connected, complicating the effectiveness of AI agents. IT leaders expect an 18% increase in projects this year, with an average projected spend of $16.9 million on IT staff. As organizations embrace the technologies, experts believe that AI agents will not only enhance productivity, but also evolve into more sophisticated systems capable of performing complex tasks.

[00:02:16] Notable examples include PenFed Credit Union, which achieved a 23% increase in chatbot interactions and improved case resolution, and ADECO, which aims to enhance its recruitment process through AI-driven candidate selection. A recent survey conducted by Sophos, which included 400 IT leaders, revealed that a significant 89% are worried that flaws in generative AI tools could jeopardize their organization's cybersecurity strategies.

[00:02:45] Despite 65% of respondents having adoptive generative AI capabilities, concerns persist regarding over-reliance on these technologies, with 87% fearing a lack of accountability in cybersecurity. The report also highlighted that while larger organizations prioritize improved protection, smaller companies value reduced employee burnout as a key benefit of AI tools.

[00:03:08] Additionally, 75% of IT leaders agree that the costs associated with generative AI in cybersecurity are challenging to quantify. Why do we care? AI remains a top IT priority, but real-world implementation is much messier than the hype suggests. Organizations face hardware shortages, talent gaps, data silos, and security concerns, all of which could slow AI's actual impact.

[00:03:33] Companies that invest in solving the foundational issues data integration, compute availability, and talent development will gain a real edge. Two of those are core competencies of service providers, and notably, benefit from AI driving cheaper and cheaper. Are your customers getting the most from their Microsoft 365 Business Premium subscriptions? Are you delivering maximum value while ensuring best-in-class margins?

[00:04:01] Nerdio's new modern work features let you streamline the management of Microsoft technologies like Azure Virtual Desktop, Windows 365, Intune, and Defender. Reduce the need for multiple tools, consolidate your vendor stack, and deliver greater value to your customers. Help your customers maximize their investments, free up your team for strategic tasks, and drive meaningful business outcomes.

[00:04:25] With Nerdio Manager for MSP, a single flexible platform with mix-and-match plans ensures a flexible, perfect fit for you and your customers. Deliver solutions that achieve real business impact. Visit GetNerdio.com to find out more. NinjaOne has announced its intent to acquire DropSuite, a leader in cloud backup and protection solutions, for approximately $252 million.

[00:04:52] The deal, which is expected to close in the first half of this year, is subject to shareholder and regulatory approvals. The combined offerings of NinjaOne and DropSuite aim to enhance organizational resilience against data loss, ransomware attacks, and compliance challenges. NinjaOne's platform will integrate DropSuite's capabilities, providing a comprehensive solution for safeguarding critical business data across both endpoints and applications. There's some insight into DropSuite's business as well.

[00:05:20] In another recent update I spotted, DropSuite announced impressive growth with an annual recurring revenue of approximately $50 million. The milestone reflects the company's expanding market presence and commitment to delivering reliable services. With a global workforce of around 150 employees, DropSuite serves over 1.56 million paid users and collaborates with more than 780 partners across over 100 countries. The company's market capitalization stood at $194.3 million.

[00:05:50] Why do we care? This is another platform expansion play in the MSP management space. DropSuite isn't just a nice add-on, it is a growing business. With $50 million in annual recurring revenue, 1.6 million paid users, and over 780 partners, it's demonstrated strong adoption among providers and IT teams. So the acquisition strategy makes sense for NinjaOne strategically.

[00:06:14] It strengthens its security and compliance positioning, aligns with market demand for integrated IT plus backup solutions, and adds a fast-growing business to its portfolio. But success isn't guaranteed. Integration, market positioning, and customer adoption will determine whether the move actually enhances NinjaOne's competitive edge or just adds complexity. If executed well, the acquisition could propel NinjaOne into a leadership position in the IT management and data protection space.

[00:06:42] And if not, it risks becoming an expensive, underutilized add-on. Listeners really take to me providing AI use cases, so here's one. A network of automated newsletters called Good Daily is operating in 355 towns and cities across the U.S., providing local news content generated by artificial intelligence.

[00:07:04] Each newsletter, including ones like Good Day Fort Collins, shares identical testimonials and branding, giving the impression of local authenticity. The founder, Matthew Henderson, claims the operation uses technology to tackle the economic challenges faced by local news outlets. However, critics argue that these newsletters rely on existing local media, often aggregating their stories without proper attribution, which raises ethical concerns about transparency and journalism standards.

[00:07:32] Good Daily operates in 47 states and aims to make local news more accessible, despite facing skepticism from established news organizations. Henderson estimates that the newsletters reach around 400,000 subscribers, although the actual engagement rates are reportedly low. He operates the business alone. Why do we care? Good Daily's AI-generated newsletters reflect a growing trend.

[00:07:59] AI as a content aggregator and distributor rather than an original news source. Although that's part of my value, content aggregator. Although I differ in that I add human commentary. Local journalism has been in decline for years, and with shrinking ad revenue and newsroom layoffs, Good Daily presents itself as a tech-driven solution, filling the gap left by shuttered local newspapers. But there's a key issue. It's not actually producing original journalism.

[00:08:25] Instead, it aggregates and repackages existing stories, often without that proper attribution. This raises a fundamental question. If AI-driven newsletters depend on human-reported journalism, what happens when those local outlets disappear? Traditional news organizations invest in original reporting, covering city council meetings, local crime, and community events. If AI newsletters pull from those sources without contributing to the reporting ecosystem, they accelerate the very decline they claim to solve.

[00:08:55] And a bunch of product announcements that caught my attention. I didn't mention it, so I wanted to. OpenAI released a research preview of Operator, an agent capable of performing web tasks independently. Operator can handle repetitive tasks, such as filling out forms and ordering groceries. It's powered by the new computer-using agent model, which effectively interacts with graphical user interfaces.

[00:09:19] OpenAI also released ChatGPT Gov, a new version of its AI-powered chatbot aimed at U.S. government agencies. The platform allows agencies to access advanced AI capabilities while managing their own security and compliance needs. Microsoft announced that the driver synchronization feature in Windows Server Update services will be deprecated in just 90 days, with the official end date set for April 18, 2025.

[00:09:44] Administrators are urged to prepare for the change, as after the deprecation, drivers will only be available on the Microsoft Update catalog, and importing them into WSUS will no longer be possible. Microsoft encourages users to consider alternatives such as device driver packages or cloud solutions like Microsoft Intune and Windows Auto Patch.

[00:10:04] Microsoft unveiled its plans for the first release wave of 2025, focusing on significant updates for Dynamics 365, expanded capabilities for Copilot, and innovations for the Power Platform. The wave will be implemented between April and September 2025, emphasizing automation and artificial intelligence across Microsoft's product suite. Key enhancements include improvements to Copilot for Sales, Service, and Finance, which aim to boost productivity and streamline workflows.

[00:10:32] Highlights for Dynamics 365 include the introduction of AI-driven features in Sales and Customer Service, while the Power Platform will see advancements in app creation and document processing. Zoom updated its Team Chat platform, featuring a redesigned Sidebar and new artificial intelligence enhancements. The redesigned Sidebar allows users to organize chats, channels, and applications more efficiently, while features like drag-and-drop tab arrangement and advanced sorting tools.

[00:11:00] Additionally, the AI Companion assists users by summarizing unread conversations and generating action item lists, train-malining workflows across various Zoom tools. And a new startup called Polona AI offers professional-grade artificial intelligence sales agents that can operate around the clock. These AI agents are designed to engage customers through text, calls, and chat, effectively acting as brand mascots. By training these agents using existing company knowledge,

[00:11:30] Polona aims to provide customized interactions, remembering customer details for future conversations. According to the company, this AI technology is built on psychological principles and persuasion literature, enabling it to build customer relationships more efficiently than human sales staff. The AI can also handle most customer service inquiries, escalating complex issues to human representatives only when necessary. Polona claims that its agents exhibit superior emotional intelligence,

[00:12:00] outperforming both human staff and other available AI solutions in industry benchmarks. Why do we care? Operator is early preview, and ChatGPT.gov is a repackaging. That said, agents interacting with browsers is a significant area of interest in the future. I'm cautious. RPA tools have promised intelligent automation for years, but GUI-based automation remains fragile.

[00:12:26] Zoom continues to offer products to expand its presence at the productivity layer. With some of the recent pushback to Microsoft, it will be interesting to see if these gain market share. Polona's AI claim that its AI sales agents outperform human reps in customer interactions is bold. The idea of AI-driven sales reps is not new, but Polona is leaning into psychological principles and persuasion tactics, positioning its solution as emotionally intelligent AI rather than a simple chatbot.

[00:12:55] If the AI costs are driven dramatically down in our post-DeepSeq era, this is an area of interest. Thanks for listening. Today is National Puzzle Day, and Happy Chinese New Year. 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.

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