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Tag: accelerates

Robotic Automations

Cloud revenue accelerates 21% to $76 billion for the latest earnings cycle | TechCrunch


If you were concerned about slowing cloud infrastructure growth for a time in 2023, you can finally relax: The cloud was back with a vengeance this quarter. The market as a whole was up a healthy $13.5 billion to $76 billion, up 21% over the first quarter in 2023, per Synergy Research.

That’s healthy growth by any measure.

If you’re wondering what’s driving the growth, you probably guessed that it’s related to generative AI and the copious amount of data required to build the underlying models. Whether it’s Microsoft’s close links to OpenAI, Google Cloud making a slew of AI announcements at its recent customer conference or Amazon’s infrastructure managing the data side of the equation, AI is driving lots of business for these vendors.

“There is a symbiotic relationship between the rapid advancement and adoption of AI and the scalable ‘Big 3’ cloud infrastructure providers,” said Rudina Seseri, founder and managing partner at Glasswing Ventures, a firm that invests heavily in AI startups. “AI actually makes the cloud providers more valuable. By creating more capabilities for computing through automation and augmentation within the enterprise, there is a corresponding increased demand for the underlying computational power provided by the Big 3 cloud infrastructure vendors, as evidenced by their immense growth in recent quarters.”

Seseri also sees the cloud vendors making it easier for startups to build on top of their infrastructure in the coming years. “For startups, many depend on the cloud providers, having built atop these immense platforms. I predict we will see immense investment in AI-optimized infrastructure by the major cloud platforms, as it is a key driver behind the sustained growth in cloud computing, which will make it easier to build AI platforms and products on the cloud,” she said.

And these companies are reaping the financial windfall for the newfound interest in this technology. Altimeter partner Jamin Ball reports that those rewards started coming in last quarter, and the ball kept on rolling into this one. Amazon cloud growth had dropped as low as 12% in Q2 and Q3 last year, climbing a bit to 13% in Q4. But the company really kicked it up a notch this quarter with revenue of $25 billion, up 17% over the prior year. That’s a $100 billion run rate, good for 31% market share.

Ball’s numbers indicate that Azure continues to kill it. The company now has 25% market share, good for a $76 billion run rate, up 31% over the previous year. Google is a strong third with 11% market share, up 28% YoY (although it’s important to note that Ball’s number includes Google Workspace, and Synergy’s numbers are only infrastructure and platform numbers).

Image Credits: Jamin Ball

The days of cost cutting in the cloud appear to be over. And although we probably aren’t going back to the heady growth numbers of 2021 and 2022, AI seems to be bringing a new wave of substantial growth to the cloud vendors.

“In terms of annualized run rate, we now have a $300 billion market, which is growing at 21% per year,” Synergy’s chief analyst John Dinsdale said in a statement. “We will not return to the growth rates seen prior to 2022, as the market has become too massive to grow that rapidly, but we will see the market continue to expand substantially. We are forecasting that it will double in size over the next four years.”

As companies’ continuing thirst for AI and the data management related to that grows, it seems that the cloud glory days are back. The growth may not be as gaudy as back in the day, but it’s still pretty darn good for a maturing industry sector, with all signs pointing to solid growth in the coming years.

Image Credits: Synergy Research


Software Development in Sri Lanka

Robotic Automations

As AI accelerates, Europe's flagship privacy principles are under attack, warns EDPS | TechCrunch


The European Data Protection Supervisor (EDPS) has warned key planks of the bloc’s data protection and privacy regime are under attack from industry lobbyists and could face a critical reception from lawmakers in the next parliamentary mandate.

“We have quite strong attacks on the principles themselves,” warned Wojciech Wiewiórowski, who heads the regulatory body that oversees European Union institutions’ own compliance with the bloc’s data protection rules, Tuesday. He was responding to questions from members of the European Parliament’s civil liberties committee concerned the European Union’s General Data Protection Regulation (GDPR) risks being watered down. 

“Especially I mean the [GDPR] principles of minimization and purpose limitation. Purpose limitation will be definitely questioned in the next years.”

The GDPR’s purpose limitation principle implies that a data operation should be attached to a specific use. Further processing may be possible — but, for example, it may require obtaining permission from the person whose information it is, or having another valid legal basis. So the purpose limitation approach injects intentional friction into data operations.

Elections to the parliament are coming up in June, while the Commission’s mandate expires at the end of 2024 so changes to the EU’s executive are also looming. Any shift of approach by incoming lawmakers could have implications for the bloc’s high standard of protection for people’s data.

The GDPR has only been up and running since May 2018 but Wiewiórowski, who fleshed out his views on incoming regulatory challenges during a lunchtime press conference following publication of the EDPS’ annual report, said the make-up of the next parliament will contain few lawmakers who were involved with drafting and passing the flagship privacy framework.

“We can say that these people who will work in the European Parliament will see GDPR as a historic event,” he suggested, predicting there will be an appetite among the incoming cohort of parliamentarians to debate whether the landmark legislation is still fit for purpose. Though he also said some revisiting of past laws is a recurring process every time the make-up of the elected parliament turns over. 

But he particularly highlighted industry lobbying, especially complaints from businesses targeting the GDPR principle of purpose limitation. Some in the scientific community also see this element of the law as a limit to their research, per Wiewiórowski. 

“There is a kind of expectation from some of the [data] controllers that they will be able to reuse the data which are collected for reason ‘A’ in order to find things which we don’t know even that we will look for,” he said. “There is an old saying of one of the representatives of business who said that the purpose limitation is one of the biggest crimes against humanity, because we will need this data and we don’t know for which purpose.

“I don’t agree with it. But I cannot close my eyes to the fact that this question is asked.”

Any shift away from the GDPR’s purpose limitation and data minimization principles could have significant implications for privacy in the region, which was first to pass a comprehensive data protection framework. The EU is still considered to have some of the strongest privacy rules anywhere in the world, although the GDPR has inspired similar frameworks elsewhere.

Included in the GDPR is an obligation on those wanting to use personal data to process only the minimum info necessary for their purpose (aka data minimization). Additionally, personal data that’s collected for one purpose cannot simply be re-used, willy-nilly, for any other use that occurs.

But with the current industry-wide push to develop more and more powerful generative AI tools there’s a huge scramble for data to train AI models — an impetus that runs directly counter to the EU’s approach.

OpenAI, the maker of ChatGPT, has already run into trouble here. It’s facing a raft of GDPR compliance issues and investigations — including related to the legal basis claimed for processing people’s data for model training.

Wiewiórowski did not explicitly blame generative AI for driving the “strong attacks” on the GDPR’s purpose limitation principle. But he did name AI as one of the key challenges facing the region’s data protection regulators as a result of fast-paced tech developments.

“The problems connected with artificial intelligence and neuroscience will be the most important part of the next five years,” he predicted on nascent tech challenges.

“The technological part of our challenges is quite obvious at the time of the revolution of AI despite the fact that this is not the technological revolution that much. We have rather the democratization of the tools. But we have to remember as well, that in times of great instability, like the ones that we have right now — with Russia’s war in Ukraine — is the time when technology is developing every week,” he also said on this.

Wars are playing an active role in driving use of data and AI technologies — such as in Ukraine where AI has been playing a major role in areas like satellite imagery analysis and geospatial intelligence — with Wiewiórowski saying battlefield applications are driving AI uptake elsewhere in the world. The effects will be pushed out across the economy in the coming years, he further predicted.

On neuroscience, he pointed to regulatory challenges arising from the transhumanism movement, which aims to enhance human capabilities by physically connecting people with information systems. “This is not science fiction,” he said. “[It’s] something which is going on right now. And we have to be ready for that from the legal and human rights point of view.”

Examples of startups targeting transhumanism ideas include Elon Musk’s Neuralink, which is developing chips that can read brain waves. Facebook-owner Meta has also been reported to be working on an AI that can interpret people’s thoughts.

Privacy risks in an age of increasing convergence of technology systems and human biology could be grave indeed. So any AI-driven weakening of EU data protection laws in the near term is likely to have long-term consequences for citizens’ human rights.


Software Development in Sri Lanka

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