Business of Tech: Daily 10-Minute IT Services Insights – Details, episodes & analysis

Dave Sobel is joined by Hugo Malan, an expert in building workforces with a mixed labor strategy. They discuss the concept of a mixed labor strategy, which involves using different forms of labor to create an optimal mix for specific circumstances. This strategy allows companies to adjust their cost structure and increase flexibility by incorporating permanent employees, temporary workers, and services from external firms. The discussion delves into the challenges faced by small businesses in balancing their workforce composition, especially in response to fluctuations in demand.

Malan emphasizes the importance of making strategic decisions when hiring, considering factors such as core skills that need to be preserved in-house and skills that can be outsourced. The conversation also touches on the impact of AI on the hiring process and workforce composition. While AI can streamline certain aspects of recruitment, Malan highlights the limitations of AI in making complex matches between candidates and job requirements. He emphasizes the continued need for human judgment and interaction in assessing candidates beyond their qualifications.

The episode takes a deeper dive into the issue of diversity in the tech industry, acknowledging the underrepresentation of certain groups, particularly women and veterans. Malan suggests practical steps that businesses, including small companies, can take to attract a more diverse workforce. These steps include creating affinity groups within the organization, implementing inclusive practices, and actively promoting diversity in job descriptions and recruitment efforts. By focusing on specific areas where they can make a meaningful impact, businesses can work towards building more diverse and high-performing teams.

As the conversation wraps up, Malan provides tactical insights for small businesses looking to enhance their diversity initiatives. He advises focusing on specific demographic groups that align with the company's location and business goals, rather than trying to create multiple affinity groups with limited resources. By taking practical steps to create a more inclusive and welcoming environment, businesses can attract a wider pool of talent and benefit from the diverse perspectives and ideas that contribute to high-performance teams.

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Dave Sobel delves into the profound question of how advancements in AI technology, such as deep fakes and synthetic voices, are impacting our understanding of truth. To explore this topic, he is joined by Jessica Davis, Editorial Director at Cyber Risk Alliance, who provides valuable insights as a journalist who constantly considers sourcing and truth in her work. They discuss the challenges of verifying information in a world where reality is becoming less knowable due to AI-generated content.

The conversation with Jessica  also touches on the recent revenue declines experienced by managed services providers (MSPs) and the contrasting optimism among small business owners. While MSPs are facing a deceleration in revenue growth, small business owners remain hopeful about the future. The discussion highlights the impact of the post-pandemic IT bubble on MSP revenues and the cautious approach businesses are taking in an election year, leading to a temporary slowdown in projects.

Furthermore, the episode explores the increasing adoption of AI among younger business owners and solution providers, with a focus on generative AI. Jessica shares an anecdote about a pioneering MSP that enlisted high school interns proficient in generative AI to assist with their AI initiatives. This trend reflects a generational shift in the utilization of AI technologies and hints at potential changes in the workforce dynamics within the IT industry.

As the conversation unfolds, the importance of governance frameworks and data validation in the face of AI-generated content is emphasized. The episode concludes with a preview of an upcoming interview with Hugo Milan, discussing the concept of a mixed labor strategy in hiring and the challenges of AI applications in the recruiting space. Listeners are encouraged to engage with the content and support the show to help drive discussions on the evolving landscape of technology and business.

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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 resources. This highlights the importance of secure development practices in AI, especially in sectors like healthcare that are prime targets for cybercriminals. Additionally, a new ransomware group called Hunters International is targeting IT workers with a malware called Sharp Rhino, posing significant risks to organizations.

The Pentagon has proposed CMMC rules for contractors, incorporating Cybersecurity Maturity Model Certification requirements into the contracting process. Contractors will need to self-assess or obtain third-party certification based on data sensitivity, with compliance required at the time of contract award. ConnectWise has committed to assisting providers in achieving CMMC Level 2 compliance by 2025, emphasizing the need for coordination between providers and vendors in meeting compliance standards.

Lastly, Apple has opened NFC access to third-party developers in iOS 18.1, allowing them to utilize the iPhone's secure element for various applications like payments, transit fares, and IDs. This decision follows a legal agreement with European commissioners to comply with EU regulations. By expanding NFC technology on its devices, Apple is creating new opportunities for developers to deliver solutions to customers, enhancing the device's functionality and potential use cases.

Three things to know today

00:00 Massive Data Breach at National Public Data Exposes Billions of Records, Highlights Risks of Data Aggregation

04:32 Pentagon Proposes CMMC Rules for Contractors; ConnectWise Supports MSPs in Achieving Compliance

06:20 Apple Complies with EU Regulations, Grants NFC Secure Element Access to Developers in iOS 18.1

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The U.S. job market is currently showing a mix of signals, indicating a cooling trend while still maintaining strength post-pandemic. In April, employers added 175,000 jobs, leading to moderate and steady hiring, with the unemployment rate slightly increasing to 3.9%. Despite this uptick, the job market remains stronger than pre-pandemic levels, with the ratio of job openings to unemployed workers still higher than before the pandemic. This suggests that the labor market is tight, with pay gains for job switchers surpassing those who stay in their current roles. Additionally, the tech hiring market displayed signs of recovery in April, with IT unemployment dropping to 2.8% and technology companies adding nearly 4,300 workers. This indicates a positive trend in the tech sector, with strong demand for skilled IT workers and IT spending projected to reach $5.1 trillion this year. Overall, while there are indications of cooling in the job market, the U.S. job market remains robust post-pandemic, offering growth opportunities in various sectors. 

Microsoft CEO Satya Nadella championed a security-first strategy in an employee memo. The company is overhauling its security processes to prioritize secure design, default security, and secure operations. This initiative aims to enhance security measures after a series of high-profile attacks, emphasizing the importance of technical and operational rigor. 
 

Three things to know today

00:00 US Job Market Shows Signs of Cooling Yet Remains Strong Post-Pandemic  

06:13 Microsoft's Security Overhaul: CEO Satya Nadella Champions 'Security First' Strategy in Employee Memo

08:32 Canalys Forecasts: 60% of PCs to Be AI-Capable by 2027, Boosting Opportunities

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Two things to know today

• How customers buy, how help desks work, and exec investment

https://techaisle.com/blog/443-business-outcomes-based-customer-success-driven-pricing-is-imminent-ready-or-not

https://www.slideshare.net/comptia/help-desk-trends

https://www.ciodive.com/news/coronavirus-economy-job-role-change/595373/

AND

• Microsoft’s new industry specific clouds

https://www.ciodive.com/news/microsoft-industry-specific-cloud/595586/

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Three things to know today

• Broadband regulation moves

https://www.axios.com/newsletters/axios-login-1475df0a-b77b-466e-85ca-8364d70adcd9.html?chunk=0&utm_term=emshare#story0

https://www.theverge.com/2021/2/19/22291469/comcast-delays-northeast-data-cap-rollout-2022

https://www.theverge.com/2021/2/22/22292074/5g-nationwide-verizon-att-tmobile-c-band

• Facebook changes course in Australia

https://www.bbc.com/news/world-australia-56165015

https://arstechnica.com/tech-policy/2021/02/microsoft-sides-with-european-news-sites-in-their-battle-with-google/

https://www.businessinsider.com/mark-zuckerberg-alex-jones-facebook-ban-soften-lenient-report-2021-2

AND

• The 25x25 initiative gets moving

https://www.marketwatch.com/story/facebook-twitter-bank-of-america-and-other-large-companies-pledge-to-hire-diverse-leaders-11613759174

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Two things to know today

• Regulation – privacy, right to repair, and gig workers

https://www.wsj.com/articles/states-push-internet-privacy-rules-in-lieu-of-federal-standards-11613644200?mod=djemalertNEWS

https://www.protocol.com/Policy/virginia-maryland-washington-big-tech

https://www.washingtonpost.com/technology/2021/02/18/amazon-facebook-google-maryland-lawsuit-tax/

https://www.vice.com/en/article/jgqk38/the-right-to-repair-movement-is-poised-to-explode-in-2021

https://www.wired.com/story/frances-new-tech-repairability-index-is-a-big-deal/

https://www.bloomberg.com/news/features/2021-02-17/gig-economy-coming-for-millions-of-u-s-jobs-after-california-s-uber-lyft-vote?sref=ExbtjcSG

https://www.theverge.com/2021/2/19/22291580/prop-22-instacart-doordash-uber-lyft-postmates-grubhub-price-hike

https://www.wsj.com/articles/restaurants-and-startups-try-to-outrun-uber-eats-and-doordash-11613903401?mod=rss_Technology

AND

• New data on the threat report

https://www.nuspire.com/q4-2020-threat-report/

https://arstechnica.com/information-technology/2021/02/new-malware-found-on-30000-macs-has-security-pros-stumped/

https://www.ciodive.com/news/bls-report-IT-job-demand/595409/

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I’ve been thinking a lot about marketing again. I didn’t really want to – but a Patreon asked, and look, that’s the best way to get my attention. Ask a question and I can’t stop thinking about it.

Here’s the basic premise. If IT services has been talking about “sucking” at sales and marketing for 15… 20… years now, how come no one has fixed this?

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An interview with Kevin Urrutia, an Entreprenuer with a tech background, selling services. Not IT services, but home services. What can we learn from the parallels in that space?

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Three things to know today

• The FCC works on maps

https://www.vice.com/en/article/epd7yj/america-is-finally-fixing-its-crappy-broadband-availability-maps

• This week in SolarWinds

https://www.theverge.com/2021/2/18/22288961/solarwinds-hack-100-companies-9-federal-agencies

https://www.cnn.com/2021/02/17/politics/solarwinds-hack-investigation/index.html

https://www.crn.com/news/security/solarwinds-hacked-from-inside-u-s-100-orgs-compromised?itc=refresh

https://www.scmagazine.com/home/security-news/network-security/internet-exposed-orion-servers-drop-25-since-solarwinds-breaches-announced/

https://globalnews.ca/video/7641101/fireeye-ceo-says-solarwinds-hack-was-found-after-security-staff-noticed-issue-with-employee-account

https://www.euroweeklynews.com/2021/02/15/microsoft-president-says-solarwinds-hack-most-sophisticated-ever/

AND

• Australian regulations on news

https://www.theverge.com/2021/2/17/22287776/facebook-block-news-australia-regulation-media-link-sharing

https://www.theverge.com/2021/2/17/22288256/facebook-australia-news-ban-governmental-agency-accounts

https://www.abc.net.au/news/2021-02-18/bom-health-authorities-betoota-caught-in-facebook-news-ban/13166394?section=technology

https://www.axios.com/tech-coughs-up-money-for-news-as-regulatory-threats-loom-f7feccc2-a097-437c-918a-7de0c6be3f49.html?utm_source=newsletter&utm_medium=email&utm_campaign=newsletter_axioslogin&stream=top

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