Next-Gen MSPs, AI Growth, Cybersecurity Spending, and Apple's Health Tech Advances

[00:00:02] [SPEAKER_00]: It's Monday, September 16, 2024, and I'm Dave Solple, three things to note today.

[00:00:07] [SPEAKER_00]: Next-Gen MSPs leverage AI and compliance services to stay competitive, SISO's Boost Cybersecurity

[00:00:15] [SPEAKER_00]: Spending for Next-Dear.

[00:00:16] [SPEAKER_00]: Open AI surpasses 11 million subscribers as their O1 preview models highlight a growing

[00:00:23] [SPEAKER_00]: divide in AI use cases for managed services providers, and Apples secures FDA approvals

[00:00:29] [SPEAKER_00]: for the new health tech while Microsoft's security event highlights a need for better collaboration.

[00:00:36] [SPEAKER_00]: This is the Business of Tech.

[00:00:40] [SPEAKER_00]: Forester's budget priorities for SISO's for next year emphasizes the importance of

[00:00:45] [SPEAKER_00]: API and software supply chain security, urging investments in application security and human

[00:00:52] [SPEAKER_00]: risk management.

[00:00:53] [SPEAKER_00]: With 90% of SISO's expecting budget increases, the focus should be on treating cybersecurity

[00:00:59] [SPEAKER_00]: as a business decision, managing tech sprawl and enhancing cloud security.

[00:01:04] [SPEAKER_00]: The report highlights the need for robust safeguards against threats to software supply

[00:01:09] [SPEAKER_00]: chains and IoT devices, advocating for a pragmatic approach to cybersecurity spending that supports

[00:01:15] [SPEAKER_00]: revenue growth and operational resilience.

[00:01:18] [SPEAKER_00]: A recent report by open systems reveals that 71% of organizations plan to increase their

[00:01:24] [SPEAKER_00]: IT budgets next year, particularly for SASE related expenses or secure access service

[00:01:32] [SPEAKER_00]: edge.

[00:01:33] [SPEAKER_00]: Despite infrastructure issues and a skills gap, many organizations are allocating additional

[00:01:38] [SPEAKER_00]: funds for SISO implementation.

[00:01:41] [SPEAKER_00]: Many are also looking to outsource SASE management with 70% currently relying on external

[00:01:48] [SPEAKER_00]: providers.

[00:01:50] [SPEAKER_00]: Oracle's Q1 earnings report for 2025 showed better than expected results, with shares

[00:01:55] [SPEAKER_00]: jumping 13% after reporting earnings per share of $1.39 and revenue of $13.31 billion.

[00:02:04] [SPEAKER_00]: The company anticipates revenue growth of 8 to 10% for the next quarter, and has announced

[00:02:08] [SPEAKER_00]: a partnership with Amazon Web Services to provide database services.

[00:02:13] [SPEAKER_00]: Oracle's cloud infrastructure revenue surge 45% and plans to expand its data center operation

[00:02:19] [SPEAKER_00]: significantly were discussed.

[00:02:23] [SPEAKER_00]: The August Consumer Price Index shows that while inflation is largely controlled, housing

[00:02:27] [SPEAKER_00]: prices remain a significant concern, contributing to over 70% of the increase in core CPI.

[00:02:34] [SPEAKER_00]: An analysis of the MSP501 published by Channel Futures highlights the contrast of so-called

[00:02:42] [SPEAKER_00]: next-gen MSPs.

[00:02:44] [SPEAKER_00]: Next-gen MSPs distinguish themselves through innovative client acquisition strategies, prioritizing

[00:02:50] [SPEAKER_00]: webinars and industry events, and focusing on cutting edge vendor solutions and co-selling

[00:02:55] [SPEAKER_00]: partnerships.

[00:02:56] [SPEAKER_00]: Their growth is driven by advancements in AI and manage compliance services.

[00:03:01] [SPEAKER_00]: To maintain their competitive edge, they must foster deeper collaborations with vendors

[00:03:06] [SPEAKER_00]: and continuously innovate, ensuring a synergistic relationship that leverages shared strengths,

[00:03:12] [SPEAKER_00]: in technology, and market insights.

[00:03:15] [SPEAKER_00]: Why do we care?

[00:03:17] [SPEAKER_00]: A SAAC or secure access service-edge architecture combines networking and security as

[00:03:23] [SPEAKER_00]: a service function into a single cloud-delivered service at the network edge.

[00:03:28] [SPEAKER_00]: A figure you might need a definition, and don't feel bad, I did too.

[00:03:33] [SPEAKER_00]: Addressing the infrastructure challenges and skills gap with scalable managed services can

[00:03:38] [SPEAKER_00]: provide a clear value proposition here.

[00:03:41] [SPEAKER_00]: The analysis here underscores the need for traditional MSPs to evolve by embracing new technologies

[00:03:46] [SPEAKER_00]: and deeper collaboration with their vendors, engaging in co-selling and leveraging advanced

[00:03:51] [SPEAKER_00]: solutions can help maintain relevance in an evolving market.

[00:03:58] [SPEAKER_00]: With as many breaches and security concerns as I report in this show, it should be obvious

[00:04:03] [SPEAKER_00]: that cybersecurity is not just about technology, but also the human expertise needed to interpret

[00:04:09] [SPEAKER_00]: and respond to complex threats.

[00:04:12] [SPEAKER_00]: Huntress is focused on elevating SMBs and MSPs around the world.

[00:04:17] [SPEAKER_00]: Huntress has a suite of fully-managed cybersecurity solutions powered by a 24x7 human-led

[00:04:23] [SPEAKER_00]: stock dedicated to continuous monitoring, expert investigation and rapid response.

[00:04:29] [SPEAKER_00]: And the proof is the execution.

[00:04:31] [SPEAKER_00]: Huntress is the number one rated EDR for SMBs on G2.

[00:04:37] [SPEAKER_00]: Want to know more about the platform?

[00:04:39] [SPEAKER_00]: Visit huntress.com slash MSP radio to learn more.

[00:04:46] [SPEAKER_00]: Open AI has introduced the O1 preview series of reasoning models designed to tackle complex

[00:04:52] [SPEAKER_00]: problems in science, coding and math.

[00:04:55] [SPEAKER_00]: These models emphasize deeper reasoning before responding, achieving significant performance

[00:05:00] [SPEAKER_00]: improvements over previous models.

[00:05:03] [SPEAKER_00]: The O1 series includes enhanced safety measures and is particularly useful for complex

[00:05:08] [SPEAKER_00]: tasks.

[00:05:10] [SPEAKER_00]: Additionally, Open AI is releasing O1 Mini, a cost-effective model optimized for coding.

[00:05:16] [SPEAKER_00]: Access to these models is available to chat GBD plus and team users with plans for broader

[00:05:22] [SPEAKER_00]: access and feature enhancements in the future.

[00:05:25] [SPEAKER_00]: TechCrunch noted that while they excel at complex problem solving, they are significantly

[00:05:29] [SPEAKER_00]: more expensive and less effective for simpler tasks compared to GPT 40.

[00:05:35] [SPEAKER_00]: The model's multi-step reasoning is promising for tackling big questions but often over

[00:05:41] [SPEAKER_00]: complicates simpler in-for-ease.

[00:05:44] [SPEAKER_00]: One useful thing noted that while it's significantly improved reasoning, it still has limitations,

[00:05:50] [SPEAKER_00]: including errors and hallucinations, and relies on the underlying GPT 40 model.

[00:05:56] [SPEAKER_00]: And big technology did a deep dive.

[00:05:58] [SPEAKER_00]: I consider including it in big ideas later in the week, so let me quote directly.

[00:06:03] [SPEAKER_00]: Quote People who use AI for writing, editing, and marketing tasks will likely be disappointed,

[00:06:10] [SPEAKER_00]: but people they use it for coding, math, and science research will be thrilled.

[00:06:15] [SPEAKER_00]: An open AI's testing people who used O1 for writing actually preferred it less than GPT 40.

[00:06:23] [SPEAKER_00]: But those who used it from mathematical calculation, data analysis, and computer programming

[00:06:28] [SPEAKER_00]: preferred it by a wide margin and quote.

[00:06:32] [SPEAKER_00]: Open AI's chat GPT has surpassed 11 million paying subscribers generating over 225 million in

[00:06:40] [SPEAKER_00]: monthly revenue according to COO, Brad Lightcap.

[00:06:43] [SPEAKER_00]: This includes 10 million standard subscribers and 1 million on higher priced business plants,

[00:06:49] [SPEAKER_00]: with users employing the service for tasks like coding, writing, and research.

[00:06:55] [SPEAKER_00]: By do we care? There's a potential bifurcation of AI models here with an a single product line that's

[00:07:02] [SPEAKER_00]: already notable, and might even result in a split of MSP versus their customers.

[00:07:07] [SPEAKER_00]: Customers may want the primary model, and technically use cases for managed IT will use the reasoning model.

[00:07:13] [SPEAKER_00]: Of course, until they merge at some point the future or the product guides to the correct model.

[00:07:19] [SPEAKER_00]: Instead, I think that key insight is that my Somalia analogy remains strong,

[00:07:24] [SPEAKER_00]: like an expert recommending a wine with dinner, a solution provider matches product,

[00:07:30] [SPEAKER_00]: and a bedded model to a customer use case.

[00:07:33] [SPEAKER_00]: Example, the fact that O1 preview is less favored for tasks like writing and marketing,

[00:07:39] [SPEAKER_00]: but excels it coding and math aligns with the core services MSPs typically offer.

[00:07:43] [SPEAKER_00]: MSPs should assess whether it's worth deploying these models for costly or complex projects

[00:07:48] [SPEAKER_00]: versus sticking with the more general models for everyday operations.

[00:07:55] [SPEAKER_00]: And some updates on previously reported stories. The FDA has approved a software update

[00:08:01] [SPEAKER_00]: that will enable Apple's AirPods Pro 2 to function as over-the-counter hearing aids for individuals

[00:08:06] [SPEAKER_00]: with mild to moderate hearing loss. The future amplify specific sounds while reducing background

[00:08:13] [SPEAKER_00]: noise and adjust automatically based on a hearing test conducted through the Apple Health app.

[00:08:20] [SPEAKER_00]: The FDA has also approved sleep apnea detection for the Apple Watch Series 9, Series 10,

[00:08:26] [SPEAKER_00]: and Watch Ultra 2, which were set to launch with Watch OS 11. This feature requires 10 nights of sleep

[00:08:33] [SPEAKER_00]: data over 30 days to assess risk, but it is not a diagnostic tool. So users should consult

[00:08:39] [SPEAKER_00]: healthcare providers. Apple follows other companies like Y things and Samsung and offering

[00:08:44] [SPEAKER_00]: this capability while blood oxygen detection has been disabled in the US due to a patent dispute.

[00:08:52] [SPEAKER_00]: I also want to update you on the previously mentioned Microsoft Security event, which happened last week.

[00:08:58] [SPEAKER_00]: The Microsoft Windows endpoint security ecosystem summit highlighted discussions among security

[00:09:03] [SPEAKER_00]: resulted in few concrete actions or agreements. While Microsoft shared its safe deployment

[00:09:10] [SPEAKER_00]: practices and discussed potential improvements in security collaboration, there was a lack of

[00:09:15] [SPEAKER_00]: cross-industry consensus on specific advancements. The company plans to invest in Windows

[00:09:21] [SPEAKER_00]: Security features address issues related to software updates and implement anti-tampering

[00:09:26] [SPEAKER_00]: protections. A Microsoft will host a special event today to announce the next phase of

[00:09:32] [SPEAKER_00]: copilot innovation. By the way, care? I previously mentioned the importance of Apple and health care,

[00:09:39] [SPEAKER_00]: and so it's important to highlight when they crossed the threshold from promise to reality

[00:09:43] [SPEAKER_00]: on FDA approvals as a quick side mode my doctor didn't even know of these things.

[00:09:50] [SPEAKER_00]: The lack of tangible actions of the Microsoft Windows endpoint security ecosystem summit indicates

[00:09:55] [SPEAKER_00]: a missed opportunity for stronger cross-industry collaboration. MSPs that provide security

[00:10:00] [SPEAKER_00]: services will need to continue filling the gaps as medical aberration isn't driving

[00:10:05] [SPEAKER_00]: major advances at this point. That's also continued to be a risk which providers have to absorb,

[00:10:11] [SPEAKER_00]: and so pushing vendors to take more responsibility particularly via assist secure by design

[00:10:16] [SPEAKER_00]: initiative remains imperative. Looking to reach an audience of thousands of MSPs and IT service

[00:10:25] [SPEAKER_00]: put your ad right here on the business of tech and be on the show that 64% of MSPs

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[00:11:00] [SPEAKER_00]: to book a time to talk. I'm looking forward to that discussion.

[00:11:06] [SPEAKER_00]: Thanks for listening today. His national cinnamon raisin bread day and it's national step

[00:11:11] [SPEAKER_00]: family day. I have a number of step siblings. I'm very close to. That's what I wanted to do a shout out

[00:11:18] [SPEAKER_00]: I'm speaking out of webinar for core view this week entitled Differentiate Your MSP Business by

[00:11:24] [SPEAKER_00]: governing and securing M365. Join me on the 19th of September 10 a.m. Eastern with a link to

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