Dave Sobel is joined by analysts Ryan Morris and Seth Robinson to discuss the current state of the SaaS industry, the challenges with pricing models, and the impact of AI on the market. The analysts delve into the maturing nature of SaaS, highlighting the importance of demonstrating value to customers and the need for a shift towards outcome-based pricing models. They also explore the evolving landscape of AI and its potential to disrupt traditional pricing structures in the SaaS world. The conv...
Aug 23, 2024•35 min•Ep. 1396
Generative AI is currently facing a downturn, with Gartner placing it at the peak of inflated expectations and urging organizations to assess ROI and maturity before deployment. The hype cycle identifies four emerging technology themes, including autonomous AI, total experience, and human-centric security. Despite projections of generative AI accounting for over 40% of the total AI industry market size by 2030, concerns about profitability due to high development costs remain. However, RBC analy...
Aug 22, 2024•13 min•Ep. 1395
AI continues to make waves across various industries, with the American Bar Association issuing ethical guidelines for lawyers using generative AI tools. The importance of competence, confidentiality, and client communication is emphasized, highlighting the need for responsible AI adoption. In the insurance sector, AI integration is on the rise, offering benefits such as improved claims processing and fraud detection. However, challenges like organizational resistance and technical complexity hi...
Aug 21, 2024•12 min•Ep. 1394
A massive data breach at National Public Data exposed billions of records and raised concerns about data aggregation risks. The breach, believed to be caused by a third-party hacker, leaked personal information like names and social security numbers, prompting individuals to monitor their credit reports for any suspicious activity. The second topic covers vulnerabilities found in Microsoft Azure's AI Health Bot service, which could allow for privilege escalation and access to cross-tenant resour...
Aug 20, 2024•9 min•Ep. 1393
The episode begins with a focus on the easing inflation rate, which has shifted the Federal Reserve's attention towards the labor market amidst a surge in mortgage applications. The report highlights the increasing demand for managed services, particularly among small and medium-sized businesses lacking in-house IT support. Cisco's announcement of laying off 6,000 employees as part of a restructuring plan centered on AI and security is discussed next. This move reflects the company's strategic s...
Aug 19, 2024•10 min•Ep. 1392
When Marcus Olson, CEO of Pliancy, returned to the Business of Tech Lounge, he discussed the evolution of his business model over the past two years. Despite facing volatility in the economy, particularly in the biotech, venture capital, and private equity sectors, Olson emphasized the importance of a consultative approach in building relationships with clients. He highlighted the challenges of managing a diverse team with varying reactions to market conditions, emphasizing the need for trust an...
Aug 17, 2024•35 min•Ep. 1389
Google introduces Gemini Live, a voice chat feature powered by generative AI, offering enhanced speech capabilities and natural conversations. Meanwhile, Flux, an open-source AI image generation model developed by Black Forest Labs, gains popularity for its superior performance in rendering people. The rapid advancements in AI technology are highlighted, showcasing the iterative progress and the potential for models like Flux to quickly surpass competitors like Midjourney. The episode also delve...
Aug 15, 2024•8 min•Ep. 1388
Google's AI overviews in search results have significantly decreased due to user complaints about incorrect answers, prompting the company to refine its implementation. MIT launched the AI Risk Repository, a database cataloging over 700 unique risks associated with AI systems to assist organizations in assessing and mitigating AI risks. Additionally, Dashlane's Passkey report showcased the rapid adoption of Passkeys as a password replacement, driven by consumer demand in various sectors. The epi...
Aug 14, 2024•12 min•Ep. 1387
A study from Washington State University reveals that using AI terminology in product descriptions can decrease consumer trust, particularly for high-risk products like electronics and medical devices. Marketers are advised to focus on highlighting product features and benefits instead of emphasizing AI technology to enhance sales. The episode also highlights the positive impact of generative AI on businesses, with 74% of companies reporting a return on investment within a year and 86% experienc...
Aug 13, 2024•14 min•Ep. 1386
Despite concerns of a potential recession, economic indicators suggest continued growth, with the National Bureau of Economic Research indicating positive job growth and stable personal income. This despite Wall Street's reaction to weak job data. Dave Sobel delves into the IT sector, citing the 2024 Information Week US IT Salary Report, which reveals job stress and layoffs among IT professionals. Tech employment in the U.S. saw a decline in July 2024, with losses in certain sectors offsetting g...
Aug 12, 2024•16 min•Ep. 1385
Dave interviews Cody Schneider, the CEO of Draft Horse AI and Swell AI, who shares insights on automating workflows using artificial intelligence (AI). Cody emphasizes the importance of AI in structuring unstructured data to streamline processes within organizations. By implementing AI tools to automate tasks like paperwork in real estate and sales, companies can enhance efficiency and allow employees to focus on high-touch human aspects of their work. Cody discusses the significance of data man...
Aug 10, 2024•23 min•Ep. 1378
This bonus episode dives into the technology positions outlined in the Republican and Democratic Party platforms. The focus is on policy, not personality, with no ads, sponsors, or personal opinions included. The episode aims to inform listeners about the party platforms without pushing any specific political agenda. All our Sponsors: https://businessof.tech/sponsors/ Do you want the show on your podcast app or the written versions of the stories? Subscribe to the Busi...
Aug 08, 2024•10 min•Ep. 1381
Doug Milburn, co-founder of 45 Drives, discusses the role of open source solutions in the tech industry. Doug emphasizes the importance of open source in reducing risks for businesses by providing reliable, secure, and cost-effective solutions. He highlights the community-driven nature of open source software and the need for proper implementation to mitigate project risks. Dave challenges the notion that open source is a one-size-fits-all solution, pointing out the complexities and potential ri...
Aug 06, 2024•24 min•Ep. 1377
The potential of AI is to enhance the productivity of top performers within organizations. The focus is on leveraging AI to elevate the performance of senior employees rather than just junior staff. By empowering top players with AI tools, businesses can drive productivity improvements from a top-down perspective, leading to more significant overall gains in efficiency and effectiveness. The guest, Colin Britton, shares his extensive experience in utilizing data science and machine learning tech...
Aug 04, 2024•21 min•Ep. 1376
Dave Sobel welcomes Anurag Agarwal from TechIsle to discuss research data on customer expectations, cybersecurity, and AI trends. The conversation delves into the increasing budget allocations for IT security among SMBs, highlighting the importance of consulting services in guiding SMBs towards choosing the right security technologies and frameworks. Anurag emphasizes the shift towards cybersecurity as a business risk, prompting SMBs to focus on cyber resiliency rather than just cybersecurity. T...
Aug 03, 2024•32 min•Ep. 1383
In the aftermath of the CrowdStrike outage, Delta Airlines estimates a $500 million loss due to flight cancellations and financial repercussions. Delta is considering legal action against CrowdStrike and Microsoft, with shareholders also filing a lawsuit against CrowdStrike for alleged misleading information. The Cyber Safety Review Board is contemplating an investigation into CrowdStrike's incident, while over 180 software companies have committed to CISA's Secure by Design pledge to enhance cy...
Aug 01, 2024•11 min•Ep. 1384
Remote work popularity is surging, with full-time remote workers expected to rise from 12.7% to 22% next year. CISOs are facing significant security challenges due to remote work, leading to a greater reliance on zero-trust security frameworks. Despite some companies favoring in-person attendance, remote work continues to grow in popularity, with 98% of employees desiring remote work. The episode highlights unique AI use cases in politics, weather forecasting, and social interactions. For instan...
Jul 31, 2024•10 min•Ep. 1382
In the current landscape of AI sentiment analysis, there are challenges faced by organizations in justifying the costs of generative AI projects. While executives expect AI to boost productivity, employees report feeling overwhelmed and experiencing burnout due to increased workloads. This discrepancy between leaders and employees underscores the need for organizations to invest in AI implementation, leverage freelance talent, and rethink productivity metrics to address these issues effectively....
Jul 30, 2024•9 min•Ep. 1380
First, an overview of the current state of the U.S. economy, highlighting positive trends such as the expansion of the services sector and a slight pickup in GDP growth for the April-June period. Despite concerns about a high interest rate environment, the economy remains resilient, with jobless claims and durable goods orders aligning with a positive growth outlook. The episode also delves into the projected growth of consumer tech spending in the U.S., with a 1% increase expected this year and...
Jul 29, 2024•9 min•Ep. 1379
Srini Koushik, President of Technology and Sustainability at Rackspace, discusses the changing landscape of sustainability and AI in the IT services market. Srini highlights the importance of incorporating sustainability into services in a more holistic manner, considering factors such as climate change, income inequality, and equitable AI implementation. He emphasizes the need for conscious consumer choices and selecting vendors who prioritize sustainability in their operations. The conversatio...
Jul 28, 2024•23 min•Ep. 1365
Dave Sobel and channel expert Ryan Morris discuss the aftermath of the CrowdStrike incident and the importance of focusing on software quality in the tech industry. They emphasize the need for technology vendors to prioritize reliability, stability, security, and manageability in their products to prevent future outages and vulnerabilities. The conversation highlights the role of MSPs and channel companies in ensuring that the technology they offer is reliable and professionally supported, ultim...
Jul 27, 2024•44 min•Ep. 1374
We discuss the aftermath of CrowdStrike's software update crash, which cost Fortune 500 companies an estimated $5.4 billion. The update caused widespread disruptions, particularly in the aviation, healthcare, and banking sectors. CrowdStrike is working on improving their testing policies and deployment strategies to prevent similar incidents in the future. The fallout from the crash has led to investigations by the Department of Transportation and calls for congressional hearings. Another highli...
Jul 25, 2024•11 min•Ep. 1375
The episode begins with a discussion on a vulnerability in Microsoft's Windows Hello for Business authentication model, which has been found to be susceptible to downgrade attacks. Microsoft has released a fix for this issue to enhance security measures. Additionally, the episode highlights AT&T's decision to pay a ransom to prevent the exposure of stolen call records, shedding light on the prevalent trend of companies paying ransoms after cyber attacks. The episode also delves into Switzerland'...
Jul 24, 2024•10 min•Ep. 1373
Global IT spending is projected to surge by 7.5% in 2024, driven by increased demand for data center systems and IT services, particularly generative AI. The growth forecast highlights the sustained demand for managed services and cloud solutions, indicating a shift towards comprehensive IT management solutions offered by MSPs. Secondly, Meta, the parent company of Facebook, is facing a regulatory showdown in the EU as it withholds its new multimodal AI model from European customers due to regul...
Jul 23, 2024•12 min•Ep. 1372
CrowdStrike released a software update that caused Windows machines to enter a boot loop, impacting around 8.5 million devices globally. The CEO of CrowdStrike issued an apology for the incident, highlighting the need for software vendors to prioritize quality and minimize flaws in their products. The aftermath of the incident raises questions about the trade-offs between efficiency and reliability in the tech industry. The second incident discussed is the dismissal of most of the Security and E...
Jul 22, 2024•13 min•Ep. 1371
Tyler Hochman, CEO of FORE Enterprise, discusses their AI workforce analytics platform that predicts employee turnover before employees themselves are aware of their intentions to leave. The technology utilizes a combination of external and internal data sources to create predictive models on both aggregate and individual levels. External data sources include census information, demographics, and economic trends, while internal data encompasses employee performance metrics like utilization and s...
Jul 21, 2024•17 min•Ep. 1364
ost Dave Sobel delves into the question of how he would start a managed services provider (MSP) today. He emphasizes the importance of not solely focusing on monthly recurring revenue but also considering other revenue sources like project work and product gross margin. Sobel highlights the need for MSPs to run efficient operations and maximize service gross margins to ensure profitability. He stresses the significance of providing valuable insights and advice to customers to enhance their busin...
Jul 20, 2024•20 min•Ep. 1369
Mistral launched CodeStrollMamba and MathStroll, outperforming open-source models. OpenAI released GPT-4.0 Mini, a cost-efficient AI model, while Microsoft introduced Spreadsheet LLM for spreadsheet analysis. AWS unveiled AWS AppStudio for creating enterprise applications effortlessly. Microsoft's checkpoint cumulative updates for Windows 11 aim to deliver smaller, faster updates through periodic cumulative updates and incremental binary differentials. The change is expected to reduce the size o...
Jul 18, 2024•12 min•Ep. 1370
We highlight the low adoption rate of enterprise-wide AI plans, with only 17% of businesses actively discussing and implementing AI strategies. The need for more robust strategic frameworks to integrate AI effectively is emphasized, as early adopters with clear plans stand to gain a competitive edge in the market. The episode also covers updates on cybersecurity measures, with the White House urging federal agencies to request additional funding for enhancing the nation's cybersecurity defenses....
Jul 17, 2024•10 min•Ep. 1368
New data is revealed showing the increasing prevalence of remote work among Americans, with companies embracing flexibility and hybrid work models. Unique equity grants with varying vesting schedules are becoming more common in the tech industry, offering companies a way to attract talent and save money. Additionally, a trial of a four-day workweek at a UK council showed promising results, including reduced staff turnover and improved worker mental health. The episode also delved into recent cyb...
Jul 16, 2024•11 min•Ep. 1367
