Future of Cloud Pricing, AI Models, Microsoft 365 Copilot, and Tech Policy Impacts on MSPs

Business of Tech: Daily 10-Minute IT Services Insights

Host Dave Sobel dives into the evolving landscape of cloud pricing and AI models, highlighting the significant shifts that are reshaping customer expectations. With rising cloud costs becoming a pressing concern for many organizations, Sobel discusses a report indicating that over a third of companies feel their transition to the cloud has not delivered the promised cost-effectiveness, while more than half are experiencing increasing bills. This backdrop sets the stage for a conversation about innovative pricing models, such as Zendesk's new AI pay-for-performance strategy, which charges customers only when its AI successfully resolves issues without human intervention.

Joining Sobel is TC Doyle, a seasoned technology and channel expert, who provides insights into the historical context of cloud pricing. Doyle notes that while cloud costs have generally decreased in the past, the reality of rising expenses is now becoming apparent due to factors like increased energy costs, labor shortages, and heightened cybersecurity demands. He emphasizes the opportunity for solution providers to focus on cloud cost management, helping organizations optimize their cloud usage and avoid unnecessary expenses.

The discussion then shifts to the mixed reception of Microsoft's AI assistant, 365 Copilot, which has seen low adoption rates among Microsoft 365 users. Doyle explains that customers are hesitant to embrace AI solutions when the value proposition is unclear and the technology does not seamlessly integrate with existing workflows. The conversation highlights the importance of well-defined use cases for AI, as successful implementations often stem from a clear understanding of how AI can enhance specific business outcomes.

As the episode progresses, Sobel and Doyle explore the implications of recent political developments on technology policy, particularly in the wake of the presidential debate. They analyze the differing approaches of the Republican and Democratic parties regarding regulation, AI, and cybersecurity, emphasizing the potential impact on managed service providers (MSPs). The conversation underscores the need for clarity and consistency in regulatory frameworks to enable service providers to navigate the complexities of the evolving tech landscape effectively.

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