Episodios

  • Hyperscaler Cloud Expansion Creates New AI Runtime Risks for MSPs

    Hyperscaler Cloud Expansion Creates New AI Runtime Risks for MSPs
    Apr 15 2026
    The episode reveals an accelerating structural shift toward infrastructure dependence and liability transfer in the context of AI and cloud adoption. According to analysis from Omnia and Synergy Research Group, hyperscalers such as Amazon, Microsoft, and Google are capturing a growing portion of global data center capacity, while real-world constraints—including finite GPU and power availability—are limiting expansion despite surging demand. This concentration makes the underlying compute power less elastic and more volatile, directly impacting how MSPs operationalize AI services. Vendors, meanwhile, are backing away from accountability for AI-driven outcomes, increasingly shifting risk and responsibility onto operators and integrators. Supporting evidence includes Omnia’s report of a 29% year-over-year jump in global cloud infrastructure services spend, reaching $110.9 billion in Q4 2025. AWS revenue increased 24%, Azure 39%, and Google Cloud 50% in the same period. Synergy Research Group found that enterprise on-premises data centers dropped from 56% of global capacity in 2018 to 32% by the end of 2025, with projections to fall further to 19% by 2031. Over 800 new hyperscale data centers are in the pipeline, but constraints on power and electrical equipment mean growth is not limitless. New AI workloads—such as Z AI’s GLM 5.1 model designed for autonomous, multi-hour tasks—underscore that demand is moving from short interactions to long-running processes, increasing unpredictability and operational risk. Additional developments reinforce this structural shift. TechCrunch reported that new tools are designed for prolonged AI workload monitoring, not just deployment, requiring persistent oversight and checkpoints. Microsoft's own Copilot terms flag the platform as for entertainment purposes only, disclaiming reliability and placing responsibility for business use on the operator. Research cited from Boston Consulting Group identified that 14% of workers using AI tools reported significant mental fatigue, with entry-level staff especially vulnerable. These trends highlight the operational and human governance burdens introduced by AI, which are not addressed by vendor promises. For MSPs and IT leaders, these mechanisms create immediate contract and operational risks. Overpromising capacity or reliability exposes providers to gaps in liability, especially since vendors disclaim responsibility for AI outputs. Service agreements should include explicit capacity constraint clauses and audit all AI tool deployments for vendor liability terms before renewals. Establishing governance, monitoring, and accountability as billable service layers is crucial; otherwise, these burdens will default to the MSP as unpaid liability. Hybrid and colocation strategies remain relevant for regulated clients who cannot wholly depend on hyperscalers. Moving forward, structured runtime quotas and compute governance may be required to manage risk as agentic workloads increase and vendor accountability recedes. 00:00 Cloud Capacity Crunch 03:53 Agentic AI Rises 05:32 Liability Shifts Down 08:34 Why Do We Care? Supported by: Nerdio ScalePad 💼 All Our SponsorsSupport the vendors who support the show:👉 https://businessof.tech/sponsors/ 🚀 Join Business of Tech PlusGet exclusive access to investigative reports, vendor analysis, leadership briefings, and more.👉 https://businessof.tech/plus 🎧 Subscribe to the Business of TechWant the show on your favorite podcast app or prefer the written versions of each story?📲 https://www.businessof.tech/subscribe 📰 Story Links & SourcesLooking for the links from today’s stories?Every episode script — with full source links — is posted at:🌐 https://www.businessof.tech 🎙 Want to Be a Guest?Pitch your story or appear on Business of Tech: Daily 10-Minute IT Services Insights:💬 https://www.podmatch.com/hostdetailpreview/businessoftech 🔗 Follow Business of Tech LinkedIn: https://www.linkedin.com/company/28908079YouTube: https://youtube.com/mspradioBluesky: https://bsky.app/profile/businessof.techInstagram: https://www.instagram.com/mspradioTikTok: https://www.tiktok.com/@businessoftechFacebook: https://www.facebook.com/mspradionews Hosted by Simplecast, an AdsWizz company. See pcm.adswizz.com for information about our collection and use of personal data for advertising.
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    12 m
  • Buyer Trust and Budget Tighten: Data Residency and Auditability Redefine MSP Eligibility

    Buyer Trust and Budget Tighten: Data Residency and Auditability Redefine MSP Eligibility
    Apr 14 2026
    Tightening budget constraints and rising data trust requirements are increasing operational pressure on managed service providers by shifting risk and accountability downward through the service chain. Developments in both the European and US markets, together with supply chain volatility and heightened scrutiny of where and how data is handled, are forcing MSPs to redefine both service delivery and governance models. According to Speaker A, MSPs focusing on auditability, clear data residency, and sovereignty will remain viable, while those relying on traditional narratives or ambiguous transformation pitches risk being sidelined. The episode points to evidence from several reports: Politico notes that 8 out of 10 Europeans do not trust US or Chinese firms with their data, highlighting explicit concerns over data location and custodianship. Concurrently, the U.S. Chamber of Commerce Small Business Index, cited by Axios, shows declining confidence among American small businesses, with only 37% expecting new investments and 53% listing inflation as their top challenge. Further, Channel Insider flags “memflation,” with DRAM and NAND prices expected to rise 125% and 243% respectively by 2026, intensifying margin pressure and pricing risk for operators. Additional risk drivers come from both operational and technical layers. Speaker A references the Blackpoint Cyber 2026 threat report, which attributes most breaches to the abuse of trusted credentials and tools—such as RMM solutions and SSL VPNs—rather than new vulnerabilities. Governance gaps are also worsened by declining white-collar hiring, as cited by Gallup and Axios, reducing internal capacity for vendor reviews, incident follow-up, and process controls. Increased automation and outsourcing in response to these gaps tend to create more dependency chains and larger blast radii, making explicit governance even more important. For MSPs, these findings point to operational needs that go beyond technical capability. Contract terms must address volatile input costs directly, with shorter quote validity and explicit repricing clauses. Governance processes should include audit-ready data maps, clear documentation of subprocessors, and proactive credential management. Without these measures, MSPs risk being treated as interchangeable commodities and exposed to margin compression and heightened liability from external compliance and trust requirements. 00:00 SMB Caution 03:48 Coordination Crunch 06:24 RMM Exposed 09:36 Why Do We Care? Supported by: Zero Networks HaloPSA 💼 All Our SponsorsSupport the vendors who support the show:👉 https://businessof.tech/sponsors/ 🚀 Join Business of Tech PlusGet exclusive access to investigative reports, vendor analysis, leadership briefings, and more.👉 https://businessof.tech/plus 🎧 Subscribe to the Business of TechWant the show on your favorite podcast app or prefer the written versions of each story?📲 https://www.businessof.tech/subscribe 📰 Story Links & SourcesLooking for the links from today’s stories?Every episode script — with full source links — is posted at:🌐 https://www.businessof.tech 🎙 Want to Be a Guest?Pitch your story or appear on Business of Tech: Daily 10-Minute IT Services Insights:💬 https://www.podmatch.com/hostdetailpreview/businessoftech 🔗 Follow Business of Tech LinkedIn: https://www.linkedin.com/company/28908079YouTube: https://youtube.com/mspradioBluesky: https://bsky.app/profile/businessof.techInstagram: https://www.instagram.com/mspradioTikTok: https://www.tiktok.com/@businessoftechFacebook: https://www.facebook.com/mspradionews Hosted by Simplecast, an AdsWizz company. See pcm.adswizz.com for information about our collection and use of personal data for advertising.
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    12 m
  • AI Collapsing the Software Layer: Risks for MSP Roles and Tech Debt with Dusty Gulleson

    AI Collapsing the Software Layer: Risks for MSP Roles and Tech Debt with Dusty Gulleson
    Apr 13 2026
    The episode focuses on the ongoing collapse of traditional software and service delivery layers, accelerated by the introduction of agent-based artificial intelligence (AI) solutions. According to Speaker B from Tectonic, legacy systems and accumulated technology debt create significant structural pressure on IT providers to modernize, while rapidly advancing AI technologies modify the interface between clients and service providers. The discussion specifically identifies agentic AI as a driver of this shift, fundamentally altering the nature of tasks such as software development, help desk support, and client interaction. A key development discussed involves the replacement of costly, static integrations with dynamic agent-based processes. Speaker B provided a real-world example in which AI was used to transfer data from an ERP system to a bank, bypassing the ERP vendor’s $50,000 per year API licensing model and executing the required workflow with approximately eight hours of labor. This case shows how AI is already enabling both operational cost reduction and workflow acceleration, but only when organizations are able to clearly define outcomes and trust new toolsets over legacy infrastructure. The shift is confirmed by observable adoption among some industrial and B2B clients, even as highly regulated sectors include strict no-AI clauses in contracts. The episode also surfaces secondary pressures such as resistance within higher education and government to AI adoption, citing explicit prohibitions in master service agreements. Despite this, organizations focused on increasing workflow velocity are expressing demand for AI-driven automation, highlighting a growing fragmentation in market readiness and adoption strategies. The ongoing reduction in reliance on software interfaces is paralleled by a convergence of roles such as account management, support, and delivery, which further impacts staffing models and operational expectations. For MSPs and IT leaders, these shifts increase the need for robust governance frameworks and risk evaluation when implementing AI. The rapid obsolescence of some technical roles, combined with accelerated depreciation of legacy systems, presents tradeoffs in investment and resource allocation. Providers will need to revisit hiring priorities—focusing less on technical troubleshooting and more on problem scoping, communication, and business analysis. The presence of complex client requirements and explicit contract exclusions of AI further complicate operational planning, reinforcing the need for accountable transition strategies and mature compliance safeguards. Supported by:Zero NetworksHaloPSAScalePad 💼 All Our SponsorsSupport the vendors who support the show:👉 https://businessof.tech/sponsors/ 🚀 Join Business of Tech PlusGet exclusive access to investigative reports, vendor analysis, leadership briefings, and more.👉 https://businessof.tech/plus 🎧 Subscribe to the Business of TechWant the show on your favorite podcast app or prefer the written versions of each story?📲 https://www.businessof.tech/subscribe 📰 Story Links & SourcesLooking for the links from today’s stories?Every episode script — with full source links — is posted at:🌐 https://www.businessof.tech 🎙 Want to Be a Guest?Pitch your story or appear on Business of Tech: Daily 10-Minute IT Services Insights:💬 https://www.podmatch.com/hostdetailpreview/businessoftech 🔗 Follow Business of Tech LinkedIn: https://www.linkedin.com/company/28908079YouTube: https://youtube.com/mspradioBluesky: https://bsky.app/profile/businessof.techInstagram: https://www.instagram.com/mspradioTikTok: https://www.tiktok.com/@businessoftechFacebook: https://www.facebook.com/mspradionews Hosted by Simplecast, an AdsWizz company. See pcm.adswizz.com for information about our collection and use of personal data for advertising.
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    21 m
  • Why Remediation Capacity, Not Detection, Now Defines MSP Accountability

    Why Remediation Capacity, Not Detection, Now Defines MSP Accountability
    Apr 10 2026
    The episode identifies a structural shift in the MSP business model: security is no longer a discrete service or line item but has become the organizing principle for operations and accountability. This is driven by an industry-wide trend toward increased automation in both attack and defense, as well as a shift in liability and accountability from vendors to the MSPs themselves. Companies such as Acronis and Anthropic are highlighted for introducing tools that increase the rate and automation of threat discovery, while research and market analysis by Watchguard and Jay McBain indicate that the capacity to remediate, rather than discover, security threats now forms the operational bottleneck. The most consequential development referenced is the acceleration of security automation and vulnerability discovery, specifically through Anthropic's Project Glasswing and Watchguard’s reporting of a 1,500% surge in new endpoint malware variants. Anthropic’s approach—limiting broad release of its model due to potential misuse for rapid exploitation—was supported by partnerships with cloud and technology firms like AWS, Apple, Google, and Microsoft, backed by up to $100 million in usage credits. Watchguard’s data demonstrates that while threat discovery is increasing, the rate of remediation has not kept pace, creating a supply-demand imbalance in skilled security operations. Further reinforcing this trend, Acronis has promoted a 24x7x365 Managed Detection and Response (MDR) tool positioned to let MSPs deliver always-on monitoring without managing a full security operations center. Meanwhile, broader channel and delivery ecosystem analysis by Jay McBain emphasizes that partners, rather than platform vendors, bear primary responsibility for steady-state customer environments. This confluence of developments shifts the value—and the risk—onto the operational capabilities and governance structures of MSPs. Other referenced solutions, such as Zero Networks’ microsegmentation, underscore that containing damage, not just preventing access, is a new business imperative. The operational implication for MSPs and IT providers is a shift from measuring security by tools deployed to measuring and pricing security by demonstrated remediation throughput. Service contracts will need to specify not only what solutions are deployed, but also explicit commitments on response times, closure rates, and SLA-backed operating motions. A lack of clear remediation commitments raises unpriced liability as discovery rates outpace closure capacity. Providers are encouraged to separate vulnerability discovery reporting from remediation progress, build reporting layers that highlight closure rates, and reconsider flat-fee models that do not account for increased operational workloads and accountability risks. 00:00 Closure Is Finite 04:10 Close the Gap 06:32 Govern or Absorb 08:57 Why Do We Care? Supported by: Zero Networks ScalePad 💼 All Our SponsorsSupport the vendors who support the show:👉 https://businessof.tech/sponsors/ 🚀 Join Business of Tech PlusGet exclusive access to investigative reports, vendor analysis, leadership briefings, and more.👉 https://businessof.tech/plus 🎧 Subscribe to the Business of TechWant the show on your favorite podcast app or prefer the written versions of each story?📲 https://www.businessof.tech/subscribe 📰 Story Links & SourcesLooking for the links from today’s stories?Every episode script — with full source links — is posted at:🌐 https://www.businessof.tech 🎙 Want to Be a Guest?Pitch your story or appear on Business of Tech: Daily 10-Minute IT Services Insights:💬 https://www.podmatch.com/hostdetailpreview/businessoftech 🔗 Follow Business of Tech LinkedIn: https://www.linkedin.com/company/28908079YouTube: https://youtube.com/mspradioBluesky: https://bsky.app/profile/businessof.techInstagram: https://www.instagram.com/mspradioTikTok: https://www.tiktok.com/@businessoftechFacebook: https://www.facebook.com/mspradionews Hosted by Simplecast, an AdsWizz company. See pcm.adswizz.com for information about our collection and use of personal data for advertising.
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    12 m
  • AI Monetization Remains Out of Reach for Most MSPs, Say GTIA’s Carolyn April and CompTIA’s Seth Robinson

    AI Monetization Remains Out of Reach for Most MSPs, Say GTIA’s Carolyn April and CompTIA’s Seth Robinson
    Apr 9 2026
    The central structural shift examined is the widening disconnect between the vendor-driven narrative of rapid AI monetization and the operational reality faced by MSPs, as exposed by recent research from GTIA and CompTIA. Despite pervasive messaging from technology vendors that AI features are ready for seamless integration and immediate profitability, survey data indicates that most MSPs remain in early adoption stages, lack tangible processes to operationalize AI, and are stymied by workforce and workflow constraints. Supporting evidence is drawn from CompTIA’s data showing that 70% of businesses are still in early AI adoption stages, and only 55% of MSPs expect to turn a profit on AI initiatives in the near term—up from 34%, but well below vendor promises. The majority of current AI activity remains at the individual user level rather than embedded in business-wide workflows, restricting quantifiable ROI and limiting the visibility of productivity gains. Both Speaker B and Speaker C emphasized that most MSPs do not yet have the organizational capability or maturity to move beyond experimentation to operational deployment and monetization. Related developments further illustrate this operational gap. Research cited by Speaker B highlights that only a subset of larger MSPs with more resources have been able to achieve early success with AI, while most are still grappling with process integration, pricing strategies, and talent acquisition. Both GTIA and CompTIA reports suggest that optimism among firms about AI’s potential is running ahead of genuine structural change, with workforce shortages, undefined internal governance, and difficulties in business model adaptation acting as durable barriers. Market sentiment remains positive, but actual organizational transition lags significantly, especially among smaller MSPs. Operationally, this environment introduces heightened risk for MSPs who overcommit on vendor promises without aligning internal processes, workforce strategy, and governance. Dependencies on vendor-supplied AI tools expose firms to pricing uncertainty and potential margin compression, especially as clients begin questioning the value proposition when human roles are replaced by automation. Without formalized internal AI governance and skill development, most MSPs face mounting challenges in demonstrating measurable ROI, adapting delivery models, and sustaining service margins. The implication for decision-makers is the need for prudent, phased adoption—prioritizing internal process maturity and realistic expectations over rapid adoption in response to vendor pressure. Supported by: CometBackUpTimeZest 💼 All Our SponsorsSupport the vendors who support the show:👉 https://businessof.tech/sponsors/ 🚀 Join Business of Tech PlusGet exclusive access to investigative reports, vendor analysis, leadership briefings, and more.👉 https://businessof.tech/plus 🎧 Subscribe to the Business of TechWant the show on your favorite podcast app or prefer the written versions of each story?📲 https://www.businessof.tech/subscribe 📰 Story Links & SourcesLooking for the links from today’s stories?Every episode script — with full source links — is posted at:🌐 https://www.businessof.tech 🎙 Want to Be a Guest?Pitch your story or appear on Business of Tech: Daily 10-Minute IT Services Insights:💬 https://www.podmatch.com/hostdetailpreview/businessoftech 🔗 Follow Business of Tech LinkedIn: https://www.linkedin.com/company/28908079YouTube: https://youtube.com/mspradioBluesky: https://bsky.app/profile/businessof.techInstagram: https://www.instagram.com/mspradioTikTok: https://www.tiktok.com/@businessoftechFacebook: https://www.facebook.com/mspradionews Hosted by Simplecast, an AdsWizz company. See pcm.adswizz.com for information about our collection and use of personal data for advertising.
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    35 m
  • AI Governance Moves Center Stage: Why Audits and Policy Now Define MSP Risk

    AI Governance Moves Center Stage: Why Audits and Policy Now Define MSP Risk
    Apr 8 2026
    The episode identifies a structural shift in the evaluation and deployment of AI within organizations: decision-making is now driven by governance, control, and auditability rather than by features or capabilities of AI tools. This mechanism is anchored in the need for defendable practices amidst heightened scrutiny from institutions, regulators, and insurers. The change is observable in companies such as Anthropic and OpenAI, as well as in regulatory and procurement activities tracked by outlets like The New York Times and Business Insider, signaling that market adoption is tightly coupled to liability, enforcement, and institutional risk visibility. A primary area of evidence is cybersecurity, where state-sponsored attackers have leveraged AI to automate infiltration attempts, according to reporting on Anthropic’s disclosures concerning Chinese actors targeting dozens of companies and agencies. The same sources note that Anthropic’s AI identified over 500 previously unknown zero-day vulnerabilities in open-source software, demonstrating increased operational tempo and automation on both sides of the cybersecurity equation. In procurement, declining app download metrics for Claude, following its involvement in U.S. security policy narratives, showcase how reputational and geopolitical risk can quickly alter adoption patterns. Additional developments reinforce this trend. Machine learning conferences have systematically audited and penalized the use of AI-generated peer review, leading to hundreds of paper rejections and mass article retractions, according to Semaphore and Nature. On the hardware front, HP, AMD, and Intel are collaborating to address BitLocker vulnerabilities via an industry standard rather than proprietary features, illustrating how vendors are responding to systemic risk through structural controls and standards. Channelholic’s references to workforce limitations underscore that automation’s workload cannot be absorbed by labor alone. For MSPs and IT service providers, these developments mean the core value proposition shifts from offering AI tools to governing their use, ensuring full documentation, traceability, and defensibility. Failure to treat this as a governance issue leads to underpricing, overlooked controls, and transfer of liability for autonomously executed actions. Providers must now develop acceptable use policies, audit AI agent activity logs, and systematically vet vendors on audit trail, policy, and breach notification—otherwise risking exclusion from regulated deals and exposure to contractual and compliance penalties. 00:00 The Visibility Problem 03:45 Platform Lock-In 06:30 Governed or Liable 09:35 Why Do We Care? Supported by: CometBackUp and TimeZest 💼 All Our SponsorsSupport the vendors who support the show:👉 https://businessof.tech/sponsors/ 🚀 Join Business of Tech PlusGet exclusive access to investigative reports, vendor analysis, leadership briefings, and more.👉 https://businessof.tech/plus 🎧 Subscribe to the Business of TechWant the show on your favorite podcast app or prefer the written versions of each story?📲 https://www.businessof.tech/subscribe 📰 Story Links & SourcesLooking for the links from today’s stories?Every episode script — with full source links — is posted at:🌐 https://www.businessof.tech 🎙 Want to Be a Guest?Pitch your story or appear on Business of Tech: Daily 10-Minute IT Services Insights:💬 https://www.podmatch.com/hostdetailpreview/businessoftech 🔗 Follow Business of Tech LinkedIn: https://www.linkedin.com/company/28908079YouTube: https://youtube.com/mspradioBluesky: https://bsky.app/profile/businessof.techInstagram: https://www.instagram.com/mspradioTikTok: https://www.tiktok.com/@businessoftechFacebook: https://www.facebook.com/mspradionews Hosted by Simplecast, an AdsWizz company. See pcm.adswizz.com for information about our collection and use of personal data for advertising.
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    13 m
  • AI Deployment Exposes Workflow Gaps—MSPs Face Increased Liability and Coordination Demands

    AI Deployment Exposes Workflow Gaps—MSPs Face Increased Liability and Coordination Demands
    Apr 7 2026
    Automation and AI are shifting the pricing and accountability models for managed service providers, with risk increasingly centered on governance, workflow coherence, and outcome measurement rather than tool deployment. Evidence from studies like Fixify, reports from ChannelLive, and real-world cases such as the City of Seattle’s pause on Microsoft Copilot rollout highlight that technology adoption is now gated less by access to solutions and more by readiness to govern, coordinate, and prove outcomes across fragmented processes. Automation exposes underlying coordination debt, moving the client focus from paying for labor time to demanding measurable outcomes and managed exceptions. Fixify’s analysis of more than 50,000 support tickets from 30+ organizations showed tickets with at least 75% automation saw average resolution in 4.4 hours versus roughly three days for non-automated tickets. Data cited from OpenAI found that 93% of London SMBs use AI tools, but readiness and uptake are highly uneven within the UK. In Seattle, more than 450 labor hours per week were reported saved during the Copilot pilot, yet adoption was paused due to concerns over data governance and accountability for errors, not tool capability. According to coverage in GeekWire and IT Pro, these dynamics are shifting buyer expectations and vendor liabilities. Supporting developments include security concerns outlined by Kaseya’s INKY report, which highlights the normalization of AI-generated phishing and changes in attack formats, forcing defenders to rethink detection and response. The operational surface of automation—where AI reshapes data, not just moves it—means standard controls and classic alerts are increasingly bypassed. Reports from Information Week and experts such as Dan Lorman emphasize that accountability for exceptions, shadow AI usage, and data exposure is shifting by default onto providers, whether or not contracts address these risks. These trends mean MSPs face direct operational and contract exposure: clients and auditors are demanding proof of how AI touches data, how exceptions are handled, and where logs and controls exist. Pricing based on seats or tickets is becoming harder to defend as automation compresses labor and raises expectations for accountability. Providers must reconsider SLAs, explicitly define automation boundaries, charge for governance activities, and move toward outcome-based pricing models if they want to avoid absorbing unpriced liability and operational complexity. 00:00 Automation Divide 04:27 Coordination Debt 06:01 Automation Liability 09:18 Why Do We Care? Supported by: JumpCloud HaloPSA 💼 All Our SponsorsSupport the vendors who support the show:👉 https://businessof.tech/sponsors/ 🚀 Join Business of Tech PlusGet exclusive access to investigative reports, vendor analysis, leadership briefings, and more.👉 https://businessof.tech/plus 🎧 Subscribe to the Business of TechWant the show on your favorite podcast app or prefer the written versions of each story?📲 https://www.businessof.tech/subscribe 📰 Story Links & SourcesLooking for the links from today’s stories?Every episode script — with full source links — is posted at:🌐 https://www.businessof.tech 🎙 Want to Be a Guest?Pitch your story or appear on Business of Tech: Daily 10-Minute IT Services Insights:💬 https://www.podmatch.com/hostdetailpreview/businessoftech 🔗 Follow Business of Tech LinkedIn: https://www.linkedin.com/company/28908079YouTube: https://youtube.com/mspradioBluesky: https://bsky.app/profile/businessof.techInstagram: https://www.instagram.com/mspradioTikTok: https://www.tiktok.com/@businessoftechFacebook: https://www.facebook.com/mspradionews Hosted by Simplecast, an AdsWizz company. See pcm.adswizz.com for information about our collection and use of personal data for advertising.
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    13 m
  • Richard Luna: MSPs Risk Margin Erosion by Relying on Rented Stacks and App Reselling

    Richard Luna: MSPs Risk Margin Erosion by Relying on Rented Stacks and App Reselling
    Apr 6 2026

    The episode exposes a structural shift in the MSP sector toward increased commoditization and infrastructure dependence, with an industry trend favoring outsourced, app-focused service delivery over internal technical depth. Protected Harbor, led by Richard Luna, is presented as a counterpoint—running its own infrastructure and software, and prioritizing ownership of the technical stack rather than relying extensively on third-party platforms. Luna argues this industry-wide movement has created a market where low entry barriers and rented, commoditized solutions undermine differentiation and inflate operational risk.

    Central to the discussion is the declining emphasis on technical generalists within MSP organizations, replaced by hyper-specialization and a proliferation of app resale as a service model. Luna attributes industry-wide declines in service quality and net promoter scores (typically ranging from 30–38 for MSPs) to these trends, suggesting the loss of generalist skills erodes problem-solving capacity and increases reliance on external vendors for core functions. He states that running owned infrastructure and open-source tools allows for tighter cost controls, standardization, and faster response to operational events—a contrast to MSP models that outsource most functions.

    Supporting developments include a detailed critique of the risk dynamics associated with using hyperscale vendors for client-facing services. Luna distinguishes between utility-grade services like power, which can be outsourced without significantly affecting the customer relationship, and services closer to the client experience (e.g., remote access, help desk, data workflows) that, if outsourced, reduce both control and differentiation. Additional risk surfaces are highlighted with the integration of AI and automation, especially when MSPs use large public models that may ingest sensitive client data and create potential information leakage or competitive exposure.

    The operational implications for MSPs and IT leaders include heightened vendor dependency, expanding contract risk, and declining service quality when organizations prioritize app resale and specialization over in-house competency and direct infrastructure management. To mitigate these risks, the episode suggests MSPs should reassess which functions to control internally versus outsource, invest in developing technical generalists, and scrutinize the downstream effects of workflow automation and AI adoption—especially regarding client data privacy, model training, and real-time operational accountability.

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    27 m