Generative AI Watch: Small Language Models’ Growing Role in a Multi-Model World

Monday.com
R. Bhattacharyya

Summary Bullets:

  • As training techniques improve, small language models (SLMs) are becoming more and more accurate, increasing their appeal.
  • The smaller models make sense for simpler tasks; they can work offline and are a good alternative when organizations want to process information close to the source of collection.

The generative AI (GenAI) landscape has been evolving at breakneck speed since OpenAI exploded onto the scene in late 2022.  And despite the numerous new GenAI solutions and product enhancements already brought to market in the last 18 months, momentum around natural language processing (NLP) shows no signs of slowing down. The latest buzz worth paying attention to is around SLMs, which offer capabilities similar to large language models (LLMs) but require far less training data and processing power.  Easier to adopt, less expensive to run, and with a smaller carbon footprint, these models hold the potential to further accelerate the already rapid pace of GenAI adoption.

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IBM Extends its Automation and Multi-Cloud Management Game with $6.4 Billion Bid to Buy HashiCorp

Amy Larsen DeCarlo – Principal Analyst, Security and Data Center Services

Summary Bullets:

• IBM’s pending deal to acquire HashiCorp, with its Terraform infrastructure-as-code software platform, gives the company a popular cloud configuration toolset.

• The buy isn’t a slam dunk; HashiCorp has struggled to make money from its formerly open-source software.

One of the issues organizations struggle with is efficiently setting up and managing their multi-cloud environments. Last week, IBM announced plans to acquire Hashicorp, a vendor with a Terraform platform the company says can help IBM clients do that. HashiCorp’s catalog includes infrastructure lifecycle management and security lifecycle management solutions enterprises can use to automate hybrid and multi-cloud environments. This will extend IBM’s automation and multi-cloud management product set, which it delivers through the Red Hat subsidiary.

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UK Telcos Mark World Earth Day

R. Pritchard

Summary Bullets:

• UK telcos are using Earth Day to launch new climate change and circular economy initiatives for all types of customers from consumers to businesses.

• Selling benefits like cost savings and guaranteeing refurbished equipment alongside providing emissions reduction training, advice, and tools enable further sustainability progress.

April 22, 2024 marks Earth Day, which highlights the importance of protecting the environment. The impact of climate change is becoming more of a daily event worldwide as evidenced by reports of unprecedented flooding in Dubai (UAE) and Guangdong (China) in just the past seven days. Telcos in the UK are using Earth Day to launch and re-emphasize initiatives and programs they are undertaking to address the challenge of CO2 reduction.

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Enterprise IoT Platform Enhancements Enrich Usability, Security, and Application Breadth

Kathryn Weldon – Research Director, Business Network and IT Services – Americas

Summary Bullets:

• IoT platform vendor dropouts were in the news in 2023, suggesting not only consolidation but reduced demand and profitability concerns.

• While hyperscalers remain leaders, industrial stalwarts such as PTC, Software AG, and Siemens are still innovating and enhancing platforms with security, easy of use, and integration with adjacent products in their portfolios.

Over the last year, the most compelling changes in the market for enterprise IoT platforms were the dropping out of key vendors including Google Cloud IoT (in August 2023), presumably based on lack of revenues/profitability; the decommissioning of most services from SAP’s IoT PaaS offering, announced at end-2023; and IBM’s winding down of its Watson IoT platform service in December 2023, with IBM focusing instead on offering IoT capabilities via its hybrid cloud solutions and software. In addition to these dropouts of platforms, which focused on IoT application enablement, products focused on connectivity and device management, such as the Ericsson IoT Connectivity platform, changed hands, having been sold to IoT MVNO and platform vendor Aeris. Some of the other original leaders have also marginalized their IoT offerings, embedding them in vertical solutions, or combining IoT with big data and AI tools, positioning IoT primarily as a data collection enabler. Industrial stalwarts Software AG and Siemens, however, are becoming innovators in this market, with good reviews for functionality, vertical solutions, and contributions to positive ROI.

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Peek Into the Future by Following Test and Measurement

S. Schuchart

Summary Bullets:

• The impact of IT technologies that are growing beyond IT is staggering and shows the need for advanced test and measurement.

• According to the GlobalData Deal Trends database, there have been over 20 acquisitions in this space since 2020 and numerous asset purchases and partnerships.

For every technology product that comes to market, both hardware and software, there is testing. One of the best ways to see where a market is heading, and what technologies are coming up in the next 4+ years, is to watch the testing market. The software testing market for development and deployment gets a lot of press – mostly because that kind of software testing is part of the production chain both at independent software vendors (ISVs) and in enterprises. However, the broader testing market is where the latest technologies that are not even close to release are being evaluated, where chip designers, chip manufacturers, engineers, and product companies are doing cutting edge research. These test tools can be specialized hardware, software, or both. In addition, many of the largest multinational enterprises use testing tools to validate and tweak advanced designs in their own IT and OT environments. Much of this research is done hand in hand with the testing equipment companies. Keeping an eye on what’s happening in the testing/measurement market shows clearly the investments being made for the future.

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Google Cloud Next 2024: Google Under Pressure Leads with Engineering-Driven Reputation

C. DunlapResearch Director

Summary Bullets:

• Google leads mega developer conference with its engineering-driven developer reputation.

• Key dev tools include Google’s Gemini Code Assist and Vertex AI Agent Builder.

Google was heavily scrutinized during the Google Cloud Next conference, particularly after 2023’s fumble during its foray into the generative AI (GenAI) space when, during a public GenAI demo, Google Bard returned a highly publicized inappropriate response. The company’s clear directive during its mega developer conference, Google Cloud Next, was to demonstrate its key role in the industry’s hottest emerging technology alongside GenAI and hyperscaler leaders. Its strategy: appeal to its strong following of enterprise developers where it has long established an engineering-driven reputation (through innovations such as cloud-native’s greatest open-source software technology to date, Kubernetes). Its messaging was around a Google Gemini-backed development initiative to make coding, platforms, and operations superior.

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Orange Business Flux Vision Uses AI to Address Sustainability Challenges

R. Pritchard

Summary Bullets:

• Orange Business has enhanced its Flux Vision real-time population flow observation tool with measurement of carbon footprints produced by the movement of people and goods.

• Using anonymized technical data points and AI-driven analysis, it helps local authorities, and tourism, distribution, and transport customers address sustainability challenges and save money.

Orange Business Flux Vision is a real-time population flow observation tool that provides anonymized data from the company’s mobile network. Launched ten years ago, the GDPR-compliant solution helps in implementing development strategies by local authorities and customers in the tourism, distribution, and transport industries.

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The White House Warns US Governors of Serious Threats to Critical Water Infrastructure

Amy Larsen DeCarlo – Principal Analyst, Security and Data Center Services

Summary Bullets:

• US government officials are advising state governors that drinking water and wastewater systems are under threat.

• Recent attacks carried out by bad actors working on behalf of the Iranian and Chinese governments used different techniques to breach critical infrastructure; the government expects more to come. A letter from the White House included a link to guidance on what security controls water systems should have in place.

Concerns about attacks on critical infrastructure are nothing new, but recent events have shown that bad actors are becoming more brazen. A survey conducted by Mitre and the Harris Corporation in February 2024 found that 81% of 2,046 Americans reported concern about critical infrastructure safety and security. Drinking water and wastewater systems are particularly attractive targets to attackers because they are essential to the population and typically under-secured.

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Mobile Operators Announce Few New Private Network Services but Note Diverse Trials and Customers

Kathryn Weldon – Research Director, Business Network and IT Services – Americas

Summary Bullets:

• Since October 2023, there have been few public announcements of new private wireless services or enhanced capabilities of existing services from key mobile operators in the US and Europe.

• However, operators have announced interesting new trials or commercial launches of private 5G, expanding use cases in verticals that ranged from automotive to retail, heavy industry, event venues, universities, ports, and utilities.

Recent PCN Announcements

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European Commission Agrees Data Center Emissions Reporting Act

R. Pritchard

Summary Bullets:

• The European Commission (EC) continues to set the benchmark for sustainability reporting in technology as part of the European Energy Efficiency Directive (EEED).

• Signs of ongoing innovation to mitigate climate damage from data centers and use scarce resources as efficiently as possible as demand continues to grow.

The European Union’s climate goals aim to “enhance present and future energy security and affordability.” With the information and communication technology (ICT) sector as a focus for sustainability, the EC notes that in 2018, the energy consumption of data centers in the EU was 76.8 TWh. This is expected to rise by 28% to 98.5 TWh by 2030, with data centers accounting for 3.2% of energy demand by 2030 (2018: 2.7%). It notes that “these projections are expected to be revised upwards considering the strong growth of emerging services and technologies such as streaming, cloud gaming, blockchain, artificial intelligence, machine learning, and virtual reality.”

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