Kaseya's four-step journey to changing unit economics for MSPs gathers pace. Janet Yellen says lowering carbon emissions is the 'single greatest economic opportunity' of the century. Some parts of the US economy are struggling, but no recession is expected. Plus, an OpEd explores ten points about post-lockdown economics and its impact on various economic aspects.
Sources:
https://www.itpro.com/security/kaseyas-four-step-journey-to-changing-unit-economics-for-msps-gathers-pace
https://fortune.com/2024/07/27/janet-yellen-lowering-carbon-emissions-climate-change-greatest-economic-opportunity/
https://www.fibre2fashion.com/news/textiles-policy-news/some-parts-of-us-economy-struggling-no-recession-oxford-economics-296955-newsdetails.htm
https://www.eurasiareview.com/28072024-ten-points-about-post-lockdown-economics-oped/
Outline:
(00:00:00) Introduction
(00:00:46) Kaseya’s four-step journey to “changing unit economics for MSPs” gathers pace
(00:03:05) Janet Yellen says lowering carbon emissions is the 'single greatest economic opportunity' of the century
(00:06:03) Some parts of US economy struggling; no recession: Oxford Economics
(00:08:19) Ten Points About Post-Lockdown Economics
Simply Economics
Kaseya Revolutionizes MSP Economics, Yellen’s Climate Opportunity, US Economy Outlook
Kaseya's four-step journey to changing unit economics for MSPs gathers pace. Janet Yellen says lowering carbon emissions is the 'single greatest economic opportunity' of the century. Some parts of the US economy are struggling, but no recession is expected. Plus, an OpEd explores ten points about post-lockdown economics and its impact on various economic aspects.Sources:https://www.itpro.com/security/kaseyas-four-step-journey-to-changing-unit-economics-for-msps-gathers-pacehttps://fortune.com/2024/07/27/janet-yellen-lowering-carbon-emissions-climate-change-greatest-economic-opportunity/https://www.fibre2fashion.com/news/textiles-policy-news/some-parts-of-us-economy-struggling-no-recession-oxford-economics-296955-newsdetails.htmhttps://www.eurasiareview.com/28072024-ten-points-about-post-lockdown-economics-oped/Outline:(00:00:00) Introduction(00:00:46) Kaseya’s four-step journey to “changing unit economics for MSPs” gathers pace(00:03:05) Janet Yellen says lowering carbon emissions is the 'single greatest economic opportunity' of the century(00:06:03) Some parts of US economy struggling; no recession: Oxford Economics(00:08:19) Ten Points About Post-Lockdown Economics
- Duration:
- 11m
- Broadcast on:
- 28 Jul 2024
- Audio Format:
- mp3
Good morning and welcome to Simply Economics. It's Sunday, July 28th. On today's show, Qaseya's four-step journey to changing unit economics for MSPs gathers pace and Janet Yellen says lowering carbon emissions is the single greatest economic opportunity of the century. Plus, we'll take a look at some parts of the U.S. economy struggling, but no recession according to Oxford economics. This coverage and more, up next. I'm David, and you're listening to Simply Economics. We start off with some news from the world of IT management software. Qaseya, a leading provider for managed service providers, or MSPs, has seen tremendous adoption of its new Qaseya 365 platform since launching it just 10 weeks ago. Over 4,000 MSP partners have already signed up, with over 5 million endpoints now managed through the all-in-one automation, backup, and security subscription service. Here with more details is our technology correspondent. So what is driving this rapid adoption of Qaseya 365 by MSPs? Qaseya CEO Fred Vakala says Qaseya 365 is just the first step in a four-part plan to fundamentally change the economics for MSPs and make their businesses more profitable. Most MSPs today only achieve profit margins of around 10%, compared to over 30% for other professional services firms that serve small and medium businesses, like legal and accounting providers. Qaseya believes this is unsustainable and that the economic model for MSPs is broken. So how exactly will Qaseya's initiatives help level the playing field financially for MSPs and improve their profitability? By providing an integrated platform that automates and streamlines many core MSPs services at an attractive price point, Qaseya 365 aims to significantly reduce MSPs costs while expanding their service capabilities. This should allow MSPs to operate more efficiently and either increase their margins or become more price competitive. The strong early adoption suggests MSPs are eager for solutions to improve their profitability. And this is just the first part of Qaseya's four-step plan to overhaul the MSP economic model. What other initiatives does the company have in the pipeline? Vakala didn't reveal specifics about the next three phases, but said the overall goal was to get MSP profit margins up to the 30 to 35 percent range that other professional services achieve. He sees this as essential for the health of the MSP industry and its ability to effectively serve and secure small and medium business IT environments. With the constant evolution of technology and the threat landscape, MSPs will likely need to keep investing in their capabilities. The rapid adoption of Qaseya 365 certainly seems to validate the demand for new economic approaches in the MSP market. It will be interesting to see what Qaseya announces next and whether it can succeed in boosting MSP profitability to levels on par with other professional services industries. Speaking of economic opportunities, U.S. Treasury Secretary Janet Yellen traveled to the mouth of the Amazon River this weekend, pitching the idea that fighting climate change would bolster economic growth in the region and across the globe. Yellen spoke in Bellum, Brazil after meeting with finance ministers from the Amazon region. She said the shift required to lower carbon emissions is the single greatest economic opportunity of the 21st century. For more on this, we're joined by our correspondent. What did Yellen say about the investment needed to make this shift? According to Yellen, an annual investment of $3 trillion through 2050 is required to lower carbon emissions. However, she emphasized that this investment can be leveraged to support pathways to sustainable and inclusive growth, including for countries that have historically received less investment. It's a significant sum, but Yellen frames it as an economic opportunity rather than just a cost. And this speech was part of a larger initiative, correct? Can you tell us more about that? Yes, the event was organized by the Inter-American Development Bank as part of its Amazonia Forever Initiative. This initiative seeks to support carbon reduction, wildlife protection, and biodiversity while protecting jobs and economic activity across eight South South American countries. It's a multi-country approach, which is part of a broader shift pushed by Yellen at global development banks. Traditionally, these banks have focused on single country development efforts. Yellen also announced another program, While in Brazil. What can you tell us about that? Yellen announced the launch of the Amazon Region Initiative Against Illicit Finance. This program aims to disrupt the financing of criminal activity that causes environmental or wildlife damage in the region. The Amazon has seen an alarming degree of deforestation from agricultural expansion and logging, which threatens its capacity to absorb carbon dioxide, a key greenhouse gas. Combating illicit finance is seen as one way to address this issue. And Bellom, where Yellen gave this speech, has a significant role to play in the future of climate discussions, right? That's right. Bellom, known as the Gateway to the Amazon, is scheduled to host the United Nations Annual Conference on Climate in 2025, known as COP30. So in many ways, Yellen's visit and speech there helps set the stage for those critical discussions and underscores the role the Amazon Region will play in global efforts to combat climate change. Thanks for that report on Treasury Secretary Yellen's visit to Brazil and her comments on climate change and economic growth. Shifting our focus to the U.S. economy, there are growing concerns, with certain sectors like manufacturing showing signs of struggle. However, a new report from Oxford Economics suggests that worries about the American consumer may be overblown even if some vulnerabilities persist. For more, we're joined by our economics correspondent. So what can you tell us about the latest findings from Oxford Economics? The key takeaway is that a slowdown in inflation is expected to boost real disposable income and consumer spending while also reducing the risk of a significant uptick in delinquency rates. We saw this play out in the second quarter, where weaker inflation gains translated into stronger monthly increases in real income. As a result, consumer spending rebounded, even as overall sentiment deteriorated. Oxford Economics Project's consumer spending will rise 2 percent on an annualized basis in Q2, outpacing the growth in the first quarter. There has been an uptick in the unemployment rate recently. Is that a red flag that the labor market is in trouble? Interestingly, Oxford Economics doesn't see the recent rise in joblessness as a major warning sign at this point. Their analysis shows that more than half of the increase since the beginning of the year is due to growth in the labor supply rather than job losses. While labor demand is cooling, companies aren't engaging in large-scale layoffs. This reduces the chances of a negative feedback loop where rising unemployment leads to income losses, reduced spending, and further job cuts. And what about the overall risks of a recession? Have those increased? According to Oxford Economics, the near-term recession risks did not change significantly in June compared to the previous month, remaining relatively low. The main areas of weakness are consumer sentiment and building permits, but neither are seen as indicators of an impending downturn at this stage. Although while there are certainly challenges in parts of the economy, the report suggests the U.S. consumer remains fairly resilient for now. Thanks for that reassuring analysis, even as uncertainty persists. Now let's take a step back and examine the bigger picture. The economic lockdowns of March 2020 sent shockwaves through the global economy. The very core of economic activity, trade, investment, marketing, was suddenly put on hold in an attempt to combat the spread of COVID-19. But more than two years later, the long-term impacts are becoming clearer. Here to discuss is our economics correspondent, Abby. So what are some of the key takeaways about the state of the post-lockdown economy? Well, David, there are several important points to highlight. First, despite talk of a strong job market recovery, labor force participation and employment to population ratios still remain below pre-pandemic levels. Whether due to early retirements, disabilities, or general demoralization, the workforce has not fully bounced back. Second, while government stimulus checks provided temporary relief, much of those gains were subsequently eroded by high inflation. That's an important point about inflation. There's been a lot of focus on nominal figures like retail sales and factory orders being up. But those numbers can be misleading, right? Exactly. Most of those data reports are not adjusted for inflation. So in an inflationary environment, higher nominal spending doesn't necessarily mean the economy is producing or consuming more actual goods and services. When you factor in inflation, the picture looks quite different. Economists who have crunched the numbers, even using the arguably understated CPI, show that real retail sales and factory orders have not actually increased. So despite the conventional narrative that the economy has grown moderately since recovering from a brief lockdown-induced recession in 2020, you're saying the data may not support that story. There are good reasons to be skeptical. The rosy picture relies on some questionable methodological choices, like the inclusion of government spending in GDP and the use of an inflation adjustment even lower than the already low CPI. A deeper look at the data suggests the lockdowns may have done lasting economic damage that is not so quickly or easily reversed. So in other words, the beautiful lockdown narrative that the economy could simply be paused and restarted with no net loss is likely far too optimistic. The post-lockdown economic picture is more complicated and in many ways concerning. Thanks Abby for this enlightening if sobering analysis, and on that note, we wrap up our stories for today. Thanks for listening to Simply Economics, we'll see you back here tomorrow. [Music] [BLANK_AUDIO]