Welcome to episode 215 of the Killing IT Podcast! In this lively installment, hosts Karl Palachuk, Dave Sobel, and Ryan Morris kick off the new year by comparing winter experiences across the country—from sunny California to snow-blocked Virginia and the mild slopes of Utah.

The conversation quickly shifts gears to tackle some of the biggest challenges—and opportunities—facing IT businesses today. The trio dives deep into the global arms race for electricity, highlighting China's explosive growth in energy capacity and exploring what it means for data centers, AI, quantum computing, and the MSP landscape. They emphasize that reliable power isn’t just a utility, but the lifeblood of all technological progress.

The hosts then dissect major investments in AI within the IT services industry, focusing on the partnership between Thrive Holdings, Shield Technology Partners, and OpenAI. Will the influx of capital and the hands-on involvement of OpenAI engineers reshape managed services—or disrupt the competitive landscape for smaller providers?

Finally, the conversation turns to the hot topic of AI-driven software development and its impact on the traditional software industry. Is it hype, a genuine threat, or a new era of innovation? Dave, Ryan, and Karl share strong opinions on whether AI will augment or replace human developers, and what that means for both market leaders and scrappy startups.

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Topic 1: Is there a valid reason for Bitcoin to exist?

You can now use Venmo (a subsidiary of PayPal) to pay for your tacos at Taco Bell. This is just the latest addition (see Apple Pay and Google Pay). Cash App is available indirectly as a card through Apple Pay and Google Pay.

E-payments are expanding all the time. We can move money to relatives via apps from banks and services like Venmo.

So what role does Bitcoin play other than hiding assets and transactions from the government?

https://www.tacobell.com/offers-and-deals?utm_source=venmo

Topic 2: Will Cyber Security have to Be a Private Function?

CMMC (Cybersecurity Maturity Model Certification) became “effective” November 10th. At this point, it’s unclear whether there’s any funding for compliance with the regulations.

At the same time, CISA staff and funding have been slashed and it’s not yet clear what funding will look like going forward.

Is security, monitoring of foreign actors, and distribution of cyber security-related information and alerts now simply left to the private sector by default? While some vendors will see money in pieces of this puzzle, is there a financial incentive to create a comprehensive cyber security infrastructure that’s not funded by the government?

Topic 3: Innovation Outpaces Adoption … Creating a Roadblock for Growth

https://www.linkedin.com/pulse/speed-innovation-outpacing-adoptionwho-you-gonna-call-geoffrey-moore-4kyef/

https://www.linkedin.com/pulse/disruptive-innovationthe-game-changing-geoffrey-moore-cjhyc/

The speed of technology innovation has accelerated. The speed of technology adoption has not. This creates a backlog of trapped value for customers and a growth obstacle for vendors. How can we solve this? It’s all about partners getting involved to deliver implementation / adoption services for emerging / disruptive technologies. Not “selling stuff” … but enabling customers to adopt stuff and get real value from it.

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The episode delves into the evolving landscape of artificial intelligence (AI) and its implications for businesses, particularly in the IT sector. The hosts discuss the current state of AI, emphasizing the need for IT professionals to understand and implement AI solutions effectively. They highlight the importance of training staff on AI technologies and suggest that businesses should focus on automation rather than merely labeling their services as AI-driven. The conversation underscores the necessity of engaging with clients to identify their specific needs and how AI can be leveraged to address those challenges.

The hosts also touch on the recent developments in the Global Technology Industry Association (GTIA) and its efforts to redefine its mission and community engagement. They reflect on their experiences at the GTIA's ChannelCon event, noting a positive atmosphere and a renewed focus on connecting IT professionals across various sectors. Despite the enthusiasm, they express concerns about the relatively low membership numbers and the need for the organization to demonstrate its value to attract a broader audience.

A significant portion of the discussion revolves around the geopolitical implications of AI technology, particularly regarding the sale of AI chips by companies like Nvidia and AMD to China. The hosts explore the complexities of international trade and security, questioning the motivations behind China's demand for assurances against backdoors in these chips. They highlight the irony of China, a country with its own history of security breaches, insisting on such guarantees, and discuss the broader implications for global technology collaboration.

Finally, the episode emphasizes the critical need for security to be integrated into technology from the ground up. The hosts argue that manufacturers should not be allowed to sell products that lack inherent security features. They advocate for a shift in the industry mindset, where security is a fundamental aspect of product design rather than an afterthought. This conversation leads to a broader reflection on the responsibility of IT professionals to educate clients about security and the importance of proactive measures in an increasingly interconnected world.

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