Privacy Trends, AI Partnerships, MSP Consolidation, and Risk Management Insights

[00:00:01] It's Wednesday, November 6th, 2024, and I'm Dave Sol. Four things to know today.

[00:00:07] Privacy awareness soars as Cisco survey links consumer trust to AI and data protection practices.

[00:00:13] AWS and PAX 8 launch programs to empower partners in AI and cloud commerce marketplaces.

[00:00:19] Consolidation and certification shaping up the MSP landscape as we have Nerdio, Evergreen, and ConnectWise.

[00:00:25] And proactive risk management and compliance takes center stage as CIOs turn disruptions into funding opportunities.

[00:00:33] This is the Business of Tech.

[00:00:37] Cisco's 2024 Consumer Privacy Survey reveals a strong correlation between privacy awareness and trust in artificial intelligence.

[00:00:46] The survey found that 53% of consumers are aware of their national privacy laws, a significant increase from previous years.

[00:00:53] And 81% of those informed individuals feel their data is protected.

[00:00:57] Nearly 60% of those aware of privacy laws express comfort in using AI technologies.

[00:01:03] Additionally, the use of generative AI has surged, with 23% of respondents using it regularly.

[00:01:10] However, 44% remain unaware of its even existence.

[00:01:14] The survey also highlights that 75% of consumers won't purchase from organizations they don't trust with their data,

[00:01:21] indicating a shift towards privacy-centric consumer behavior.

[00:01:25] Notably, younger consumers are more proactive in protecting their privacy,

[00:01:29] with 49% of those aged 25 to 34 having switched providers over data policies.

[00:01:35] Overall, 70% of respondents believe privacy laws positively impact society,

[00:01:41] with 81% supporting a federal privacy law in the United States.

[00:01:47] Why do we care?

[00:01:49] Cisco's data reveals a consumer base that is becoming increasingly informed about data privacy,

[00:01:54] with high expectations for companies' transparency and commitment to secure data practices.

[00:02:00] For providers, this underscores the importance of embedding privacy into their business models,

[00:02:05] educating consumers on AI technologies, and preparing for an imminent landscape of stricter privacy regulations.

[00:02:11] Investing in these areas isn't just about compliance.

[00:02:15] It's about meeting evolving consumer expectations, building trust, and ultimately driving growth in a privacy-conscious market,

[00:02:23] even if there isn't a federal law requiring privacy in the U.S. right now.

[00:02:31] Did you know that there's a SIM that's made for IT admins and is free for internal use for MSPs?

[00:02:38] BlueMira's cloud platform makes SIM simple and affordable.

[00:02:42] With automated threat detection, 24 by 7 expert support, managed detections and guided response,

[00:02:49] you can protect your customers from ransomware and meet compliance requirements on an SMB budget.

[00:02:54] Don't add syslog to your MDR and let them call it a SIM.

[00:02:59] You deserve better.

[00:03:01] Get started with your free NFR account at BlueMira.com slash radio.

[00:03:07] That's B-L-U-M-I-R-A dot com slash radio.

[00:03:15] PAX 8 has launched the Voyager Alliance Partner Program, designed to provide global partners with a modern framework for success in the cloud commerce marketplace.

[00:03:24] The program focuses on tailored support and a tiered model that unlocks new benefits as partners progress.

[00:03:29] According to Craig Donovan, PAX 8's Chief Experience Officer, the program emphasizes a partner-first approach, offering advantages such as curated event experiences, tiered pricing, and enhanced technical support.

[00:03:43] Future benefits will include a rewards system where partners can earn points to reinvest in PAX 8 services.

[00:03:51] Amazon Web Services has announced the launch of the Generative AI Partner Innovation Alliance, aimed at scaling the reach of its Generative AI Innovation Center.

[00:04:00] This initiative connects customers with AWS AI and ML experts to develop Generative AI solutions.

[00:04:07] Since its launch in June 2023, the center has assisted thousands of customers, with over 50% of proof-of-concept solutions now in production.

[00:04:16] The alliance kicks off with nine partners, including Booz Allen Hamilton and Crayon, bringing specialized expertise to enhance customer support.

[00:04:25] Why do we care?

[00:04:27] I'm not one to dwell too much on partner programs.

[00:04:31] Hat-tipped to Rich Freeman, who highlighted the lean into marketplaces.

[00:04:34] I want to observe this.

[00:04:36] Sure, marketplaces are a particular kind of distribution.

[00:04:41] Distribution refers to the process of delivering goods and services from producers to consumers.

[00:04:46] It involves all the activities, logistics, and systems that facilitate the movement of products from the point of origin to the end user.

[00:04:52] And in fact, a marketplace is one of those systems.

[00:04:56] Let's not get too bent around the axle here.

[00:05:00] That said, use all the resources available to you, including Amazon's.

[00:05:07] Nerdio has announced the expansion of its Nerdio Manager for MSP platform with new modern work capabilities, enhancing its cloud management services for managed service providers.

[00:05:17] This update allows MSPs to oversee their clients' entire Microsoft 365 environments, streamlining operations, and improving efficiency.

[00:05:26] Key features include centralized management for Teams, OneDrive, and Exchange Online, alongside simplified identity management with IntraID and CIS policies.

[00:05:36] The new per-tenant pricing model offers a flat rate for MSPs, regardless of user count, making it more affordable for businesses of all sizes.

[00:05:46] CEO Vadim Vladimiski emphasized that these enhancements simplify cloud management while ensuring high levels of security and compliance.

[00:05:53] And Evergreen announced its recent acquisitions of managed services providers PCGIT and Netronom as part of its goal to reach 100 MSPs.

[00:06:04] ConnectWise has strengthened its European cybersecurity efforts by announcing that its recently acquired company, Skykick, has achieved compliance with the EU's Network Information Security Directive, known as NIST-2, and earned the Cloud Security Alliance Level 2 certification.

[00:06:19] This compliance is crucial for accelerating growth in the European market, according to Patrick Beggs, Chief Information Security Officer at ConnectWise.

[00:06:28] Skykick's Level 2 certification places it among only three other companies globally that have attained this status.

[00:06:34] With the acquisitions of Skykick and Axion, ConnectWise is expanding its secure service offerings, providing MSPs with essential tools for compliance and data protection.

[00:06:44] Aline Sakara from the Cloud Security Alliance highlighted that this certification underscores a significant commitment to cloud security in highly regulated markets.

[00:06:53] Why do we care?

[00:06:55] The per-tenant pricing model is designed to be cost-effective regardless of user count, and it could make Nerdio's platform more appealing to providers with smaller clients.

[00:07:04] This shift may prompt competitors to re-evaluate their own pricing models and feature sets, especially for smaller or growing MSPs looking to enhance Microsoft's 365 management without added overhead.

[00:07:16] And this pattern of consolidation offers smaller MSPs an exit strategy in a competitive market, though it could lead to reduced market diversity.

[00:07:25] For clients, there's a dual effect.

[00:07:28] While larger entities like Evergreen may offer better resources and standardized services, clients could also see less customization or flexibility as smaller niche MSPs are absorbed.

[00:07:39] Certifications like NIST-2 and CSA Level 2 can open doors in regulated markets, but don't inherently guarantee comprehensive security.

[00:07:48] MSPs must ensure that certifications are part of a broader, robust cybersecurity framework.

[00:07:56] And time for a few big ideas.

[00:07:58] In a recent article, Jenica McHugh, Managing Director at Accenture, discusses how IT leaders can turn disruptions like service outages and data breaches into opportunities for growth.

[00:08:11] As crises are inevitable, she emphasizes that CIOs should use these events to advocate for funding aimed at risk mitigation and cost avoidance.

[00:08:20] With a notable shift towards outcome-based contracts, vendors are now more engaged in the success of projects, sharing risks and rewards with their clients.

[00:08:30] Moreover, companies must prioritize their public reputation during a crisis, developing rapid response plans to support customers effectively.

[00:08:39] McHugh highlights that tech leaders are now evaluated not just on cost management, but also on non-financial outcomes, underscoring the evolving role of the CIO in driving growth and innovation.

[00:08:51] And in an article in Dark Reading, Vishal V8 Haraspad, CEO and co-founder of Resilience, writes that in the wake of July's CrowdStrike outage, which reportedly cost Fortune 500 companies over $5 billion, industry leaders are urged to reevaluate their approach to vendor reliability and risk management.

[00:09:11] Despite the chaos, CrowdStrike Falcon remains highly effective, with fewer than 3% of clients experiencing a cyber insurance claim.

[00:09:18] Experts recommend businesses assess their vendors' overall reliability before making any switches, as the costs of changing providers can extend beyond monetary figures.

[00:09:29] They also stress the importance of not overhauling update processes, as rapid response to emerging threats is crucial.

[00:09:37] Lastly, decision makers are cautioned against panic-driven reactions, which could introduce new vulnerabilities,

[00:09:43] emphasizing the need for proactive risk management strategies to maintain business continuity in the face of cyber incidents.

[00:09:50] And in Channel Futures, Kaseya CEO Fred Vocala is actively influencing Congress on cybersecurity regulations,

[00:09:58] emphasizing the need for compliance to protect small and mid-sized businesses from cyber threats.

[00:10:03] During a recent interview at DattoCon in Miami, Vocala highlighted the challenges faced by managed services providers, who operate on slim profit margins averaging just 10%.

[00:10:13] He stated that Kaseya aims to ease these pressures through its new Kaseya 365 user service, which has already seen high demand, similar to its earlier Kaseya 365 endpoint launch.

[00:10:24] Vocala pointed out that the SolarWinds hack was a wake-up call for lawmakers, sparking discussions on the economic impact of cyber crime, which he likened to a mafia tax affecting GDP.

[00:10:36] He believes that upcoming regulations will help MSPs provide essential cybersecurity tools to businesses lacking IT departments.

[00:10:44] Why do we care?

[00:10:45] So, here are my questions for you to ponder.

[00:10:48] How can you leverage downtime discussions for business outcomes?

[00:10:52] What should your vendor evaluation process be?

[00:10:55] And how often should you reevaluate it?

[00:10:58] And do you want Kaseya as your advocate for cybersecurity?

[00:11:01] Or should you potentially join an organization like the National Society of IT Service Providers?

[00:11:06] Are you ready to get your brand in front of the tech leaders shaping the future of managed services?

[00:11:15] Here at The Business of Tech, we offer flexible sponsorship opportunities to meet your needs, whether it's live show sponsorship, podcast advertising, event promotion, or custom webinars.

[00:11:26] From affordable exposure options to exclusive sponsorships, our offerings are designed to fit businesses and vendors of all sizes looking to make an impact.

[00:11:36] Prices start at just $500 per month, making our packages a fraction of typical event sponsorship costs.

[00:11:45] Be a part of the conversation that matters to IT service providers worldwide.

[00:11:51] Join us at MSP Radio and amplify your message where it counts.

[00:11:56] Visit MSP Radio dot com slash engage today to explore all the ways we can help you grow.

[00:12:04] Thanks for listening.

[00:12:05] Today is National Nacho Day and National Basketball Day.

[00:12:09] Now I'll be at IT Nation Connect for the rest of this week, so listeners will get three interviews over the next few days, dropping on Friday, Saturday, and Monday.

[00:12:17] And I'll be back again with the news on Tuesday.

[00:12:20] Got a comment or a thought on a story?

[00:12:21] Put it in the comments if you're on YouTube, or reach out on LinkedIn if you're listening to the podcast.

[00:12:26] If you like the show, give us a review.

[00:12:27] Make sure you're subscribed or followed in your favorite platform, and tell a column.

[00:12:31] I'll talk to you again with the news on Tuesday.

[00:12:36] The Business of Tech is written and produced by me, Dave Sobel, under ethics guidelines posted at businessof.tech.

[00:12:43] If you like the content, please make sure to hit that like button, follow or subscribe.

[00:12:48] It's free and easy and the best way to support the show and help us grow.

[00:12:53] You can also check out our Patreon, where you can join the Business of Tech community at patreon.com slash MSP radio or buy our Why Do We Care merch at businessof.tech.

[00:13:06] Finally, if you're interested in advertising on this show, visit MSP radio.com slash engage.

[00:13:13] Once again, thanks for listening to me.

[00:13:16] I'll talk to you again on our next episode of the Business of Tech.

[00:13:20] Business of Tech.

[00:13:22] Part of the MSP radio network.