IT in Armenia: strategic sectors and technological fields of the country

IT in Armenia: strategic sectors and technological fields of the country

Quick food, quick results, quick growth, fast internet, rapid learning… Speed has become an integral part of our daily lives. We want everything to be simpler, faster, and better. The constant demand for more time, speed, and performance is the driving force behind innovative technologies. And Armenia plays no small role in this.

A prime example is that no one wants to waste time standing in line. Today, there are queue management systems that allow customers to book their spots remotely and receive their services without waiting. Applications developed in Armenia, such as Earlyone, minimize customer wait times by tracking and controlling the entire service process.

Scientists, engineers, and programmers around the world are also trying to solve computational problems more quickly and efficiently. To achieve maximum effect, they are working on creating quantum computers. Today, we are amazed by the enormous size of computers that were used 20-30 years ago and took up whole rooms. Similarly, in the future, people will be thrilled by the quantum computers that are just being built today. It is a misconception that all types of bicycles have already been invented, just as it is mistaken to think that such technologies and inventions are exclusive to developed countries.

Armenia is a worthy example of IT development.

The ICT sector in Armenia has been steadily growing over the last decade. The Enterprise Incubator Foundation, a technology business incubator and IT development agency based in Yerevan, reports that the total income of the industry, consisting of the software and services sector as well as the internet service providers sector, reached $922.3 million in 2018, increasing by 20.5% from 2017.

The revenues in this sector account for 7.4% of Armenia's total GDP ($12.4 billion), according to the statistics department report. Significant governmental changes, various local and international initiatives, as well as close collaboration contribute to the continuous growth of the ICT sector in the country. The establishment of the Ministry of High-Tech Industry in Armenia (previously, the sector was regulated by the Ministry of Transport, Communication, and Information Technologies) is undoubtedly a step forward in enhancing efforts and resources in the IT industry.

SmartGate, a venture capital fund in Silicon Valley, stated in its review of the Armenian tech industry in 2018: "Today, Armenia's technology is a rapidly growing sector that has undergone a tremendous shift from outsourcing to product creation. A generation of mature engineers has emerged, possessing years of experience working on cutting-edge projects in multinational tech corporations and Silicon Valley startups. This is because the rapidly growing demand for highly qualified specialists in engineering and technical business development cannot be met in the short-term or medium-term within the country or through local educational institutions."

In June 2018, Armenian Prime Minister Nikol Pashinyan noted that Armenia has a need for more than 4,000 IT specialists. This indicates a pressing need for improvements and changes in the education and science sectors. Several local universities and organizations are taking initiatives to support the growing technical talent and scientific research, such as:

  • the Bachelor of Science in Data Science program in the USA;
  • the Master's program in Applied Statistics and Data Science at Yerevan State University;
  • machine learning and other related training, research, and grants offered by MNTC (the Center for Innovative Solutions and Technologies);
  • the Code Academy of Armenia, YerevaNN (the machine learning lab in Yerevan);
  • Gate 42 (the quantum computing lab in Yerevan), etc.

Strategic sectors of the IT industry in Armenia.

Large technology companies are also involved in training and knowledge/experience exchange programs. At this critical stage of ICT growth in Armenia, a strategic focus in the sector is essential. The aforementioned educational programs in data science and machine learning demonstrate that maximum efforts are being made in the country to promote these two fields. And not only because they are leading technological trends globally – there is a real high demand for skilled professionals in existing enterprises, startups, and research laboratories within Armenia.

Another strategic sector requiring a significant number of technical specialists is the defense industry. The Minister of High-Tech Industry, Hakob Arsakyan, has placed great emphasis on the development of strategic military technologies, considering the vital issues of military security that the country must address.

Other important sectors include science itself. There is a need for specific research, general and social studies, and various inventions. Individuals working on technologies in early development stages can achieve valuable technological breakthroughs. An excellent example of such activity is quantum computing, which is still in its infancy and requires extensive efforts from Armenian scientists leveraging global practices and experiences.

Next, let’s examine three technological areas in more detail: machine learning, military technologies, and quantum computing. These fields have the potential to significantly influence Armenia's high-tech sectors and place the country on the global technological map.

IT in Armenia: the field of machine learning

According to Data Science Central, machine learning (ML) is a subset of artificial intelligence focused on the ability of machines to collect data sets and teach themselves by changing algorithms as they process increasing and changing information, as well as solve problems without human intervention. Over the past decade, machine learning has rapidly entered the world with successful and varied applications of the technology in business and science.

Such applications include:

  • speech and voice recognition;
  • natural language generation (NLG);
  • automated decision-making processes for businesses;
  • cybersecurity and much more.

There are several successful Armenian startups applying similar solutions. For example, Krisp is a desktop application that reduces background noise during phone calls. According to David Baghdasaryan, the CEO and co-founder of 2Hz, Krisp's parent company, their solutions are revolutionary in audio technology. 'In just two years, our research team has created world-class technology that has no analogs. Our team consists of 12 specialists, most of whom hold a PhD in mathematics and physics,' says Baghdasaryan. 'Their pictures hang on the walls of our research department to remind us of our achievements and progress. This allows us to rethink the quality of sound in real communication,' adds David Baghdasaryan, CEO of 2Hz.

Krisp was recognized as the product of the year in audio and video in 2018 by ProductHunt, a platform showcasing the latest global technologies. Recently, Krisp has entered into partnerships with the Armenian telecommunications company Rostelecom, as well as international companies such as Sitel Group, for better service quality during calls from potential clients.

Another startup leveraging ML is SuperAnnotate AI, which provides precise image segmentation and object selection for image annotation. It features its own patented algorithm that helps large companies like Google, Facebook, and Uber save financial and human resources by automating manual tasks, particularly in dealing with images (SuperAnnotate AI eliminates pixel selection for images, speeding up the process 10-20 times with a single click).

There are several other emerging startups utilizing ML that are making Armenia a hub for machine learning in the region. For example:

  • Renderforest for creating animated videos, websites, and logos;
  • Teamable – a recommendation platform for employees (also known as a hiring tender, enabling the selection of qualified personnel without time costs);
  • Chessify – an educational application that scans chess moves, visualizes subsequent steps, and more.

These startups are significant not only because they use machine learning to provide business services but also as creators of scientific value for the tech world.

In addition to various business projects, Armenia has other initiatives that contribute greatly to the promotion and development of ML technologies in the country. One such initiative is YerevaNN. It is a non-profit research laboratory in computer science and mathematics that focuses on three research areas:

  • forecasting medical data time series;
  • deep learning for natural language processing;
  • developing Armenian treebanks.

There is also a platform for the community of machine learning specialists and enthusiasts in the country called ML EVN. Here, they conduct research, share resources and knowledge, organize educational events, and connect companies with educational centers, among other activities. According to ML EVN, Armenian IT companies require greater expansion in the ML industry, which, unfortunately, the Armenian education and science sectors are unable to provide. However, the skills gap can be filled through more stable collaboration between various enterprises and the education sector.

Quantum Computing as a Key Area of IT in Armenia

Quantum computing is expected to be the next breakthrough in technology. The IBM Q System One, the world's first quantum computing system designed for scientific and commercial use, was unveiled less than a year ago. This shows just how revolutionary this technology is.

What exactly is quantum computing? It is a new type of computation that solves problems of extraordinary complexity that classical computers cannot handle. Quantum computers enable discoveries across many fields—from healthcare to environmental protection systems. Moreover, technology can solve these problems in just a few days or even hours, while in conventional terms it would take billions of years.

It is said that the quantum capabilities of countries will help determine future economic strategies, much like nuclear energy did in the 20th century. This has created what is termed as the quantum race, involving the USA, China, Europe, and even the Middle East.

It is assumed that the sooner a country joins the race, the more it will gain not just technologically or economically, but also politically.

Armenia is taking its first steps in quantum computing, initiated by several specialists in physics and computer science. Gate42, a newly formed research group comprised of Armenian physicists, computer scientists, and developers, is considered a hub of quantum research in Armenia.

Their work revolves around three goals:

  • conducting scientific research;
  • Creation and development of an educational base;
  • Raising awareness among technical specialists with relevant expertise to advance potential careers in quantum computing.

The last point has not yet been applied to higher education institutions, but the team is making progress with promising achievements in this IT field.

What is Gate42 in Armenia?

The Gate42 team includes 12 members (researchers, consultants, and a board of trustees), who are PhD candidates and scholars from Armenian and foreign universities. Grant Garibyan, Ph.D., is a researcher at Stanford University and also a member of the Quantum AI team at Google. Additionally, there is a Gate42 advisor who shares his experience and knowledge while engaging in scientific work with the team in Armenia.

Another consultant, Vazgen Akopdjanyan, is a co-founder of Smartgate.vc, working on the strategic development of the research group alongside director Akop Avetisyan. Avetisyan believes that the quantum community in Armenia at this stage is small and modest, lacking talent, research laboratories, educational programs, funding, etc.

Nevertheless, even with limited resources, the team has achieved certain successes, including:

  • receiving a grant from Unitary.fund (the program focuses on open-source quantum computing for the project 'Open-source library for reducing quantum errors: methods for compiling programs more resistant to processor noise');
  • developing a prototype of a quantum chat;
  • participating in the Rigetti Hackathon, where scientists experimented with quantum supremacy, among other activities.

The team believes that the field has promising potential. Gate42 will do its utmost to ensure Armenia is recognized on the global technology map as a country developing quantum computing and successful scientific projects.

Defense and cybersecurity as a strategic area of IT in Armenia.

Countries that produce their own military weapons are more independent and powerful both politically and economically. Armenia needs to consider strengthening and institutionalizing its military resources not only by importing but also by producing them. Additionally, cybersecurity technologies should be a priority. This is a serious issue, as Armenia's ranking in the National Cybersecurity Index is only 25.97.

"Sometimes people think it’s just about weapons or military equipment. However, producing even small quantities can provide a number of jobs and significant turnover," said High-Tech Minister Akop Arshakyan.

Arshakyan places great importance on this industry in his strategy for the development of the Information Technology sector in Armenia. Several enterprises, such as Astromaps, produce specialized equipment for helicopters and provide the Ministry of Defense with information to modernize military technologies.

Recently, Armenia presented military products at the IDEX (International Defense Conference and Exhibition) in the UAE in February 2019, along with electro-optical and other military equipment. This means that Armenia aims to produce military technology not only for its own consumption but also for export.
According to Karen Vardanyan, the Director General of the Union of Advanced Technologies and Enterprises (UATE) in Armenia, the army needs IT specialists even more than other sectors. He proposes that students studying information technology have the opportunity to serve in the army while continuing their education, dedicating 4-6 months a year to research important issues concerning the military. Vardanyan also believes that the growing technical potential in the country, for example, students from Armath Engineering Laboratories, can play an important role in vital technological solutions for the army.

Armath is an educational program created by UATE in the public school system of Armenia. In a short period, the project has achieved significant success and currently has 270 laboratories with nearly 7,000 students in various schools across Armenia and Artsakh.
Various Armenian enterprises are also engaged in information security. For instance, the ArmSec foundation brings together cybersecurity specialists to address security issues in collaboration with the government. Concerned about the frequency of annual data leaks and cyberattacks in Armenia, the team offers its services and solutions for military and defense systems, as well as other national and private institutions in need of data and communication protection.

After several years of hard work and perseverance, the foundation announced a collaboration with the Ministry of Defense, which allowed for the creation of a new and reliable operating system called PN-Linux. It will focus on digital transformation and cybersecurity. This announcement was made at the ArmSec 2018 security conference by Samvel Martirosyan, the director of the ArmSec foundation. This initiative ensures that Armenia is one step closer to e-government and secure data storage—a challenge the country has always strived to tackle.

In conclusion, the Armenian technology industry should focus on more than just the three areas mentioned above. Nonetheless, these three areas can have the most significant impact, considering the existing successful business projects, educational programs, and the growing talent, as well as the prominent role they play on the global technology stage as technological breakthroughs. Startups will further address the life needs and challenges of most ordinary citizens of Armenia.

Given the rapid changes that are natural to the IT sector worldwide, by the end of 2019 Armenia will certainly have a different picture—with a more established startup ecosystem, expanded research laboratories, effective inventions, and successful products.

Source: habr.com

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