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Channel Brief: Canalys Releases Cloud Market Report, New Deepfake Research and More

It's another Monday - but the countdown to the U.S. Memorial Day weekend and the unofficial start of summer is on!

Today, we're looking at rumors that Snowflake is in talks to acquire Reka AI to expand its generative AI capabilities. Bloomberg is careful to say that these talks may or may not result in a deal, but we're keeping an eye on this one.

Canalys released its Q1 2024 Global Cloud Market report, which revealed worldwide cloud infrastructure services expenditure grew by 21% year-over-year in Q1 2024 to reach US$79.8 billion, an increase of US$13.4 billion. According to Canalys, the top three cloud providers - AWS, Microsoft Azure and Google Cloud - collectively grew by 24%, accounting for 66% of total spending. All three hyperscalers experienced a growth rate surge, Canalys said, as enterprise cloud spending accelerated. However, Microsoft outpaced both AWS and Google Cloud. Despite holding the largest market share, AWS faces increasing competition from its fast-growing competitors. In May 2024, the company announced the departure of CEO Adam Selipsky after three years in the role.  

A new 'operator VC' fund has launched and is already closing in on $10 million raised. OpenseedVC, as TechCrunch reported, is applying the operator VC model in Africa and Europe.

And there's more below, including new deepfake research from ISMS.online. Our own Jessica C. Davis is at Dell Technologies World this week, and we'll be bringing you news and updates from there, too. Hope you have a great week!

Are you an MSP that partners with public cloud service providers? It's time for you to step up and get recognized. ChannelE2E opened its annual Top 250 Public Cloud MSPs survey. This is the survey that we use to create our annual Top 250 Public Cloud MSPs ranked list. Here's the link to participate.

And don't forget to submit your idea for a session at the upcoming MSSP Alert Live event! MSSP Alert Live is the premiere cybersecurity event for MSPs and MSSPs. (You can submit your proposal here.) We’re looking for speakers like you who want to share insights and experience and wisdom with peers.

Please check out our industry Mergers and Acquisitions list, updated daily, with an archive that goes all the way back to 2020. Check out the whole thing here. Scroll down for a quick view of upcoming in-person channel and MSP events at the bottom of this post (while we spiff up our industry calendar behind the scenes. It will return!)

And please send your news tips, information, and industry chatter to senior managing editor [email protected].

Today’s Tech, Channel and MSP News

1. MSSP Alert Security Update: Have you checked out our newest feature, the MSSP Alert Security Update? We know that cybersecurity and protecting end customer companies from cybercrime has grown into one of the most important trends for managed service providers. Especially in 2024, managed service providers are stepping up to help their end customers protect their IT estates from cybercriminals and cybersecurity attacks. With that in mind, we're bringing you a weekly assortment of stories from our affiliate site, MSSP Alert, that focus on some of the top news, trends and insights in cybersecurity for service providers. Here's last week's edition and the newest updates that posted this morning.

2. Canalys Global Cloud Spending Report, Q1 2024: Canalys Global Cloud Market Report revealed worldwide cloud infrastructure services expenditure grew by 21% year-over-year in Q1 2024 to reach US$79.8 billion, an increase of US$13.4 billion. According to Canalys, the top three cloud providers - AWS, Microsoft Azure and Google Cloud - collectively grew by 24%, accounting for 66% of total spending. All three hyperscalers experienced a growth rate surge, Canalys said, as enterprise cloud spending accelerated. However, Microsoft outpaced both AWS and Google Cloud. Despite holding the largest market share, AWS faces increasing competition from its fast-growing competitors. In May 2024, the company announced the departure of CEO Adam Selipsky after three years in the role.  

3. OpenseedVC: A new 'operator VC,' meaning it's run by one or more former startup founders, is launching in Europe and Africa. As TechCrunch reported, OpenseedVC is applying the operator VC model in Africa and Europe with a new fund. The firm, which plans to be the first check in startups launched by operators across both regions, has reached the first close of its $10 million angel-style early-stage fund, according to TechCrunch. General partner Maria Rotilu said “the first close is well into the millions and fundraising is still in progress” without specifying how much. OpenseedVC hopes to reach the final close within a year, she added.

4. Snowflake to Acquire Reka AI?: Bloomberg and CRN are reporting that Snowflake may be in talks to acquire Reka AI for over $1 billion to expand its ability to offer generative AI. Reka AI, which makes large language models (LLMs), was founded in 2022 by researchers from Alphabet Inc.’s Google and Meta Platforms Inc. It was valued at about $300 million in a 2023 investment round, which included funding from Snowflake’s venture arm, according to a Reuters report. Snowflake makes tools to organize and analyze data in the cloud and, as Bloomberg reported, sees generative AI as a business accelerator. Snowflake released its own large language model, Arctic, in April. The company also lets customers use third-party AI models, such as those from Reka, on their data within Snowflake.

5. New Deepfake Research: Deepfakes are now the second most common cybersecurity incident encountered by businesses in the past year, trailing only behind malware infections, according to research by compliance platform ISMS.online. Over one-third of businesses across the U.S. have experienced a deepfake security incident in the last 12 months, the research showed. ISMS.online’s State of Information Security report surveyed 518 people in the US who work in information security across 10 sectors including technology, manufacturing, education, energy and utilities and healthcare. Key findings from the survey included the fact that 35% of U.S. businesses have experienced a deepfake security incident in the last 12 months.

MSSP Alert Live Call for Papers and Top 250 Public Cloud MSPs

MSSP Alert Live CFP: Are you a thought leader in managed services or managed security services, or do you have a unique approach to an important topic that could help other MSPs or MSSPs? We’re looking for speakers like you to be part of our MSSP Alert Live program for 2024. MSSP Alert Live, the premiere cybersecurity event for MSPs and MSSPs, has opened its call for papers. (You can submit yours here.) We’re looking for speakers like you who want to share insights and experience and wisdom with peers.

Time for Cloud MSPs to get recognized: Are you an MSP that works with public cloud providers? It’s time to get recognized for your work. ChannelE2E opened its annual survey for the Top 250 Public Cloud MSPs. If your MSP practice includes working with a public cloud provider, this survey is for you. Participation is free. The survey closes in June. Submit your MSP today here for recognition! Our list will be released this summer.

In-Person MSP and Channel Partner Events

  1. MSP GeekCon - May 19-21, Rosen Plaza, Orlando, Florida
  2. Dell Technologies World - May 20-May 23, The Venetian, Las Vegas
  3. IT Nation Secure, (hosted by ConnectWise) June 3-5, 2024, Gaylord Palms Resort & Convention Center, Orlando, Florida
  4. Pax8 Beyond, June 9-11, 2024, Gaylord Rockies Convention Center, Denver, Colorado
  5. FLOWAutomation Conference (hosted by Rewst) – June 17-June 19, The Renaissance Tampa International Plaza Hotel, Tampa, Florida
  6. CompTIA ChannelCon, July 30-August 1, 2024, Atlanta, Georgia, Hyatt Regency Atlanta