Wed Mar-6-2024: Taming Wage Inflation, Low Adoption of MFA in SMB, Apple's Vision Pro Niche Market

[00:00:00] It's Wednesday March 6, 2024, and I'm Dave Sult, three things to know today.

[00:00:08] Taming wage inflation insights from the 2024 IT solution provider compensation report.

[00:00:15] SaaS Alerts 2024 SaaS report says only 35% of SMBs are embracing multi-factor authentication and Apple's Vision Pro niche market status

[00:00:26] is expected to lower priced model in 2027 estimates suggest.

[00:00:32] This is the business attack.

[00:00:37] This episode sponsored by Skykick, new sponsor for MSB Radio.

[00:00:41] Skykick has been helping over 30,000 MSBs for the past 10 years be more successful in the cloud,

[00:00:47] migrating, protecting, securing, and managing their Microsoft 365 customers.

[00:00:52] A highlight in their offerings is their Microsoft 365 Data Protection solution,

[00:00:57] Cloud Backup. They've recently enhanced it with a new feature called Smart Insights.

[00:01:02] This feature delivers visual insights and powering partners to engage

[00:01:05] more efficiently with customers on Microsoft 365 data protection. An MSP radio listeners get a special

[00:01:12] offer. Get a free 2 M365 email migration for a customer when you bundle it with backup. Visit

[00:01:20] skykick.com slash MSP radio to learn details. On the live show today, I noted it was a day of data reports.

[00:01:30] I covered the Casaia 2024 MSB benchmark on that show and podcast listeners you'll get that

[00:01:36] on Saturday.

[00:01:37] There are two more to talk about today.

[00:01:40] First, let's look at the Service Leadership 2024 annual IT Solution Provider Compensation

[00:01:46] Report.

[00:01:47] Highlights.

[00:01:48] Wage inflation peaked in 2022 for technology service providers worldwide and has shown

[00:01:54] significant improvement since, with roughly one-third as many employees projected to receive

[00:01:59] top-level increases in 2024 as 2022. In 2023, top-performing TSPs provided lower compensation increases than

[00:02:09] the bottom quartile TSPs, indicating a difference in compensation strategies. Remote work remains

[00:02:16] relatively low in the TSP industry, with only 8.7% of employees working 100% remotely while 42.8% work exclusively in the office.

[00:02:27] Most employees, 73% spend at least three days or more working in the office.

[00:02:33] Best in-class managed service providers and value-added resellers were less likely to offer

[00:02:38] unlimited paid-time loss while the bottom quartile MSPs and VARS were likely to provide

[00:02:44] this benefit.

[00:02:46] Outside the US, limited PTO remains virtually non-existent.

[00:02:52] And a service desk level 3 costs as much as 59.6% here than a level 1.

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

[00:03:02] nuanced compensation strategies that reward performance and contribution to business calls

[00:03:07] for the win.

[00:03:08] This approach can help manage wage inflation on set ofizing high performance and aligning

[00:03:13] employee compensation with business outcomes.

[00:03:16] I get it, compensation isn't easy, but skill here is rewarded.

[00:03:22] I discuss remote work as a strategic advantage

[00:03:25] like a broken record on this show.

[00:03:27] Seems like it's still an advantage.

[00:03:30] Providers may need to reassess the remote work policies

[00:03:33] to align with lander work for strands

[00:03:36] and employee expectations.

[00:03:38] Offering flexible work arrangements can be

[00:03:41] a competitive advantage in attracting and retaining talent.

[00:03:47] The other big report comes from SaaS Alerts, which released its fourth annual SaaS Application

[00:03:52] Security Insights Report.

[00:03:54] The report covering the SaaS Application Security Records of more than 18,000 SMBs reveals

[00:04:00] continued low adoption of MSA. Of those records, only 35% enabled multi-factor authentication,

[00:04:08] a slight 3% increase for the findings in last year's report.

[00:04:14] Microsoft 365 and Google workspace with the datasets most widely used SaaS applications,

[00:04:19] so they naturally were most active sources of critical alerts last year. However, only about 1% of alerts from M365 and Google required immediate attention.

[00:04:31] Meanwhile, Slack was more problematic with 12% of related alerts identified as critical.

[00:04:38] That was an almost 9-point jump from Slack's critical alerts ratio of 3.77% last year.

[00:04:46] The report also revealed a 75% increase in guest user accounts.

[00:04:51] Guest user accounts are created on the fly when sharing documents externally, often

[00:04:56] left damaged and unmonitored.

[00:04:59] SaaS Alerts also announced a partnership with fifth-wall solutions to offer its new Bell-Tex

[00:05:05] Cyber-in-Shored solution, DMSPs and their customers.

[00:05:10] Why do we care?

[00:05:12] Businesses and MSPs must intensify their efforts to implement MFA across all user accounts,

[00:05:18] particularly for critical SaaS applications like Microsoft 365 and Google Workspace. Education and awareness

[00:05:25] campaigns can help overcome resistance to adoption, emphasizing its role in

[00:05:29] protecting against data breaches and cyber threats. Insurance won't cover you if

[00:05:34] you don't have MFA. Businesses should implement policies and procedures to

[00:05:39] regularly review and manage guest user accounts including disabling the longer

[00:05:43] needed accounts. There's automated tools that can help track guest accronp creation and activity, ensuring these

[00:05:49] accounts do not become a security liability.

[00:05:52] This should be standard practice.

[00:05:54] I'm not generally encouraged by this news.

[00:06:00] We have numbers now on the Vision Pro rather than speculation. According to Apple analyst Ming-Chi Kuo, up to 30% of Apple Vision Pro headset returns

[00:06:10] are due to users struggling to set it up.

[00:06:13] While only 1% of owners return their headsets, the lack of intuitive operation for Apple's

[00:06:19] spatial computing headset seems to be a challenge.

[00:06:22] The Vision Pro's eye-tracking technology and less obvious features may be confusing users,

[00:06:28] leading to dissatisfaction the $3,500 device.

[00:06:32] While the headsets demand in the US has slowed, while it estimates that US shipments

[00:06:36] will reach 200,000 to a quarter million units this year, Apple is expected to remain a niche market until a lower priced mass-produced

[00:06:46] model is released, possibly in 2027. Apple is reportedly expanding production capacity for

[00:06:53] the device, following a successful U.S. launch. Despite that slowdown, the company plans

[00:06:58] to produce more units than originally estimated due to better than expected market performance.

[00:07:05] Beds' popularity among prosumers and developers has increased production for several suppliers.

[00:07:11] While a global release is not immediate, Apple may launch in more countries before

[00:07:17] WWDC this year. Vision Pro owners are recording a mysterious

[00:07:22] crack appearing in the front glass of their headsets because of the cracks is unknown, and they appear in the same area above the nose bridge.

[00:07:30] Speculation suggests it may be a heating issue due to charging or a manufacturing problem.

[00:07:36] The crack is not obstructing any cameras, pairing the device is expensive.

[00:07:42] The issue seems limited to Reddit reports and Apple has not responded to inquiries about the problem.

[00:07:48] The US Central Intelligence Agency, the CIA,

[00:07:52] is hiring an extended reality specialist

[00:07:55] to create methods for extending and immersing individuals

[00:07:57] in their environments.

[00:07:59] The role involves showcasing technical expertise,

[00:08:02] program management skills, and staying up to date

[00:08:04] with AR

[00:08:05] and VR technologies. The CIA seeks the leverage XR for data visualization, collaboration,

[00:08:12] and training.

[00:08:13] Moon Hub, a virtual reality training platform, has raised $1.4 million in funding to expand

[00:08:20] its immersive learning experiences. The platform recreates real-world scenarios to provide

[00:08:25] hands-on training in sectors such as facilities management, security, and social care.

[00:08:30] Moon Hub's forces accelerate training completion, requiring less time than traditional methods,

[00:08:36] and enhance retention. Global enterprises like Just Eat, BNP, Paribas, and Amazon

[00:08:43] are partnering with Moon Lab to enhance workforce

[00:08:45] training.

[00:08:46] The funding will be used for product development and market expansion.

[00:08:51] And to give you a sense of the possibilities, according to a part of the March german, Apple

[00:08:56] is exploring the idea of AI-powered smart glasses and AirPods with cameras.

[00:09:02] The smart glasses would serve as a cheaper alternative to AR face computers, while the camera

[00:09:06] equipped AirPods would assist users with their routines.

[00:09:11] Apple is also considering the development of a smart ring.

[00:09:14] The company has been focusing more on AR glasses following the success of screenless

[00:09:18] smart glasses by Met.

[00:09:22] Why do we care?

[00:09:23] This is both a small market and one growing faster than initially thought.

[00:09:27] Apple should easily hit its goals of half a million units, and again, remember,

[00:09:32] that's nearly $2 billion marketplace. A government's investment in XR technologies

[00:09:38] evaluates their potential beyond entertainment, highlighting opportunities for businesses to

[00:09:42] explore applications in the training, simulation, and data analysis space. This trend may open up new markets for

[00:09:49] solution providers, particularly in sectors with complex data environments or training needs.

[00:09:54] Companies like MoonHub will be part of that ecosystem. I've pitched the idea of cameras

[00:10:00] on AirPods myself on this show. Rumour to be sure, one more data point indicating something

[00:10:06] in the XR space.

[00:10:08] Thanks for listening. It's National Frozen's Food Day and National Oreo Day. It's also

[00:10:16] Day of the Dude, apparently. The Dude abides.

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