Business of Tech: Daily 10-Minute IT Services Insights

Cyberattacks against U.S. government employees surged by 85% during the recent government shutdown, with projections estimating over 555 million attacks by the end of November 2025. These attacks, characterized as targeted digital assaults rather than generic phishing attempts, exploit vulnerabilities during periods of financial stress, particularly affecting essential employees in agencies like the Department of Veterans Affairs a...

Google has launched its latest AI model, Gemini 3, which is designed to enhance multimodal processing capabilities by simultaneously handling text, images, and audio. This model, particularly the Gemini 3 Pro version, aims to improve the accuracy and reasoning capabilities of AI systems, positioning Google to compete more effectively with OpenAI in the consumer AI market. The introduction of Gemini 3 Pro is part of a broader trend ...

Microsoft has launched Agent 365, a management platform designed for overseeing AI agents within enterprise environments. This platform, now available in early access, includes features such as the Microsoft Entra Registry for managing agent identities, risk-based access policies, and performance measurement tools. The introduction of Agent 365 signifies a shift towards integrating AI agents into standard business operations, allow...

The rise of artificial intelligence (AI) in cyber attacks is prompting small and medium-sized businesses (SMBs) to adopt managed detection and response (MDR) services and explore autonomous security operations centers (SOCs). Research from TechAisle indicates that awareness of MDR among SMBs increased from 39% in 2023 to 61% in 2025, with 89% of mid-market firms prioritizing cyber resilience. This shift is driven by the need for ef...

The recent partnership between OpenAI and Search Kings, a digital marketing firm, aims to provide ChatGPT services to small and medium-sized businesses (SMBs), particularly in the home services sector. This collaboration is designed to facilitate the integration of artificial intelligence into SMB operations, addressing the challenges these businesses face in adapting to AI technologies. The initiative highlights a shift in focus t...

Richardson Dackam, a solo developer known for rapidly creating AI-first SaaS products, shared insights into his development process during a recent episode of the Business of Tech. Dackam emphasizes the importance of identifying manageable problems that can be solved quickly, which he refers to as "done for you ideas." His approach involves extensive research to create a Product Requirement Document (PRD) and context engineering fo...

AI proof-of-concept projects are facing high failure rates, with a recent Omdia survey indicating that nearly one-third of companies report complete failures in these initiatives. Only 9% of firms successfully transition more than half of their AI projects into operational use, while 46% manage to move over 10% into production. The primary reason for these failures is not the technology itself but rather a lack of clearly defined b...

New research indicates that the use of artificial intelligence (AI) is expanding beyond established guidelines, with significant implications for IT leadership and security. A study from UpGuard reveals that over 80% of employees in sectors like finance and healthcare are utilizing unauthorized AI tools, often referred to as shadow AI. This trend raises security concerns, as nearly half of these employees report regular use of thes...

The expiration of the Cybersecurity Information Sharing Act (CISA) on September 30, 2025, has resulted in a notable decline in U.S. cyber defense capabilities, with a reported drop of over 70% in the sharing of threat indicators. This lapse has created a legal and operational vacuum, leading to increased delays in alert dissemination and a rise in cyber threats, particularly in critical sectors such as healthcare and energy. Federa...

ChatGPT and Microsoft CoPilot are leading the enterprise AI adoption race, with 67% and 58% of businesses utilizing these tools, respectively, according to a study by the Wharton Human AI Research Program. This trend highlights a significant gap between these dominant players and competitors like Claude, Perplexity, and DeepSeek, which have much lower adoption rates. Despite the rapid integration of generative AI into corporate env...

The U.S. job market is experiencing a gradual slowdown, with the unemployment rate rising to 4.36% in October 2025, according to estimates from the Chicago Federal Reserve. Despite an increase in layoff announcements, initial unemployment claims remain low at 229,000, indicating some stability. Major companies like Amazon, UPS, and Target have announced significant job cuts, but studies suggest these layoffs are not primarily drive...

Brantley Pearce, Chief Technology Officer at RJ Young, discussed the integration of IT services, workflow automation, and workplace technology within the managed services sector. RJ Young, a 70-year-old organization with approximately 700 employees, has been providing managed services since 2012 and has seen significant growth, now generating $12 billion in revenue. The company emphasizes a collaborative approach, utilizing account...

AI adoption is accelerating among small and mid-sized businesses (SMBs), with 87% of executives believing it will transform their operations within a year. However, only 29% feel their teams are prepared to implement AI effectively. This gap highlights a significant challenge for organizations that have invested in AI without seeing tangible returns. Anurag Agarwal, founder of TechAisle, emphasizes that while there are pockets of R...

ConnectWise has announced enhancements to its Ozzio platform, which now includes expanded third-party patching for over 7,000 applications, improvements to the professional services automation (PSA) user experience, and advanced robotic process automation (RPA) capabilities. These updates aim to address security vulnerabilities in widely exploited applications and streamline operations for managed service providers (MSPs). The new ...

Amazon has initiated legal action against Perplexity AI, alleging that the startup's AI browser improperly accesses Amazon customer accounts by mimicking human browsing behavior. The lawsuit, filed in the U.S. District Court for the Northern District of California, raises concerns about security risks associated with Perplexity's Comet browser. Amazon claims that this practice undermines customer experience and its curated shopping...

The Pentagon is preparing to enforce the Cybersecurity Maturity Model Certification (CMMC) requirements for small businesses, with compliance becoming mandatory in contracts starting November 10, 2025. Nearly 500 organizations have already achieved Level 2 certification, and the Defense Department is actively surveying small businesses to assess their readiness for these new standards. This initiative is expected to extend beyond D...

The managed service provider (MSP) market has surpassed $305 billion and is projected to reach $571 billion by 2033, indicating a strong trend toward consolidation within the sector. In the second quarter of 2025 alone, there were 92 announced mergers and acquisitions, as companies aim to enhance their cybersecurity capabilities and automate operations. Key areas of focus for leading MSPs include operations, talent, security, autom...

AI infrastructure spending is rapidly increasing, with major technology companies such as Google, Microsoft, and Amazon projected to invest over $300 billion by the end of 2025. This surge is primarily driven by the demand for data centers and GPU capacity to support artificial intelligence initiatives. While the Federal Reserve indicates that current investments differ from the dot-com boom due to stronger earnings among leading f...

Andrew Jordan, a CPA specializing in IT services and managed service providers (MSPs), discusses the implications of recent tax code changes for MSPs. The new legislation, referred to as the "big, beautiful bill," has introduced significant modifications, including the reinstatement of 100% bonus depreciation. This allows MSPs to write off the full cost of new servers and equipment in the year they are put into service, which can g...