Host Dave Sobel interviews Jeff Totten, the founder and CEO of Evergreen, a company that takes a unique long-term investment approach in the managed services provider (MSP) space. Jeff shares insights into Evergreen's philosophy, which is heavily inspired by Berkshire Hathaway's model of acquiring businesses with the intent to build and hold them for the long haul. This strategy emphasizes the importance of investing in people and maintaining the culture of the companies they acquire, ensuring that founders can feel proud of their legacy even after selling their businesses.

Jeff discusses the dual challenge of people management that Evergreen faces: nurturing their internal team while also investing in the leadership of the acquired companies. He highlights the role of their chief people officer in sourcing and retaining top talent, as well as the importance of preserving the local culture of the businesses they partner with. By injecting additional talent into these organizations, Evergreen aims to enhance the existing culture rather than disrupt it, fostering an environment where employees can thrive and grow.

The conversation also delves into Evergreen's decision-making framework, which prioritizes focusing on key areas such as acquisitions and talent placement. Jeff explains how they utilize first principles thinking and consider the long-term implications of their decisions, ensuring that they align with the company's values and mission. He emphasizes the importance of measuring success through customer and employee satisfaction, as well as organic growth, which is vital for the sustainability of their business model.

As the episode wraps up, Jeff reflects on Evergreen's recent international expansions and the lessons learned from entering new markets. He notes the differences in maturity levels among MSPs in various regions and the importance of building local trust. Looking ahead to 2025, Jeff identifies new customer acquisition and the integration of AI and robotic process automation (RPA) as key focus areas for Evergreen, underscoring the potential for these technologies to enhance service delivery and operational efficiency in the MSP sector.

 

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Exploring Evergreen's Long-Term Investment Strategy, People, & Global Expansion w/ Jeff Totten

host Dave Sobel sits down with Kelvin Tegelaar, the CTO of Lime and founder of CyberDrain, to discuss the evolving landscape of SaaS management and the innovative approach taken by CyberDrain. Tegelaar introduces the Cyber Drain Improved Partner Portal (CIPP), an open-source, multi-tenant management solution specifically designed for Microsoft 365. He highlights the need for affordable management tools in the MSP space, which often suffer from high pricing models. By offering a free and open-source tool with optional support, Teglar aims to democratize access to essential management resources for MSPs.

The conversation delves into the dynamics of community involvement in open-source projects. Tegelaar shares insights on how CyberDrain has fostered a vibrant community of contributors, many of whom are system administrators rather than traditional developers. This community-driven approach not only enhances the product but also creates a sense of camaraderie among users. With around 7,000 active MSPs utilizing SIP, Tegelaar notes that a significant portion is opting for the paid support model, while others engage in self-hosting and community support.

Tegelaar also discusses the balance between commercial interests and community contributions, emphasizing the importance of maintaining a clear separation between CyberDrain and his MSP, Lime. This separation helps avoid conflicts of interest and ensures that the focus remains on delivering value to all users. The episode highlights the collaborative relationship between CyberDrain and Microsoft, where Tegelaar's insights and feedback from the MSP community are used to enhance Microsoft's Lighthouse product, showcasing a unique partnership that benefits both parties.

As the episode wraps up, Tegelaar reflects on the future of AI in the MSP space, particularly the potential of large language models (LLMs) to create meaningful applications that go beyond simple tasks. He emphasizes the need for practical implementations that genuinely assist engineers and service providers. 

 

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Open Source MSP Solutions, Community Growth, & AI Integration in SaaS Management w/ Kelvin Tegelaar

The episode begins with a recap of the previous year's forecasts, assessing their accuracy and relevance in the rapidly evolving tech landscape. Host Dave Sobel highlights the increasing reliance of businesses, particularly in healthcare and finance, on Managed Service Providers (MSPs) to navigate the complex compliance requirements stemming from a surge in state-level data privacy laws across the U.S.

 

Sobel discusses the role of artificial intelligence (AI) and machine learning in transforming IT operations, noting the advancements in self-healing systems and predictive maintenance. He acknowledges the growing interest in AI-driven solutions, particularly in the context of operational efficiency and proactive issue resolution. However, he also points out areas where his predictions fell short, such as the anticipated rise of deepfake detection services and the appointment of AI systems as board members in major corporations.

 

As he transitions to his predictions for 2025, Sobel emphasizes the potential of generative AI to revolutionize data reporting and accessibility for businesses. He envisions a future where AI can dynamically analyze and summarize data, making insights readily available to users without the need for specialized skills. Additionally, he predicts that autonomous IT systems will become more mature and accessible to small and medium-sized businesses (SMBs), allowing MSPs to offer enhanced managed services that focus on strategic outcomes.

 

The episode concludes with a series of bold predictions for the coming year, including the mainstream adoption of decentralized MSP models, the emergence of AI co-governance frameworks, and the integration of fraud prevention services into standard cybersecurity offerings. Sobel encourages listeners to consider these strategic ideas as they plan for 2025, emphasizing the importance of adapting to the evolving technological landscape.

 

 

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2024 Predictions Review & 2025 Outlook: AI, Compliance, Decentralization, and MSP Evolution

The episode opens with a focus on Anthropic's new tool, Clio, which is designed to enhance AI observability by identifying threats and unknown harms associated with its AI chatbot, Claude. Clio has already proven its utility by detecting a coordinated spam network attempting to manipulate search engine optimization. Anthropic aims to share Clio's methodologies with other AI labs to promote safer AI practices, emphasizing the importance of governance frameworks for service providers offering AI solutions.

The episode also delves into the ongoing challenges of diversity within IT leadership. Host Dave Sobel presents data from a recent survey that reveals little change in the demographic makeup of IT leadership, with a significant majority being white and male. Despite some tech workers believing their workplaces are making strides in diversity, equity, and inclusion, the statistics indicate that progress has been slow. The discussion highlights the need for continued monitoring of these demographics to assess the effectiveness of DEI initiatives, especially as budget cuts and leadership support wane.

In a segment titled "Experts Warn," the podcast addresses the misuse of AI technologies in disinformation campaigns, specifically referencing Eleven Labs' AI voice generation technology being used in a Russian influence operation. This incident underscores the potential risks associated with generative AI, as well as the growing concerns among business leaders regarding AI fatigue and burnout. Sobel notes that while many organizations are exploring AI solutions, they often lack clear guidelines for implementation, which can lead to challenges in managing employee use of these tools.

Finally, the episode concludes with a significant market shift in the remote monitoring and management (RMM) sector, where Kaseya has overtaken ConnectWise as the leading provider. Sobel discusses the implications of this change, including Kaseya's aggressive pricing strategies and the potential risks associated with their approach. He encourages service providers to evaluate vendors based on sustainable innovation and customer satisfaction rather than just market share. The episode wraps up with a call for organizations to establish comprehensive strategies for AI implementation, ensuring that they remain competitive while effectively managing the associated risks.

 

Four things to know today

00:00 AI Observability Gets Real: Anthropic’s Clio Detects Threats and Offers a Blueprint for Safer AI [https://www.businessof.tech/2024/12/17/ai-observability-gets-real-anthropics-clio-detects-threats-and-offers-a-blueprint-for-safer-ai/]

03:09 Same Story, Different Quarter: IT Leadership Still Struggles With Diversity [https://www.businessof.tech/2024/12/17/same-story-different-quarter-it-leadership-still-struggles-with-diversity/]

05:25 AI Voices, Burnout, and Big Bets: Why Guardrails and Guidance Are Your Best AI Tools [https://www.businessof.tech/2024/12/17/ai-voices-burnout-and-big-bets-why-guardrails-and-guidance-are-your-best-ai-tools/]

10:00 Big Shift in RMM: Kaseya Tops ConnectWise, But Can They Hold the Crown? [https://www.businessof.tech/2024/12/17/big-shift-in-rmm-kaseya-tops-connectwise-but-can-they-hold-the-crown/]

 

 

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AI Safety Tools, Diversity in IT, Voice Tech Risks, and RMM Market Shifts

There is a significant surge in AI leadership and investment within organizations, highlighting a 70% increase in the number of chief AI officers from 2023 to 2024. This trend indicates a growing commitment to AI technology in the corporate landscape, with many companies opting to fill these roles with talent from major tech firms. The report emphasizes that as enterprises ramp up their AI initiatives, the chief AI officer role is becoming increasingly vital, particularly in publicly traded companies and private enterprises alike.

Host Dave Sobel also shares insights from a report by Logic Monitor, revealing that 81% of enterprises plan to boost their investments in AI-powered IT operations in the coming year. The need for improved performance and resilience drives this shift, with many organizations already utilizing AI for tasks like anomaly detection and proactive IT operations. However, challenges remain, including difficulties in integrating AI with existing infrastructures and concerns about data privacy, which are critical considerations for businesses moving forward.

The episode further explores the evolving landscape of AI chatbots, with updates from OpenAI, Anthropic, and Google. OpenAI has launched real-time video capabilities for ChatGPT, enhancing user interaction, while Anthropic's new CLAWD 3.5 Haiku model boasts impressive performance metrics. Google has introduced AgentSpace, a service designed to help enterprises create and deploy AI agents. Sobel notes that while these advancements are incremental rather than groundbreaking, they hold significant potential for productivity, particularly in data-heavy industries.

Finally, the episode delves into Broadcom's successful integration of VMware, which has resulted in substantial profit increases and a significant drop in costs. Despite the positive financial outlook, concerns arise as Ingram Micro announces it will cease business relationships with Broadcom and VMware in many regions, citing challenges in delivering optimal technology outcomes. Sobel reflects on the implications of these developments for the channel strategy and the broader tech landscape, suggesting that the financial success of Broadcom may not be adversely affected by these changes.

 

Three things to know today

00:00 AI Leadership and Investments Surge—Will It Stick or Fold Back Into the C-Suite?   [https://www.businessof.tech/2024/12/16/ai-leadership-and-investments-surge-will-it-stick-or-fold-back-into-the-c-suite/]

05:12 AI Chatbots Get Smarter (Again): OpenAI, Anthropic, and Google Tweak for Productivity [https://www.businessof.tech/2024/12/16/ai-chatbots-get-smarter-again-openai-anthropic-and-google-tweak-for-productivity/]

08:03 Broadcom’s VMware Overhaul Delivers Big Profits—But Not Everyone’s Cheering [https://www.businessof.tech/2024/12/16/broadcoms-vmware-overhaul-delivers-big-profits-but-not-everyones-cheering/]

 

 

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AI Leadership Growth, Chatbot Innovations, and Broadcom's VMware Success Amid Channel Challenges

Host Dave Sobel welcomes back Gerwai Todd, CEO of both PIA and TimeZest, to discuss the unique challenges and strategies involved in leading two organizations simultaneously. Gerwai emphasizes the importance of having a strong team and effective communication, highlighting the implementation of the Entrepreneurial Operating System (EOS) in both businesses. He shares how the time zone difference with his Australian team allows for a more balanced workload, enabling him to manage his responsibilities across both companies effectively.

The conversation shifts to the practical adoption of automation and artificial intelligence (AI) in the IT industry, particularly in the context of service management. Gerwai explains that AI is simply another tool in the software toolbox, which can help solve new business challenges when applied correctly. He discusses the importance of training AI models to understand specific industry use cases, such as interpreting IT tickets, and the need to mitigate issues like AI hallucinations to ensure commercial viability.

Gerwai elaborates on the journey of integrating AI into service desk operations, noting that while the technology has advanced, it still requires human oversight. He describes how the goal is to enhance the efficiency of ticket resolution by understanding the intent behind service requests. By using a collaborative approach, technicians can guide the AI in making accurate assessments, which in turn helps improve the model's performance over time.

Finally, the discussion touches on the importance of data organization and governance for solution providers. Gerwai emphasizes that having a structured approach to categorizing tickets—such as using type, subtype, and item classifications—can significantly enhance the effectiveness of AI implementations. He concludes by encouraging organizations to standardize their processes to better prepare for the integration of advanced technologies, ultimately leading to improved service delivery and operational efficiency.

 

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Exploring AI, Automation, and Team Dynamics in Cybersecurity for SMBs and MSPs with Gerwai Todd

Host Dave Sobel welcomes Seth Robinson, Vice President of Industry Research at CompTIA, and Rich Freeman, a seasoned journalist and analyst specializing in the SMB channel. The discussion centers around CompTIA's recently released outlook for 2025, which highlights the ongoing optimism within the technology sector, particularly among IT professionals and channel firms. Despite this optimism, the report reveals a concerning trend: fewer than half of businesses express confidence in their basic IT services, a decline from a decade ago. This lack of confidence may hinder the adoption of advanced technologies, prompting a deeper exploration of the factors influencing these sentiments.

Seth elaborates on the dual nature of the current technology landscape, where businesses are eager to invest in technology for strategic purposes but are simultaneously seeking measurable returns on those investments. The conversation touches on the challenges faced by IT professionals as decision-makers demand more certainty regarding the effectiveness of their technology expenditures. Rich adds to this discussion by highlighting the broader economic uncertainties, including geopolitical tensions and fluctuating interest rates, which contribute to a cautious approach to IT spending.

The episode also delves into the potential impact of increased regulation on managed service providers (MSPs). Both Seth and Rich discuss the sentiment among MSPs regarding the need for stricter regulations to elevate industry standards and eliminate subpar competitors. While some MSPs may view regulation as a necessary headache, they recognize that it could ultimately benefit the industry by fostering trust and accountability among service providers.

Finally, the conversation shifts to the rise of bespoke platforms and the growing trend of international business among channel firms. Seth notes that many companies are increasingly looking to operate globally, driven by the demand for data services and cybersecurity solutions. This trend presents both opportunities and challenges, particularly in navigating varying regulations across different regions. The episode concludes with a reflection on the importance of data management and infrastructure as businesses seek to leverage AI and other technologies effectively, emphasizing the need for MSPs to build the necessary skills to meet these evolving demands.

 

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2025 Tech Outlook: AI Trends, Bespoke Platforms, and MSP Confidence w/ Seth Robinson & Rich Freeman

Dave Sobel engages in a thought-provoking conversation with Tim Golden, CEO of Compliance Scorecard. They discuss the evolving landscape of compliance, particularly in the context of Managed Service Providers (MSPs) as they look toward 2025. Tim emphasizes that compliance is not a fleeting trend but a critical aspect of business operations, drawing parallels to the historical implementation of seatbelt laws. He highlights the increasing importance of regulations such as the FTC safeguards and CMMC, which are becoming essential for small businesses and the MSPs that support them.

The discussion delves into the challenges faced by software manufacturers regarding compliance and security measures. Tim points out the tension between the need for robust security features, like multi-factor authentication, and the reluctance of some software vendors to implement these measures due to the costs involved. Dave pushes back on this notion, arguing that the industry has a choice in how it approaches compliance and security, and that proactive advocacy for regulations could lead to better outcomes for all stakeholders involved.

As the conversation progresses, Tim shares insights on the self-regulating nature of certain industries and the potential for organizations like CompTIA to set standards for MSPs. He believes that the community of MSPs must take the initiative to establish best practices and compliance measures, akin to the licensing requirements in other professions. This self-regulation could help elevate the standards within the industry and ensure that MSPs are equipped to handle the compliance needs of their clients effectively.

Finally, Tim reveals that Compliance Scorecard is launching a professional services division aimed at supporting MSPs in navigating compliance challenges. This new initiative will provide additional resources and expertise to help MSPs deliver compliance as a service to their clients. Tim expresses optimism about the future, emphasizing the need for MSPs to engage in meaningful conversations about business outcomes and compliance, ultimately positioning compliance as a framework that supports business success rather than a burden.

 

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Navigating Compliance: Trends, Challenges, and the Future for MSPs in 2025 w/ Tim Golden

Google launched Gemini 2.0, their next-generation AI model, which includes an experimental version called Gemini 2.0 Flash, boasts impressive capabilities such as generating text, images, and speech while processing various inputs. With a focus on multimodal functionality, Gemini 2.0 aims to support agentic AI systems that can think ahead and act on behalf of users. Host Dave Sobel highlights key features like the multi-modal live API and Project Mariner, an AI-powered Chrome extension, while also noting the limitations of these tools in their current testing phases.

The episode shifts to cybersecurity, addressing a critical vulnerability discovered in Microsoft's Azure multi-factor authentication system. Researchers revealed that this flaw allowed attackers to bypass security measures, potentially exposing over 400 million Microsoft 365 accounts. Although Microsoft has since implemented fixes, the incident underscores the need for organizations to adopt proactive security measures. Additionally, Sobel discusses alarming findings from Wallarm regarding the rapid discovery of newly deployed APIs by attackers, emphasizing the urgent need for enhanced security practices in the face of evolving threats.

Sobel also explores the changing landscape of managed services, referencing a Forrester article that discusses the transformative impact of AI on the industry. As organizations seek to deliver high-quality services while controlling costs, AI is enabling a shift towards outcome-based pricing models. This evolution allows businesses to improve efficiency and customer experiences, with some AI platforms reportedly handling up to 70% of customer interactions. Sobel encourages IT providers to adapt their offerings to meet the growing demand for higher-value services that align with clients' business goals.

Finally, the episode raises thought-provoking questions about the future of managed services and the role of AI in shaping these changes. Sobel challenges listeners to consider how they can pivot from traditional service offerings to advisory roles that help clients navigate technology investments. He also prompts reflection on the trustworthiness of AI models and their capabilities in handling various tasks. As the episode concludes, Sobel teases upcoming discussions on compliance and practical AI applications, inviting listeners to engage with the evolving narrative of technology in business.

 

Three things to know today

00:00 Gemini 2.0 Lands: Google's Bold AI Play Mixes Speed, Smarts, and Early Access Perks [https://www.businessof.tech/2024/12/12/gemini-2-0-lands-googles-bold-ai-play-mixes-speed-smarts-and-early-access-perks/]

04:51 Microsoft Azure MFA Breach and API Risks Underscore Need for Proactive Cybersecurity Measures [https://www.businessof.tech/2024/12/12/microsoft-azure-mfa-breach-and-api-risks-underscore-need-for-proactive-cybersecurity-measures/]

08:40 Can AI Handle 70% of the Work? Crescendo’s Model Sparks a Revolution in Managed Services [https://www.businessof.tech/2024/12/12/can-ai-handle-70-of-the-work-crescendos-model-sparks-a-revolution-in-managed-services/]

 

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Google Gemini 2.0, Cybersecurity Breaches, and the Future of Managed Services

The episode starts with TeamViewer's acquisition of 1E for approximately $720 million. This strategic move aims to enhance TeamViewer's capabilities in digital workplace management and intelligent endpoint management, ultimately improving employee experience and operational efficiency. With TeamViewer already installed on over 2.5 billion devices globally, this acquisition is seen as a pivotal step in the convergence of remote support and endpoint management, reflecting the evolving needs of businesses in a digital-first world.

The episode also covers Microsoft's recent annual meeting, where shareholders rejected six proposals, including those addressing the risks associated with artificial intelligence and a suggestion to invest in Bitcoin. The board's opposition to these proposals highlights a preference for maintaining focus on existing strategies rather than diversifying into volatile investments. This decision underscores the shareholders' concerns regarding AI risks and the importance of governance in the development and deployment of AI technologies, indicating that companies must proactively assess these risks as they adopt new solutions.

Additionally, Host Dave Sobel highlights a report from BreachRx revealing that many publicly traded companies are struggling to comply with the SEC's new cyber disclosure rules. Despite the intention to enhance transparency, only 17% of public filings provided specific details about the material impact of cyber incidents, with many companies opting for vague language. This compliance gap raises concerns about the effectiveness of the SEC's regulations and the ongoing reluctance of organizations to disclose sensitive cybersecurity information, which they often view as critical business intelligence.

Finally, the episode addresses Microsoft's warning regarding the installation of Windows 11 on unsupported devices, emphasizing the potential compatibility issues and lack of support for security updates. As users continue to find workarounds to install the operating system on older hardware, Microsoft stresses the importance of adhering to minimum system requirements. This situation reflects the broader trend of companies tightening their upgrade policies, which can create opportunities for managed service providers and IT departments as they navigate the implications of these changes in the tech landscape.

Four things to know today

00:00 TeamViewer Acquires 1E for $720M to Drive Digital Workplace and Endpoint Management Evolution [https://www.businessof.tech/2024/12/11/teamviewer-acquires-1e-for-720m-to-drive-digital-workplace-and-endpoint-management-evolution/]

03:18 Microsoft's Annual Meeting Highlights Shareholder Pushback on AI Oversight and Cryptocurrency Ventures [https://www.businessof.tech/2024/12/11/microsofts-annual-meeting-highlights-shareholder-pushback-on-ai-oversight-and-cryptocurrency-ventures/]

05:32 SEC Cyber Disclosure Rules Fall Short as Companies Struggle with Compliance and Clarity [https://www.businessof.tech/2024/12/11/sec-cyber-disclosure-rules-fall-short-as-companies-struggle-with-compliance-and-clarity/]

07:10 Microsoft Warns Against Unsupported Windows 11 Installs, Highlights Compatibility Risks [https://www.businessof.tech/2024/12/11/microsoft-warns-against-unsupported-windows-11-installs-highlights-compatibility-risks/]

 

 

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

Each day, the flood of technology news hits. In an industry that always changes, those who deliver technology services need to focus on the information that matters to them. The Business of Tech podcast focuses on the news you need to know. Covering both the story and why it matters to the way services are created and delivered, channel veteran Dave Sobel brings you up to speed and gives you resources to go deeper. With insights and analysis, this five minute podcast focuses on the knowledge you need to be effective, profitable, and relevant.