TeamViewer's $720M Acquisition, Microsoft Shareholder Pushback, SEC Cyber Rules, and Windows 11 Warnings

[00:00:02] It's Wednesday, December 11th, 2024, and I'm Dave Sobel. Four things to know today. TeamViewers requires 1E for $720 million to drive digital workplace and endpoint management evolution. Microsoft's annual meeting highlights shareholder pushback on AI oversight and cryptocurrency ventures. The SEC's cyber disclosure rules are falling short as companies struggle with compliance and clarity. And Microsoft warns against unsupported Windows 11 installs,

[00:00:31] highlighting compatibility risks. This is the Business of Tech. TeamViewer, a global software company specializing in remote connectivity and digital collaboration, has announced its strategic expansion into digital workplace management by acquiring 1E, a leader in digital employee experience. The deal, valued at approximately $720 million, is expected to close in early 2025, pending regulatory approval. TeamViewer installed on

[00:01:01] over 2.5 billion devices worldwide, reported revenues of €164 million in the second quarter of 2024 and serves nearly 4,500 customers across various industries. This acquisition aims to enhance TeamViewer's capabilities in intelligent endpoint management and proactive IT support, ultimately improving employee experience and operational efficiency. According to Mark Banfield, CEO of 1E, integrating their unified experience with

[00:01:31] management solutions with TeamViewer's management solutions with TeamViewer's remote access technology will accelerate the mission to create innovative IT solutions for the future of work.

[00:01:41] Why do we care? The TeamViewer 1E deal is a strategic bet on the convergence of remote support and endpoint management. Savvy MSP historians might know Mark Banfield as an Autotask and Datto veteran, and remember TeamViewer is owned by GFI when I worked there.

[00:01:59] So, combining a remote control tool with a workplace management tool makes a lot of sense, and probably made sense to these companies based on their own experiences.

[00:02:09] Based on scale alone, one should not dismiss TeamViewer in their consideration of IT management platforms. Thus, that's why we care about this combination.

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[00:03:19] Microsoft shareholders rejected six proposals during the company's annual meeting, including three that focused on the risks of artificial intelligence to its business.

[00:03:29] The board opposed these proposals, citing existing safeguards and programs.

[00:03:33] Notably, a proposal from Arjuna Capital sought a report on the risks of AI-related misinformation, while another called for an assessment of Microsoft's technology in oil and gas development.

[00:03:45] In contrast, a proposal in 2021 led to a significant report on Microsoft's sexual harassment policies after receiving shareholder approval.

[00:03:55] And Microsoft shareholders rejected a proposal to consider investing in Bitcoin during the same meeting.

[00:04:01] The National Center for Public Policy Research suggested that the tech giant add Bitcoin to its balance sheet, highlighting its potential as an excellent inflation hedge and a way to diversify corporate assets.

[00:04:13] However, the board recommended a vote against the proposal, setting a preference for less volatile investments.

[00:04:19] Despite MicroStrategy co-founder Michael Saylor's virtual pitch advocating for the benefits of Bitcoin, including a projected increase in Microsoft's market value by nearly $5 trillion over the next decade, investors remained unconvinced.

[00:04:33] Proxy advisory firms like Glass Lewis supported the decision, pointing to a lack of evidence that cryptocurrency investments would enhance returns.

[00:04:42] Why do we care?

[00:04:43] The message from shareholders is clear.

[00:04:45] Microsoft, focus on your current strategy, and shareholders do not consider the AI risks outlined, such as the one from the National Legal and Policy Center, for a report on, quote,

[00:04:55] the real or potential unethical or improper usage of external data in the development and training of its artificial intelligence offerings, end quote.

[00:05:03] Microsoft's stance on AI-related risks indicate that governance of AI tools will largely fall on enterprises and service providers using the technology.

[00:05:13] Organizations should proactively assess the risks of adopting Microsoft's AI solutions, including compliance, bias, and misinformation.

[00:05:21] It's also a statement from shareholders that they don't see Microsoft needing to invest in other investment properties.

[00:05:28] Shareholders don't need companies to diversify for them.

[00:05:32] A new report from BreachRx reveals that most publicly traded companies are not providing adequate details about cyber incidents impacting their business,

[00:05:44] despite new disclosure rules from the Security and Exchange Commission.

[00:05:47] One year after the implementation of these rules, only about 17% of public filings disclosed specific details about the material impact of such incidents.

[00:05:57] Additionally, nearly half of the filings failed to provide information on how companies responded to ongoing issues, instead relying on vague language.

[00:06:06] The SEC aimed to enhance transparency and detail in disclosures, but the findings suggest that many companies are still not meeting these expectations.

[00:06:15] The deadline to comply with the requirement to report material cyber incidents within four business days was December 18th of last year.

[00:06:23] Yet, clarity on what constitutes material remains an issue, leading to concerns about potential legal repercussions for sharing too much information.

[00:06:33] Why do we care?

[00:06:34] The SEC's rules were designed to increase transparency, but vague definitions of material impact and concerns over legal liability have created a significant compliance gap.

[00:06:45] And as we transmission administrations, it'll be notable to see if this is clarified or loosened.

[00:06:52] Companies still don't want to disclose their security issues, and I don't see that improving.

[00:06:56] Many organizations view cybersecurity incidents as sensitive business intelligence.

[00:07:01] Disclosing too much can expose vulnerabilities to competitors and attackers, making full compliance with transparency rules unlikely.

[00:07:12] Microsoft has issued a warning regarding installing Windows 11 on devices that do not meet the minimum system requirements.

[00:07:19] The company emphasizes that doing so is not recommended due to potential compatibility issues, which may lead to malfunctions and a lack of support for security updates.

[00:07:28] This comes after users have long since found workarounds to install Windows 11 on older hardware.

[00:07:33] Users should be aware that if they proceed with the installation, they will see a watermark on their desktop indicating their device's ineligibility.

[00:07:40] They could face challenges in reverting back to Windows 10 after 10 days.

[00:07:45] Users can utilize the PC Health Check app to check if their device is eligible, which provides insights into the system's compliance with Windows 11 requirements.

[00:07:55] SonicWall and CrowdStrike have partnered to enhance cybersecurity for small and medium-sized businesses by launching a new managed detection and response service.

[00:08:03] This offering combines SonicWall's managed security services with the advanced endpoint protection capabilities of the CrowdStrike Falcon platform.

[00:08:11] Given the increasing frequency of cyber threats targeting small businesses, this collaboration aims to provide comprehensive security solutions tailored to the needs of those-sized businesses.

[00:08:21] Why do we care?

[00:08:24] Tactical updates for you

[00:08:25] Not surprising to see Microsoft tighten up as it relates to upgrades.

[00:08:29] That upgrade cycle next year is important to them, too.

[00:08:32] Windows upgrade cycles are significant events for MSPs and IT departments, creating opportunities for device refreshes, extended maintenance contracts, and consulting.

[00:08:41] Microsoft's emphasis on minimum requirements reinforces the need for compliant hardware, potentially accelerating upgrade timelines for businesses.

[00:08:56] Microsoft 365

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[00:09:17] This powerful platform enables automatic reporting and remediation, ensuring optimal performance and security.

[00:09:25] The best part?

[00:09:26] You achieve this high level of service without the need for a large workforce, allowing you to focus on growing your business through efficiency.

[00:09:34] Want to know more?

[00:09:35] Visit CoreView.com slash MSP and find out more.

[00:09:42] Thanks for listening.

[00:09:43] Today is International Mountain Day.

[00:09:45] It's also National App Day.

[00:09:47] I feel like we're hitting the bottom of the barrel as we reach the end of the year.

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[00:10:00] Next week, Wednesday, 3 p.m. Eastern on the YouTube and LinkedIn, the last of the year.

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