The "Shadow AI" Threat in Your Business

"Am I secure?" is the wrong question. In this episode, Pankaj and Sahil sit down with Rudy Ordaz, CEO of DataWise Networks, to demystify cybersecurity for business owners. Rudy shares his journey from a mainframe technician to selling his own IT firm, breaking down the M&A strategies that helped him grow. They discuss the "Shadow AI" threat, why security is a continuous practice rather than a one-time project, and the simple 5-point checklist every founder needs to audit their business today.

Takeaways

• Security is a practice, not a project. You cannot simply "install" cybersecurity and be done. It requires ongoing maintenance, training, and cultural buy-in from leadership.
• The 5-Point Security Checklist: To be baseline secure, you need: 1) Multi-Factor Authentication (MFA), 2) Backups, 3) Device Management, 4) Permission Controls, and 5) Security Awareness Training.
• Beware of "Shadow AI." Employees are likely using unapproved AI tools to do their jobs, potentially leaking proprietary data. You need a policy to govern which tools are safe to use.
• The "E-Myth" Lesson: Most founders are "technicians" who think they can run a business. To succeed, you must transition from doing the work to managing the enterprise.
• M&A isn't just for giants. Rudy grew his firm by acquiring a competitor using an "earn-out" structure, paying for the acquisition over time using the revenue from the acquired clients.
• Contracts create value. When selling a service business, buyers don't care about your tech stack; they value the recurring revenue locked in by strong contracts (MSAs).
• The Human Factor: The weakest link in any security system is always the human. Phishing and social engineering bypass the best firewalls, making training essential.
• Don't trust devices. Consumer devices (smart speakers, phones) are listening for advertising data. A security mindset means questioning what you connect to your network.

Soundbites

• "Security is not a project... It's a practice that comes down from leadership."
• "I learned that most small businesses are started by technicians... you wake up one day and say, 'I can do this better.'"
• "I don't trust devices and technology at face value."

Keywords

Cybersecurity, Managed IT Services, M&A, Business Growth, The E-Myth, Shadow AI, Data Privacy, Tech Consulting, Entrepreneurship, Exit Strategy, Risk Management, DataWise Networks

Guest: Rudy Ordaz

• Company: DataWise Networks
• Website: datawisenetworks.com

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