Channel Brief: Small Business Eyes IT Spending, Embraces AI; Palo Alto Networks Sees Competitive Opening After CrowdStrike Outage

While managed service providers have reported slower growth in revenues the past few quarters, American Express’ Amex Trendex Small Business Edition report found that 90% of small businesses surveyed are optimistic about the future – they believe their companies will achieve their goals this year.

When asked how they would spend an extra $15,000 to $100,000 on their businesses, these small businesses citied marketing (33% and 35%) and tech updates such as IT and software (30% and 34%) and new products or services (29% and 33%).

However, small businesses, particularly the younger ones, are careful with the money they spend on the business. Amex Trendex found that 32% of Millennials and Gen-Z business owners said they always or often turn down potential business or growth opportunities because they are unsure their cash flow can support it – double the rate of Gen-X and Boomer respondents (16%).

Millennial and Gen-Z respondents are also embracing AI with 59% using it in their businesses compared with 34% of Gen-X and Baby Boomers. Millennials and Gen-Z were more likely to use AI for automating routine tasks and cash flow analytics while Gen-X and Baby Boomers were more likely to use it for chatbots and virtual assistants, fraud protection, and workforce management.

Across all respondents, the most common AI use cases were analyzing customer data (39%), and chatbots and virtual assistants (39%) and content creation (33%). The report also found that businesses believe AI give them a competitive edge. A full 48% of those using AI feel their company is more prepared than competitors when it comes to keeping up with trends and changing customer preferences, compared to 32% of businesses that do not use AI.

Food for thought for MSPs targeting these SMBs as clients and potentially creating AI businesses services to sell through to these companies.

Here’s a wrap up of what else MSPs, MSSPs, TSPs and other channel partners need to know today.

Today’s Tech, Channel and MSP News

1. Strong cybersecurity sales ahead: Palo Alto Networks is forecasting fiscal 2025 revenue and profit above Wall Street estimates, pointing to growing demand for cybersecurity products and services. The company also said that beginning this quarter it will provide annual recurring revenue as a key financial.

2. The Crowdstrike outage as a competitive tool: What’s more, Palo Alto Networks CEO Nikesh Arora said during the company’s earnings call that the recent Crowdstrike outage has spurred cybersecurity customers to reevaluate their options. “They have initiated conversations with us around extended detection and response (XDR) and XSIAM..”

3. Reining in customer cloud costs - Vantage is launching a new cloud cost management solution for MSPs that allows partners to centrally manage Vantage accounts for their end customers from a single portal. It provides MSPs with a single pane of glass across customers and cloud infrastructure providers, as well as the ability to go deeper with granular visibility and flexible reporting and billing options to meet the unique needs of each client. Vantage for MSPs integrates with 15+ cloud infrastructure providers and offers individualized client reporting and billing/re-rating options.

4. Disti partnership: Climb Channel Solutions, an international specialty technology distributor and wholly owned subsidiary of Climb Global Solutions, Inc. will partner with MSP360, a backup and IT management software vendor.

5. SOC of the future: CarbonHelix, an MSSP, and Intezer, a startup that provides AI-driven SOC automation, have forged a new strategic partnership by integrating the companies’ SOC technologies to help improve cybersecurity and allay the negative impact of the cybersecurity talent shortage.

6. Putting AI in networking: Juniper Networks is infusing AI to networking with the launch of a blueprint for accelerating AI-native networking platform adoption across Juniper’s entire secure networking portfolio. Juniper Networks said the launch will bring AI-Native Networking adoption within reach of partners and help to drive an optimized and autonomous experience-first network.

7. Telecom, service provider M&A C3 Complete, a provider of technology, telecom, and information security services, will acquire communication services provider TRACI.net.

8. More M&A: Technology consulting firm ePlus inc. has acquired Bailiwick Services, a provider of professional and managed services. Bailiwick specializes in serving enterprise customers that operate large store, branch, and campus footprints predominantly in the retail, financial services, restaurant, and hospitality vertical markets.

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