Patent disputes heighten partner uncertainty — Austin McChord

The episode highlights a fundamental shift towards automation and agentic workflows in IT service delivery, as described by Slide and its leadership. This shift is exemplified by the move from traditional, manual “what” work in IT and software engineering to task automation at a machine or agentic level. Slide’s adoption of internally developed SaaS backup for Microsoft 365 and accelerated product roadmaps—enabled by recent AI advancements—reflects this industry-wide movement toward leveraging technology for operational speed and efficiency.

The most consequential development discussed centers on the patent litigation between Slide and Kaseya/Datto. According to public records and statements from Slide, Kaseya and Datto expanded their infringement claims to cover 16 patents, now adding three more, and are seeking an injunction against Slide’s BCDR platform. Slide, led by interim CEO Austin McChord, maintains that it did not infringe on patents or misuse trade secrets, asserting confidence in its legal position and product differentiation. Slide has not filed any patents of its own as of now. The litigation brings uncertainty for MSP partners, as Kaseya’s complaint includes claims that customer usage may also constitute infringement.

Supporting developments include leadership changes at Slide, with Michael Fass stepping down and no direct link to the ongoing litigation, as confirmed by Slide. The episode also details Slide’s rapid internal technology adoption, with AI-driven acceleration of development cycles, reorganization of development teams, and an emphasis on reducing human synchronization bottlenecks. Internally, Slide is measuring engineering progress through deliverable output and reduction in support tickets rather than traditional process metrics, reflecting a shift in operational accountability.

For MSPs and IT service providers, the practical implications include growing exposure to supplier legal disputes and potential contract risk, especially where customer usage is implicated in ongoing litigation. The move toward automation introduces new governance challenges as responsibilities shift from manual to machine-driven processes. Leaders should closely monitor vendor claims about agentic technology readiness, manage costs as AI tools are not always cost-effective at current scale, and ensure safeguards are in place when outsourcing operational tasks to automated systems. Ongoing adaptation will be required as both legal environments and technology capabilities continue to change rapidly.

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