Clever Geek Handbook

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

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Fast food, fast results, fast growth, fast Internet, fast training ... Speed ​​has become an integral part of our daily lives. We want everything to be simpler, faster and better. The constant need for more time, speed and productivity is the driving force behind innovative technology. And Armenia is not the last one in this series.



An example of this: no one wants to spend time standing in lines. Today, there are queue management systems that allow customers to book their seats remotely and receive their services without a queue. Applications developed in Armenia, such as Earlyone, minimize customer waiting times by monitoring and controlling the entire service process.



Scientists, engineers and programmers around the world are also trying to solve computational problems faster and more efficiently. To achieve maximum effect, they are working on the creation of quantum computers. Today we are struck by the huge size of computers that were used 20-30 years ago and occupied entire rooms. Similarly, in the future, people will be delighted with quantum computers that are only being built today. It is a mistake to assume that all types of bicycles have already been invented, and it is also a mistake to think that such technologies and inventions are inherent only in developed countries.



Armenia is a worthy example for IT development



The ICT sector (ICT - Information and Communication Technologies) in Armenia has been growing steadily over the past decade. Enterprise Incubator Foundation, a technology business incubator and information technology development agency based in Yerevan, reports that the industry’s total revenue, consisting of software and services, as well as Internet service providers, reached $ 922.3 million in 2018, an increase of 20.5% since 2017.



Revenues in this sector account for 7.4% of Armenia’s total GDP ($ 12.4 billion), according to a report from the statistics department. Major government changes, various local and international initiatives, as well as close cooperation contribute to the continuous growth of the ICT sector in the country. The creation of the Ministry of High-Tech Industry in Armenia (previously the sector was regulated by the Ministry of Transport, Communications and Information Technologies) is clearly a step forward in terms of improving efforts and resources in the IT industry.



SmartGate, a Silicon Valley venture capital fund, in its 2018 review of the Armenian technology industry, states: “Today, Armenia’s technology is a fast-growing industry in which there has been a huge transition from outsourcing to product creation. A generation of mature engineers has entered the scene who have many years of experience working on cutting-edge projects at multinational technology corporations and Silicon Valley startups. Because the fast-growing demand for highly qualified specialists in the field of engineering and technical business development cannot be satisfied in the short or medium term within the country or through local educational institutions. ”



In June 2018, Prime Minister of Armenia Nikol Pashinyan noted that in Armenia there is a need for more than 4,000 IT specialists. That is, there is an urgent need for improvements and changes in the sectors of education and science. Several local universities and organizations are taking initiatives to support growing technical talent and research, such as:





Strategic sectors of the IT industry in Armenia



Large technology companies also take part in training and knowledge / experience exchange programs. At this vital stage of ICT growth in Armenia, the strategic orientation of the sector is mandatory. The above-mentioned educational programs in the field of data science and machine learning show that maximum efforts are made in the country to advance these two areas. And not only because they are the leading technological trends in the world - there is a real high demand for qualified specialists in existing enterprises, start-ups and research laboratories in Armenia.



Another strategic sector that needs a large number of technical specialists is the military industry. Hakob Arshakyan, Minister of High Technology Industry, paid great attention to the development of strategic military technologies, taking into account the vital problems of military security that the country should solve.



Other important industries include, directly, science. There is a need for specific research, general and social research, various inventions. People working on technology in the early stages of development may have useful technological advances. An excellent example of such an activity is quantum computing, which is in its early stages and requires a lot of work of Armenian scientists with the involvement of world practice and experience.



Next, we consider three technological areas in more detail: machine learning, military technology, and quantum computing. It is these areas that can have a significant impact on the high-tech industries of Armenia and mark the state on the world technological map.



IT in Armenia: Machine Learning



According to Data Science Central, machine learning (Machine Learning or ML) is an application / subset of artificial intelligence, “focused on the ability of machines to acquire a dataset and to teach themselves, changing algorithms as they increase and change the information they process”, and also solve problems without human intervention. Over the past decade, machine learning has literally burst into the world thanks to the successful and diverse applications of technology in business and science.



Such applications include:





There are several successful Armenian startups that apply similar solutions. For example, Krisp, which is a desktop application that reduces background noise during phone calls. According to David Baghdasaryan, CEO and co-founder of 2Hz, Krisp's flagship company, their solutions are revolutionary in audio technology. “In just two years, our research team has created world-class technology that has no analogues in the world. Our team has 12 specialists, most of whom have a doctorate in mathematics and physics, ”says Baghdasaryan. “Their photographs hang on the walls of our research department to remind us of achievements and development. This makes it possible to rethink the sound quality 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 that represents the latest global technology. Crisp recently entered into partnerships with the Armenian telecommunications company Rostelecom, as well as with international companies such as the Sitel Group, to better serve calls from potential customers.



Another ML-powered startup is SuperAnnotate AI, which provides precise image segmentation and object selection for image annotation. It has its own patented algorithm that helps large companies such as Google, Facebook and Uber to save financial and human resources by automating manual work, in particular when working with images (SuperAnnotate AI eliminates the point selection of images, the process is accelerated by 10- 20 times with one click).



There are a number of other growing startups using ML that make Armenia the center of machine learning in the region. For example:





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



In addition to various business projects in Armenia, there are other initiatives that make a great contribution to the promotion and development of ML technologies in Armenia. These include the object YerevaNN. It is a non-profit research laboratory in computer science and mathematics, which deals with three areas of research:





There is also a platform in the country for a community of machine learning professionals and enthusiasts called ML EVN. Here they conduct research, share resources and knowledge, organize educational events, connect companies with educational centers, etc. According to ML EVN, Armenian IT companies require greater expansion in the ML industry, which, unfortunately, the Armenian sphere of education and science does not can provide. However, a skills gap can be filled by more ongoing collaboration between different enterprises and the education sector.



Quantum computing as a key area of ​​IT in Armenia



It is assumed that quantum computing will be the next breakthrough in technology. IBM Q System One, the world's first quantum computing system for scientific and commercial use, was introduced less than a year ago. This shows how revolutionary this technology is.



What are quantum computations? This is a new type of computing that solves problems beyond a certain complexity that classic computers cannot handle. Quantum computers can discover discoveries in many areas - from healthcare to environmental systems. At the same time, it will take only a few days or even hours to solve the technology problem; in its usual form, it will take billions of years.



It is said that the quantum capabilities of countries will help determine a future economic strategy, such as nuclear energy in the 20th century. This created the so-called quantum race, in which the United States, China, Europe and even the Middle East participate.



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



Armenia is taking its first steps in quantum computing at the initiative of several experts in the field of physics and computer science. Gate42, a newly established research group consisting of Armenian physicists, computer scientists and developers, is considered an oasis of quantum research in Armenia.



Their work revolves around three goals:





The last paragraph does not yet apply to higher education institutions, but the team is moving forward with promising achievements in this IT field.



What is Gate42 in Armenia?



Gate42 team consists of 12 members (researchers, consultants and board of trustees) who are candidates of sciences and scientists from Armenian and foreign universities. Hrant Garibyan, Ph.D., is a scientist at Stanford University and a member of the Quantum AI team at Google. Plus, an adviser to Gate42, who shares his experience, knowledge and is engaged in scientific work with a team in Armenia.



Another consultant, Vazgen Hakobjanyan, is a co-founder of Smartgate.vc, working on the strategic development of the research group together with director Hakob Avetisyan. Avetisyan believes that the quantum community in Armenia at this stage is small and modest, it lacks talents, research laboratories, educational programs, funds, etc.



Nevertheless, even with limited resources, the team managed to achieve certain successes, including:





The team believes that the direction has promising potential. Gate42 itself will do everything possible so that Armenia is marked on the global technological map as a country with the development of 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 is obliged to consider strengthening and institutionalizing its own military resources, not only importing, but also producing them. Also in the foreground should be cybersecurity technology. This is a serious problem because, according to the National Cybersecurity Index, the rating of Armenia is only 25.97.



“Sometimes people think that we are talking only about weapons or military equipment. However, production of even small volumes can provide a number of jobs and significant turnover, ”said Hakob Arshakyan, Minister of High Technologies.


Arshakyan attaches great importance to this industry in his strategy for developing the information technology sector in Armenia. Several enterprises, such as Astromaps, produce special equipment for helicopters and provide the Ministry of Defense with information for upgrading army technology.



Recently, Armenia presented military products at the IDEX exhibition (International Defense Conference and Exhibition) in the UAE in February 2019, as well as electro-optical and other military equipment. This means that Armenia seeks to produce military equipment not only for its own consumption, but also for export.

According to Karen Vardanyan, General Director of the Union of Advanced Technologies and Enterprises (UATE) in Armenia, the army needs IT specialists even more than in other areas. He invites students studying information technology to be able to serve in the army and at the same time continue their studies, devoting 4-6 months a year to research on important issues related to the army. Vardanyan also believes that the growing technical potential in the country, for example, students of Armath Engineering Laboratories, can subsequently play an important role in vital technological solutions in the army.



Armath is an educational program created by UATE in the public school system of Armenia. In a short period of time, the project has achieved significant success, and currently has 270 laboratories with nearly 7,000 students in different schools in Armenia and Artsakh.

Various Armenian enterprises are also working on information security. For example, the ArmSec Foundation brings together cybersecurity professionals to address security issues in partnership with the state. Concerned about the frequency of annual data leaks and cyber attacks in Armenia, the team offers its services and solutions for military and defense systems, as well as other national and private institutions that need data protection and communications.



After several years of hard work and perseverance, the foundation announced cooperation with the Ministry of Defense, which allowed creating a new and reliable operating system called PN-Linux. It will focus on digital conversion and cybersecurity. This announcement was made at the ArmSec 2018 Security Conference, Samvel Martirosyan, who is the director of the ArmSec Foundation. This initiative ensures that Armenia will be one step closer to e-governance and secure data storage - a problem that the country has always tried to fight.



In conclusion, we add that, the Armenian technological industry should focus not only on the three areas indicated above. Nevertheless, these three areas can have the greatest impact, given the existing successful business projects, educational programs and growing talent, as well as the outstanding role they play in the global technological arena as technological breakthroughs. Startups will additionally allow solving the vital needs and problems of the majority of ordinary citizens of Armenia.



Given the rapid changes that are natural for the IT sector worldwide, at the end of 2019, Armenia will definitely have a different picture - with a more established start-up ecosystem, expanded research laboratories, effective inventions and successful products.


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