Tech Hiring Stalls, Cloud Costs Rise, Layoffs Linked to Breaches, Pango Acquires Kaspersky Users

[00:00:02] [SPEAKER_00]: It's Monday, September 9th, 2024 and I'm Dave Sobel.

[00:00:05] [SPEAKER_00]: Four things to know today.

[00:00:07] [SPEAKER_00]: Tech Hiring Stalls as overall job growth also slows.

[00:00:12] [SPEAKER_00]: Over half of organizations report cloud price hikes.

[00:00:17] [SPEAKER_00]: A new study links layoff announcements to cybersecurity breaches.

[00:00:21] [SPEAKER_00]: The Pango Group to acquire Kaspersky's US antivirus customers.

[00:00:27] [SPEAKER_00]: This is the Business of Tech.

[00:00:30] [SPEAKER_00]: I like market reviews on Mondays, so that'll be my focus to start.

[00:00:34] [SPEAKER_00]: Yes, there's an Apple event today and if there are business story threads from that,

[00:00:38] [SPEAKER_00]: I'll pick them up tomorrow and Wednesday.

[00:00:41] [SPEAKER_00]: Of course, I need to start with the jobs report from Friday.

[00:00:45] [SPEAKER_00]: The August jobs report revealed mixed results with the US economy adding 142,000 jobs

[00:00:51] [SPEAKER_00]: below the expected 161,000 while the unemployment rate fell to 4.2%.

[00:00:58] [SPEAKER_00]: The jobs report also indicates that small business job growth stalled in August with

[00:01:04] [SPEAKER_00]: 40% of owners unable to fill positions and concerns about labor quality rising to 21%.

[00:01:10] [SPEAKER_00]: While 62% of owners attempted to hire, 56% reported few or no qualified applicants.

[00:01:18] [SPEAKER_00]: Job openings for skilled workers increased, particularly in construction, while a net

[00:01:23] [SPEAKER_00]: 13% planned to create new jobs in the next three months.

[00:01:27] [SPEAKER_00]: Compensation levels remain stable with a net 33% of owners raising pay in August.

[00:01:35] [SPEAKER_00]: Related recent CompT analysis indicates a cautious approach to tech hiring,

[00:01:39] [SPEAKER_00]: with overall tech employment remaining flat.

[00:01:42] [SPEAKER_00]: While the tech services sector added 3,400 jobs, the tech manufacturing sector

[00:01:48] [SPEAKER_00]: lost 2,500 positions.

[00:01:50] [SPEAKER_00]: The unemployment rate for tech occupations rose to 3.4% and active job postings

[00:01:56] [SPEAKER_00]: increased modestly to over 500,000, with strong demand for software developers,

[00:02:02] [SPEAKER_00]: data scientists and tech support specialists.

[00:02:06] [SPEAKER_00]: And a small bit of market news.

[00:02:08] [SPEAKER_00]: Palantir and Dell are joining the S&P 500 index due to their success in the generative

[00:02:13] [SPEAKER_00]: AI market while American Airlines and Etsy are being removed.

[00:02:18] [SPEAKER_00]: Dell's stock has risen 37% this year and Palantir's shares are up 83%,

[00:02:23] [SPEAKER_00]: reflecting their increased market capitalizations of over $70 billion each.

[00:02:29] [SPEAKER_00]: The Russell 2000 is down over 5% the last five days and up 3.8% for the year.

[00:02:36] [SPEAKER_00]: The S&P 600 is also down 5% over the last five days and up 1.8% for the year.

[00:02:42] [SPEAKER_00]: Both indices are proxies for smaller businesses.

[00:02:46] [SPEAKER_00]: Now why do we care?

[00:02:48] [SPEAKER_00]: The jobs report will influence the Federal Reserve's upcoming

[00:02:51] [SPEAKER_00]: interest rate decision with expectations of a potential cut.

[00:02:55] [SPEAKER_00]: Despite downward revisions in previous job figures, some economists believe the economy

[00:03:00] [SPEAKER_00]: is experiencing a soft landing rather than heading into recession,

[00:03:04] [SPEAKER_00]: indicating a gradual slowdown rather than a significant downturn.

[00:03:08] [SPEAKER_00]: The other reason to care is that the value of outsourced services is up.

[00:03:13] [SPEAKER_00]: With people hard to find, a combination of technology and people

[00:03:16] [SPEAKER_00]: delivered by an experienced company is of higher value than it was.

[00:03:20] [SPEAKER_00]: The market is rewarding companies with AI-centric strategies,

[00:03:25] [SPEAKER_00]: signaling that integrating AI into service offerings is essential.

[00:03:29] [SPEAKER_00]: IT providers need to position themselves as enablers of

[00:03:32] [SPEAKER_00]: AI-driven business transformation to remain competitive.

[00:03:37] [SPEAKER_00]: With as many breaches and security concerns as I report in this show,

[00:03:41] [SPEAKER_00]: it should be obvious that cybersecurity is not just about technology,

[00:03:45] [SPEAKER_00]: but also the human expertise needed to interpret and respond to complex threats.

[00:03:51] [SPEAKER_00]: Huntress is focused on elevating SMBs and MSPs around the world.

[00:03:56] [SPEAKER_00]: Huntress has a suite of fully managed cybersecurity solutions

[00:04:00] [SPEAKER_00]: powered by a 24x7 human-led SOC dedicated to continuous monitoring,

[00:04:06] [SPEAKER_00]: expert investigation, and rapid response.

[00:04:09] [SPEAKER_00]: And the proof is the execution.

[00:04:11] [SPEAKER_00]: Huntress is the number one rated EDR for SMBs on G2.

[00:04:17] [SPEAKER_00]: Want to know more about the platform?

[00:04:19] [SPEAKER_00]: Visit huntress.com slash MSP radio to learn more.

[00:04:25] [SPEAKER_00]: Administrators are increasingly questioning the value of cloud services,

[00:04:29] [SPEAKER_00]: with over a third of organizations feeling their transition to the cloud

[00:04:33] [SPEAKER_00]: has not met cost-effectiveness promises and more than half reporting increased bills.

[00:04:38] [SPEAKER_00]: A report from CIVIO highlights rising costs across major platforms like Microsoft Azure,

[00:04:44] [SPEAKER_00]: Google, and AWS, contradicting the expectation of stable or decreasing prices.

[00:04:51] [SPEAKER_00]: Analysts suggest that while cost pressures from rising electricity

[00:04:54] [SPEAKER_00]: and IT staff expenses contribute to these increases,

[00:04:58] [SPEAKER_00]: a retreat from cloud services is unlikely as CIOs continue to rely on cloud solutions

[00:05:03] [SPEAKER_00]: despite the diminished enthusiasm.

[00:05:06] [SPEAKER_00]: And why do we care?

[00:05:09] [SPEAKER_00]: Cloud cost management is the reason to care less than a move away from the cloud.

[00:05:14] [SPEAKER_00]: This creates a direct business opportunity for service providers

[00:05:17] [SPEAKER_00]: to step in with tools, strategies, and expertise in optimizing cloud costs.

[00:05:23] [SPEAKER_00]: Services like cloud cost auditing, resource allocation, and right-sizing workloads

[00:05:28] [SPEAKER_00]: will become essential as companies look for ways to control and reduce their cloud expenditures.

[00:05:34] [SPEAKER_00]: Assisting customers with managing cloud costs is going to be an ever-increasing need.

[00:05:39] [SPEAKER_00]: And that's before you even consider AI, which has considerable costs associated with it.

[00:05:47] [SPEAKER_00]: I spotted a new study, the impact of layoffs announcement on cybersecurity breaches.

[00:05:53] [SPEAKER_00]: Layoffs can increase the risk of cyber attacks from disgruntled employees seeking

[00:05:58] [SPEAKER_00]: revenge. Companies should promptly terminate access to systems for laid off employees,

[00:06:03] [SPEAKER_00]: communicate the reasons for access termination, and prepare for potential breaches by enhancing

[00:06:08] [SPEAKER_00]: security measures. Emphasizing corporate social responsibility can also mitigate negative

[00:06:14] [SPEAKER_00]: publicity and reduce the likelihood of attacks. Future research aims to explore

[00:06:19] [SPEAKER_00]: the correlation between layoff announcements and cybersecurity breaches.

[00:06:24] [SPEAKER_00]: Why do we care?

[00:06:25] [SPEAKER_00]: This is a distinct area to engage your clients so they're aware of both the pitfall

[00:06:30] [SPEAKER_00]: and the solution. Companies undergoing layoffs should be proactive in securing their systems,

[00:06:35] [SPEAKER_00]: which means engaging IT service providers to implement stricter protocols and preventative

[00:06:40] [SPEAKER_00]: measures. Providers can position themselves as strategic partners by offering cybersecurity

[00:06:45] [SPEAKER_00]: readiness audits and incident response planning, especially when workforce changes are anticipated.

[00:06:54] [SPEAKER_00]: The Pango Group is acquiring Kaspersky Labs U.S. antivirus customers due to that commerce

[00:07:01] [SPEAKER_00]: department ban on the Russian software, preventing existing users from losing updates.

[00:07:07] [SPEAKER_00]: The transition will affect approximately 1 million users who will switch to Pango's

[00:07:12] [SPEAKER_00]: UltraAV brand. Pango's president assured customers that no action is required on their

[00:07:17] [SPEAKER_00]: part as they will receive communications and support during the transition.

[00:07:21] [SPEAKER_00]: The move also alleviates U.S. government concerns regarding potential Russian government access

[00:07:26] [SPEAKER_00]: to customer data.

[00:07:29] [SPEAKER_00]: Why do we care?

[00:07:31] [SPEAKER_00]: With the transition of approximately 1 million customers to Pango's UltraAV,

[00:07:35] [SPEAKER_00]: there's an opportunity for IT service providers to offer support during the change.

[00:07:39] [SPEAKER_00]: Even though Pango has promised a smooth transition, some users may still require

[00:07:44] [SPEAKER_00]: help in managing the switch, particularly in business environments. Providers offering

[00:07:49] [SPEAKER_00]: managed security services can step in to ensure that corporate clients experience

[00:07:53] [SPEAKER_00]: minimal disruption and that their cybersecurity policies remain intact,

[00:07:58] [SPEAKER_00]: or move them to another provider. Regardless, there's a new wrinkle to the opportunity here.

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[00:08:40] [SPEAKER_00]: slash radio. That's B-L-U-M-I-R-A dot com slash radio.

[00:08:48] [SPEAKER_00]: Thanks for listening. Today is International Box Wine Day. Yep, there's one for that too.

[00:08:56] [SPEAKER_00]: I'll be speaking at Pulseway Nexus September 11th and 12th, so make sure to sign up and

[00:09:01] [SPEAKER_00]: register to join me. Link in the show notes and description. And if you have a question

[00:09:06] [SPEAKER_00]: you want answered, we take listener questions, send them ideally as a voice memo or video to

[00:09:12] [SPEAKER_00]: question at MSBradio dot com. I answer listener questions live each week on our Wednesday

[00:09:16] [SPEAKER_00]: live show on YouTube and LinkedIn, this week at 3 p.m. Eastern. And if you got a comment

[00:09:21] [SPEAKER_00]: or a thought on a story put it in the comments if you're on YouTube or reach out on LinkedIn

[00:09:25] [SPEAKER_00]: if you're listening to the podcast. I will talk to you again tomorrow.

[00:09:31] [SPEAKER_00]: The Business of Tech is written and produced by me, Dave Sobel. Under ethics guidelines,

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[00:10:08] [SPEAKER_00]: Once again, thanks for listening to me. I'll talk to you again on our next episode of the Business of Tech.