#289 Empowering SMBs in the Tech Era: AI, IoT, and Cybersecurity Strategies with Nick Lorizio

0:00:02 - Mehmet
Hello and welcome back to a new episode of the CTO Show with Mehmet. Today I'm very pleased to have with me joining from the east coast, from the United States. Nick, thank you very much for being with me today on the show. The way I love to do it is usually I keep it to my guests to do themself, so the floor is yours. 

0:00:19 - Nick
Absolutely. Thank you so much. It's a pleasure to meet you and speak with you this morning. I'm sure it's a different time zone over in Dubai. I'd love to learn more about what it's like over there. It seems like a fascinating city. I've never been. My name is Nick Lorizio and I'm the CEO and founder of astute-technologistscom. We have our own unique AI tool, ai advisor, astute advisor, as well as astute connect, which is our IP and intellectual property surrounding a new platform and a new way to connect the buyer and supplier on the IT side, thinking like a modern service delivery model, much like a DoorDash or Grubhub. 

0:00:58 - Mehmet
That's great, of course. Hopefully one day is what I tell all my guests to meet you in person. Either here you come to the spot of the world, or, when the chance comes, and I go back to the United States. If you are from the United States and I have a lot of guests from there, we have a lot to cover today with you. Nick, I would love to start from an area where you focus too much on, which is the small medium businesses. This area is a little bit close to my heart because I think it needs a lot of attention and it's underrated, I would say. The first question is how do you think small and medium-sized businesses can leverage the technology to compete with larger companies? 

0:01:53 - Nick
Absolutely. Smbs are the and I hate acronyms, it's confusing, not everybody might understand them. I try and use them as little as possible. Smbs small medium-sized businesses are the backbone of the United States. They always have been. That is where innovation occurs and happens. They're more nimble and able to adapt quickly to change. They might not have the resources that large enterprises have to combat the growing threat of cyberattacks. I see protecting them as my core mission attitude and our core mission attitude. Really, what I would like to do is build out a franchisable model or system that can service this market at rapid scale, first across the United States and then looking at other markets such as Dubai. 

0:02:47 - Mehmet
That's fantastic. I just want to highlight one thing. I think it's common and again I'm with you. I don't like acronyms sometimes too much, except that they make the lives easy. In definition, these are the companies that they have certain number of employees or they do a certain or less than certain number of revenue per year. Here, when it comes to technology, what do you think are the most common challenges these companies they face? How do you aim to help them to overcome them? Plus, especially, we are in an age where we talk about very, very advanced stuff like AI, machine learning and all this. How do you think you can help this sector of the business Doing that? Also, if you allow me, that in all statistics and this applies to the US and it applies even to other parts of the world as much as a research that these companies, the small medium businesses. They form a large chunk of the economy. In some places they are more than 80, 85% of the economy comes from these SMBs or small medium businesses. 

0:04:11 - Nick
Absolutely. That's where a lot of people start their career professions. Many of them are privately owned and operated, so they all run a little bit differently. When you look at their tech stack, I see the biggest challenge here is disparate tools and systems. You might have a network stack of five different switch partners. What happens is you have competing forces and competing salespeople for that business and that's really a legacy model. We need to roll out some standardization. 

Looking at the different aspects of the IT stack here, the technical stack when I look at partnering with Cisco, cisco, maraki for simplicity, standardizing those across the board. 

Looking at tools like Microsoft 365 and enable for the front end. Looking at backend database partners like Oracle, strategically aligning myself with these vendors for these specific factors or factions of the IT stack is going to be a key element so that we don't have competing forces within my own company Really scaling that out and building it from the ground up, as opposed to what private equity has done, which is now it's come in after the pandemic with a lot of the project work stopping and they're buying them up. They're buying I've worked in the M&A space, mergers and acquisitions and they're buying up these 20, 30-year-old MSPs left and right, and then they're consolidating and folding them and bringing them to an on-platform service model, which is kind of similar to what I'm saying. What I'm saying is let's come in from the ground up, let's standardize, let's roll it out, let's look at new markets and new cities and new frontiers in the United States, where people have relocated in recent years, and let's build this thing out. 

0:06:04 - Mehmet
That's perfect, nick, but do you see that actually the owners of these businesses are understanding the things that we share? And why do you think that Now? Of course, we do hear on the show and I do this also outside of the show as part of my work as an advisor and consultant to some companies we try a lot to tell them about the benefits, whether it's a little bit an now overused world, which is the digital transformation, for example, and sometimes we talk about cybersecurity and sometimes and the answer is always that comes to me like, yeah, this is only for the big guys. What should I do with AI? Why do I need cybersecurity? What is this digital transformation going to change for me? So how do you deal with such conversations, nick? I'm very curious to know. 

0:06:58 - Nick
Absolutely so. What I like to say is it's not really a threat, it's a change in culture, and that's what I always said with digital transformation and remote working, and it's amazing how fast the pitch changes. For a long time, it was a race to the bottom. I'm going to have five different vendors compete for my service. So really, what we're saying here is it's no longer a race to the bottom. What's going to happen is you're going to have a massive 80% increase in time. Your employees are going to have a lot more efficiency to think creative, innovate and focus on that R&D budget. So we want to increase that messaging of hey, it's not a threat to your business. It's actually going to make you more nimble. It's going to allow you to have more free time to simplify those automated, redundant tasks of data entry and so on, so that you can actually innovate and create new solutions, products and services for your market. 

0:07:54 - Mehmet
And I think it makes a lot more sense because usually they don't have the enough resources, especially when it comes to anything that can help them increase the revenue, it can help them increase their number of customers, and so on. 

So, because you touch on the automation, for example and this is also something that last year, in 2023, I was doing a lot to show that automation might be needed more by small medium businesses than, of course, the large enterprise they needed. But these guys, they figured it out and they started to put budget for automating their processes and procedures. But in the SMB world, that makes more sense, honestly, because you want to do less with more always, which is something I believe they need really to invest in. Now, one of the things to close that on the small medium business part and shift to something else is about they are usually worried or, let's say, they always try to find out how, whatever investment they're going to do, it would be immediate. So how? But do you think this is right? Like, how do you think these companies should approach investing in new technologies, considering maybe and I can understand this again and to what we were just saying that they might have limited budget? So how do you approach this how they should approach this in European? 

0:09:33 - Nick
Right. 

So it has to be a SaaS model because when you look at things like the traditional break fix project work that was not sustainable throughout the pandemic or massive crisis like right now, I see cyber attacks as the biggest threat to our nation's security, as well as globally. 

So really, what we need to do is prepare for, not if it's going to happen to you. It's when it's going to happen to you and when you get attacked and your operations could be potentially shut down. So I see a large focus on prevention, not just remediation, but we need to prevent and monitor 24 seven for the ongoing threat of cyber attacks so that your operations are not at risk. It's about building out a SaaS model budget on a monthly recurring basis. It's the same fee over a fixed term that you pay, just like you would a rent for an apartment each month. That is going to go towards the SaaS model so that, even though a crisis is happening, you still have this in your budget and your IT partners going to be readily available to service you in the event of a cyber attack. 

0:10:43 - Mehmet
That's great advice, I would say. So now let's like shift gears and talk about AI, right, and I know you like to do, let's call it myth-busting some facts. So what do you think are the biggest misconceptions about AI in the business world? 

0:11:07 - Nick
Yes, I like the truth. The truth is always important here. So we've built out our own AI tool which runs on its own private environment, segregated off of the open source network, and it's really working with whoever owns or the creator of that AI. You want to trust that person. You want to make sure that it's not feeding you information that is inaccurate or misinformation. You want to make sure that it's correct and going. It's in your best interest. So building out a student advisor and engaging with that AI on a regular basis. It's learning from me and it's applying a lot of the same strategies that I've applied to get my business to where it's at today. So I think it's really important to look at the owner or the creator of the AI. Revenue share models are really great, so it's essentially a free tool that you can use. However, I generate money from that revenue share, so it's fine. Yeah, so use a suit advisor, engage with it. It's learned a lot from me. It's in your best interest and don't always trust these random bots and marketing that you see. 

0:12:22 - Mehmet
Yeah, the other day I wrote a friend, you know, because he's into marketing and copywriting, and I showed him, I showed him some of the recently received you know emails and I tell people, look like, use AI smartly, right. So the AI is just a tool and you need to use it really, really smartly, because what I've seen people they're doing is that they just copy paste blind, for example, from something like chat GPT or which is. Look, I use chat GPT on daily basis. I think there's no one else who use chat GPT, and I'm saying this literally. You know. I interact with the tool maybe more than 20 times per day, you know, but at the end of the day, at least you know, I take what I think it's right and I do my reasoning before just relying blindly on the AI. And yeah, so to your point, like we need to be cautious when we use the AI. But do you think that AI can contribute in, like, for example, decision making processes for companies? 

0:13:34 - Nick
Absolutely so. This is where the human element in the ethics portion comes in and that's where you have to look at the creator. So this is where, oh my gosh, you know I have eight adults and two children right, and who am I going to save? So AI does not do a good job at that type of reasoning. So there's always going to be that element of human oversight that needs to be there. 

Now I've refined my tool specifically right, and I always do the analogy of a painter's brush right. That's how I see AI. Right. The work, the output is the property of the owner, the copyright of the owner. But you know, it's an amazing, revolutionary tool that's going to reshape our world. So I think it's fantastic. However, it is important to really note that ethics portion of it. Now, what's great is, since it's learned for me, you know, I've been able to refine and release the second version of my book. I've been able to refine my patent. I've been able to refine and tweak a lot of different things within my business, from the website to how I write emails. You know, a lot of strategies from personal experience that I've had in the past have been applied to my specific tool and what's worked for me in the past. You know will certainly work. 

0:14:52 - Mehmet
Absolutely. Now it's very obvious that AI will become part of the day-to-day operation and it will be part of the way we do our work, whether it's on a personal level or if we are a business owner, or even if we're going to still be part of another company. So how do you think businesses should prepare their workforce for an AI-driven future? And let's say no. One can say no. Ai will not be part of that. 

0:15:35 - Nick
So how we can get prepared, it's going to be a cultural shift, right? Managers are going to have to understand that their employees are going to have a large portion of their time freed up. You're going to have to focus on the relationships with your customers. You're going to have to understand that creative work has re-entered the world. So really, what this is doing is it's automating things like data entry. It's automating things like standardizing, invoicing and really just mundane tasks, so people are going to have extra time on their calendars and it's focusing on the creative work. It's making sure that people stay healthy. You get outside, you go take a walk, you ground yourself. In reality. It's going to be cultural. It's going to be a mindset shift. 

I always use the analogy of people like to be told what to do for the most part, which is interesting to me. So don't worry so much that your staff is going to leave. Don't worry so much that there's going to be widespread panic, especially if people have been sticking with you for a long time. Kind of allow this stuff to be introduced at a steady pace throughout your organization and watch how much magic is really going to take place. It's going to be awesome. We're living in the creator economy, the influencer economy, like Cisco CEO came out and said I want all 60,000 or some odd and employees to now be influencers. So it's really interesting. You're going to see a lot of competition and marketing. You're going to see a lot of new business models and ideas take shape and it's a really exciting time, especially in the United States. 

0:17:19 - Mehmet
Now, that's a good point there. I've seen this famous post from Cisco. But the question here is how we can stay, be unique, right, because if everyone out there is going out and trying to do the same thing and people who follow me knows my own view on trying to be unique, of course I know that we cannot be unique all the time. I know we are, by nature, we like to do what we see other people doing, but still, when it comes to doing a business, or when you go and you say I'm going to be a thought leader, right, so you must be doing something completely different In a sense, not everyone can be like, I don't know, like the Gary Vee or not everyone can be that special guy. I understand, including myself, right, but I'm a little bit skeptical and I'm not skeptical by default that we're going to be just seeing us acting based on some prescripted acts and some prescripted processes and we're going to be very robotic. What do you think about that? 

0:18:45 - Nick
Nick. Well, what makes you you? And that's what's so special about the United States? I see a lot of value in the community. Right, you're seeing this large push for buy local here. This is what's amazing about our country here, and I have an appreciation. I'm actually I have an Italian background, Lorizio, so that's what makes me me. Right, I have an appreciation for that. I'm East Coast, I'm New England, I'm Boston born. I now live in New Hampshire. 

We're known for seafood right, so we have the best seafood right. So there's a uniqueness to the local community and an appreciation for those differences that make us unique. So that's why I'm actually very fascinated with a franchise model. Right, you look at a legacy model like a geek squad which claims to service they went mostly to consumer, but they also service the SMD space but I don't think they do it very well and it's still on an hourly model for much of it and best buy bottom, and they're actually responsible for about $2 billion a year for best buy and revenue, which is pretty, which is a pretty shocking statistic. So if I can just go after some of that market, that's fantastic. I'm understanding that. You know, if I can just design the system and then franchise it out to local owners. There's going to be a little bit of a difference in every market right and how we price and then how we secure and monitor the information in that community that keeps it unique and keeps it the way it's always been. 

0:20:15 - Mehmet
That's yeah, I hope so, nick, I hope so right, and the audience know I'm optimistic and I hope we can always remember. Look, you mentioned some fantastic things about how everything can be given this unique identity part, whether it's like from cultural background, whether from geography background, whether from community background. I love this answer and I wanted people to hear this from you, nick, because I think we need to hear this more. So I couldn't agree more about that part that you just mentioned, because, yeah, so this is what reminds us, as you said, where we're coming from, why we're here, why we're doing these things. 

Now, an area that I know you specialize in and I think I covered what I used to do last year some solo episodes I was just talking to the audience for like short episodes the Internet of Things, right? So, and I know you talk a lot about the Internet of Things, iot you know I gained another acronym, so what are you seeing or like? Let me ask you a different way what are the ways you think IOT, or Internet of Things, is currently transforming traditional industries? 

0:21:44 - Nick
Yeah, absolutely so. Iot when I think of IOT, I think of, like, web 1, web 2, web 3, which is being adopted early already, and that's gonna be the decentralization and the financial aspect, cutting out the intermediary. Seeing a lot of it, it's the use of cryptocurrency, it's. You know, we started out with basic Web 1, and then, you know, we were running and we went to Web 2, where it was a lot of revenue was brought in by advertising and the static kind of pictures on websites and everyone was going to a website. You know what is the point of a website today? You know that's a very interesting topic. You know, hopefully people can read and learn a bit more about my business, but it's so easy today to just spin up a website with the product. 

So I'm seeing the IOT change, particularly around the financial aspect. Right, how we transact business is huge with little oversight. And then, looking at Web 4, looking at that next frontier of, okay, we actually need to capitalize on this thing. It's great that we're living in the Wild West right now, but we need to make a little bit of money here. How are we gonna do that? And then how are we gonna protect these communities and their units as well. You look at AI and what it's even done on the from the CTO's point of view. On things like auto deploy, you know you're able to take configurations of legacy devices and migrate them, you know, in minutes. So it's very crazy. Things are happening very fast. You're not gonna see a lot of value in like hourly billing, right, so it's gonna be keen interest on protecting those facets of business in which it's so unique. 

0:23:44 - Mehmet
Absolutely, and you know how do you think? You know this technology, the internet of things, can allow us to have, like, better practices when it comes to also something like eco-friendly business practices, sustainability and, you know, smart cities and all these things. So how do you think this can contribute? 

0:24:12 - Nick
Yeah, absolutely. I mean, I see a lot of our infrastructure being very dated. A lot of it was developed around the Cold War times. So I see, when I think about sustainability, I think about what's gonna really cause us to come in and update a lot of these legacy systems like our water supply, computer controls, right, like how we're getting our electricity. Those types of things are really need to be protected in our society from external threats. So you know what's gonna drive us to do that? 

It's threats like foreign nation states, right, realizing the impact of having those systems be shut down, what that could do to our society. And movies like leave the world behind, so, which I don't wanna do. I like the world. So you know how can we update these systems to protect ourselves from future attacks from foreign nation states? That's really gonna drive us to make these types of changes, because the reality is is, if our critical infrastructure gets attacked, you know it's gonna be widespread panic for over a hundred million people in major cities, like virtually overnight. So, yeah, we need to protect those assets critically. 

0:25:32 - Mehmet
Absolutely. And this brings me to something which is related to the Internet of Things and again, like I discussed it last year, which is edge computing. Right, so I want the audience to hear it from you, Like why edge computing is something that is different from the traditional computing and you know where are the intersections that happens with the IoT. 

0:26:02 - Nick
Right. Well, with a decentralized workforce and the rise of remote work, we're going to be protecting the laptop. We're going to be protecting the end user, who has multiple devices and is not sitting behind a firewall on an office location. So protecting the edge is critically important. It's looking at where the traffic is coming from, it's identifying that it's, it's looking for abnormalities on the network and inspecting that traffic and trusting that that IT partner to do that, whether it's internal or external. So we need to focus on the edge. That is where our workforce is, that is where our personal devices are. It's on the edge. So how do we lock those down in the event of a breach? And it's? You know, it's simple things like using multifactor authentication, which 85 or 80% of people just opt out of, which is crazy, according to like an IBM study. So you know, we just need to make sure that we're leveraging tools like that, we're enforcing those policies and standardizing across the board. 

0:27:05 - Mehmet
How this will be different than the traditional, because you know people get confused a little bit. They say but this is what the cloud is supposed to do, so how? How this is different from, you know, the cloud, because people thought that cloud allowed the decentralization. So how it's competing is different. 

0:27:25 - Nick
Absolutely. So we're still going to be leveraging the cloud, don't give that misconstrued. So you know, we're going to have data in the cloud or in rerunning our large applications and AI models in the cloud, which that enables us to have our interface and have our our edge laptop, you know, anywhere globally. So, really, what I'd like to say is we need to look at that edge computer in the event of whether it's a physical attack and somebody actually takes the device and gets access to it you know how do we respond and lock it down or whether they get access to it as an entry point to your cloud server. So it's, it's really you know. We need to look at the edge as the main and primary tree to those systems. 

0:28:12 - Mehmet
Yeah, and to your point, Nick, just you know I asked the question on purpose because you know my goal is always to inspire and you know, like, let people think about these answers. So, and now I will try to just like join things together. Cyber security, we mentioned multiple times, right? So, and with with this IOT thing and AI. 

So the thing is and this is kind of a just a follow up of all what we have discussed so far with you, nick so in order to have artificial intelligence, machine learning, you need data, and the data now to Nick's point is generated in a decentralized way where you can be sitting any part in the world, especially after the pandemic, and then you need to secure this data, because without the data, you don't have AI, you don't have machine learning, you don't have all the nice thing that you've seen. And this is why it's extremely important to secure the data and securing the data and you would agree with me, nick, I'm sure it's not only about, you know, having a antivirus and just like simple stuff, like things get so complicated, complicated in our world. And I want to, because you know we are taking now more a holistic approach to this thing I want also to hear from the expert what are like the cyber threats that we are seeing in the age of AI and machine learning and edge computing and internal things? 

0:29:43 - Nick
Right? Well, in order to protect the edge, you really have to have an application sit at the kernel level which sits below the operating system. You need to be able to access and have control over every aspect of that machine. Well, so it's look, it's looking at the supply, everything from the supply chain this was canal and what that did to to the to the world. Right, it's looking at supply chains is protecting every aspect of the business, right down to the hard. Well, and then being able to lock it down and have Absolutely. 

0:30:22 - Mehmet
Now I know you've written a book, nick, yourself, and it's called digitalization the new normal of the post pandemic world. First, like, what are the key takeaways? You know that you hope the readers will get. And you know the other thing that I want to ask you like are we heading to a place where the concept of work in general isn't the same that we used to have it a couple of decades ago? Where are we heading when it comes to future of phone? 

0:31:04 - Nick
We need to be adaptable, we need to be open to change and receptive to it. You're going to see a lot of we actually have a lot of business owners retiring and selling or trying to sell their business to younger generations. Right, we're going to see a workplace that age does not matter. Right, you're going to really it's going to level the playing field here. So you know, those that put the work in are going to get ahead. Right now, it's just like the dot com boom in the late 90s, early 2000s. It's a super exciting time, but be open to it. Be open to change and get ahead of it, otherwise you're going to be left behind. A lot of industries have we've seen digital transformation has taken place in every single industry, from automotive to restaurants and outdoor dining. Like we're amazing creatures, we've adapted to a massive crisis and overcame it. Now we have to look at these new frontiers and be accepting of these tools and how they're going to change the way that we work. 

0:32:10 - Mehmet
I will go back a little bit to AI here, nick. And do you think you know, related to this topic, do you think that AI and you know there's a lot of talks about autonomous bots, and you know these systems that you give them a complex set of tasks, or let's say even project, they decompose it into tasks, they do it for you and then you come back. So are we heading to a place where we need we can work less, or let's say, the type of tasks that we're going to do or the type of work we're going to do would be different than the one that we used to have done now, since the industrial revolution? Because you know, we all know that you know, when the industrial revolution started, so a lot of people were farmers, and then they start to go to factories, and now you know, like we start to have the blue coat, like you know workers, and then you know the white color workers. So all this, all these concepts are changing. What do you expect in that space? 

0:33:16 - Nick
Well, personally, I love what I do, Right. So it's important and you should like what you do, you know. So I enjoy my work and that's really important and that's. You know, that's a common concept that was pre-1980, for a very long time. So, you know, I think you should enjoy your work, I think you should enjoy what you do, and AI is going to open that door for you. So let's continue to focus on that core message. You know, find an industry that you enjoy, whether it's real estate or military contracting or whatever it may be beauty industry. Find it and then realize that, okay, sure, robots can do a lot of this work, but how can I be an integral part of what I'm passionate about? 

0:34:03 - Mehmet
What are other? We talked a lot about technologies today and you mentioned some of them. So what are you seeing the key trends for this year, for 2024, from emerging technologies other than AI? Of course AI will be here, but other than AI, what other emerging technologies are you expecting? And you know, I'm not asking my guests anymore to do these analysis for five years because I think this is now risky in this age, so I'm keeping it to one or two years from now. 

0:34:35 - Nick
One or two years from now, we're going to continue to see the trend of remote work and reshaping the office culture and having these sort of hubs where people can collaborate and work together to build new tools to automate these mundane tasks, and it's going to be a fantastic new era for people. We're going to see just a tremendous rise in productivity and I'm really excited about it. I think just the core message for me is making sure that we keep an eye out for cyber attacks and we make sure that operations are up and running, and saying continue Absolutely. 

0:35:16 - Mehmet
And yeah, we need to stay, you know, alert to all these cyber attacks, because I think they will increase more, because the more we digitize, the more we rely on technology and again, these bad guys, they will be trying to disrupt what we're trying to do. So, nick, as you know, we're almost coming to an end. If you want to give us, like what you're doing currently with the platform that you mentioned, that's duty, right so, and you know where are you planning to take it. 

0:35:54 - Nick
Absolutely. So I'm looking at the franchise model right now. I'm looking at leveraging my network to scale that out. You know, can we get into places like Walmart, Can we get into these local communities and these new cities that are being built all over the country and then look at foreign markets like Dubai as well, and then, once we scale that system out, having it locally owned and operated, I think is really important protecting our culture. So you know, I'm actually you know I'm looking at interesting things like what is a structure of a rifleman hit squad in the US Army? What does that look like? Can you have a staff leader? You know it's typically about a group of a team of nine people. How can you deploy those squads throughout the country and then, globally and strategically enough where they can service those communities, build those relationships with the local communities and really make sure that they protect their core? What makes them them? 

0:36:58 - Mehmet
That's great and where people can find more about the platform and about yourself. 

0:37:04 - Nick
make Absolutely so. I have a website as soon, technologistscom as well, as I'm on every single social channel there is. I put out a lot of free resources, right, there's no such thing as a free lunch, but you know there's free resources out there. Educate yourself, take advantage of these tools. Don't wait for the change. Get ahead of the change, stay ahead of it, stay ahead of the threats, stay ahead of the cyber attacks. Read, right. I read a lot. I'm always staying current on the current news. I put out a lot of blog posts and interpret the news as a filter for my audience, so I put those messages out there. I put it on TikTok, instagram, youtube. I'm also guessing on several different podcasts. So I'm doing my world tour right now, which is great, and then promoting my book, because you can't really change a physical book right. So, at the end of the day, my book digitalization, the new normal of the post pandemic world is a great resource that tells you about all the current threats, as well as the fourth part of my book, which is the solution. 

0:38:03 - Mehmet
That's fantastic. I want to make sure that I would put the link to let the audience go there. Really, I really appreciate the time today on the show here and sharing your experience and what you're trying to do. It's a very rich, I would say, episode, because we discussed plenty of things from AI to the SMB model when it comes to adopting technologies, plus cybersecurity, iot, edge computing and the future of work also as well. So I hope everyone will benefit from this and thank you for sharing your knowledge and thank you for sharing your perspective, I would say, with us today, and this is how usually I end each episode. So this is for the audience. 

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