"Quantum Computing and its Business Models"
Hugo Cespedes A.
Entrepreneur, Adviser (Innovation, Entrepreneurship, Technology, Strategy, Collaboration); Start-up Mentor; former Professor; MBA; MBEvolution
I have previously addressed the topic of Quantum Computing, in an introductory manner. That is why on this occasion, I will address the topic from the point of view of the new business models that are emerging.
Beyond the Classic Computer..
Quamtum Computing, in short, is an application of quantum physics. This technology has great potential when it comes to applying it to companies. It uses quantum computers that use qubits. A qubit is the minimum unit of information for quantum computers. If a basic bit of a conventional computer contains a binary value of 0 or 1; a qubit can contain both values at the same time. This is known as “overlap” and allows multiple options to be processed simultaneously. This ability to process information allows us to recreate different scenarios with this technology. The quantum computer offers countless solutions to the problems that arise. Thus, it can be said with certainty that these computers have processors with a power that is impossible to simulate by standard computers.
The applications of these computers, as we will see, are multiple. From materials engineering, chemistry, natural sciences. What models can be studied thanks to Quantum Computing? All those processes in which the constituent model is atoms and molecules.
How can this help my business?
Large companies, often supported by startups, try to “renew their business model” through new technologies. Right now, some of these companies are applying Quantum Computing.
An issue to keep in mind is that this technology uses nanometric-sized components, tiny and undetectable to the human eye. These components allow us to respond to major challenges in a matter of hours or days. If we used normal computers, it would take years to find the same solution, says Jesús Vergara.
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Applications of Quantum Computing in Business.
Quantum Computing is considered one of the cutting-edge technologies that exist today. Thanks to the enormous advances that have been made in recent years in hardware and software, Quantum Computing has ceased to be pure theory and has become something real.
As experts in the field maintain, “Quantum Computing has the potential to offer great business value, solving the most difficult subsets of problems”. Although currently, the computing solutions that are being offered in this sense with quantum gates are high-quality qubit operations. The truth is that it is not applied to solving practical problems. Quantum Computing has the potential to surpass supercomputers in terms of processing power to solve complex problems.
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Some Ways to Apply Quantum Computing in Companies.
Miguelez maintains that in recent years different applications of Quantum Computing to the business sector have been discovered. Among the main ways to get the most out of it we can consider:
1. Financial Services: Quantum computers are going to produce incalculable changes in the financial sector. In fact, it is undoubtedly the sector that will benefit the most from this type of computing. Both banks, financial institutions and investment funds can use Quantum Computing solutions to reduce their risks and optimize their profits. There are already algorithms that make predictions in this sense, so opting for this type of service will offer a huge competitive advantage to financial companies that have it. Companies like “Multiverse Computing” are developing tools that take care of economic and business aspects to apply them to companies. The ability of a quantum computer to analyze variables and offer solutions would allow it to do things that were previously unthinkable, such as predicting economic crises before they occur. They will be able to analyze a multitude of different scenarios, with precise predictions and their assessment in record time. Something to keep in mind is that, in this sector, work is being done on technology known as “Quantum Artificial Intelligence”.
2. Telecommunications: Telecommunications companies are carrying out tests on the application of quantum cryptography. This is a new model of communication services. It is a safer model that is expected to be offered to its clients in the near future. Cryptography includes the way in which communications are encrypted. The objective today is to protect these communications from hackers. Communications security is one of the fields in which it can be most useful. Quantum Computing will be a great reinforcement for this.
3. Health Sector: Quantum Computing can be applied to pharmaceutical research, helping to bring their medications to the end user. Nowadays, the pharmaceutical industry invests a lot of money in clinical trials and this investment figure could be optimized by predicting chemical properties and estimating how it will affect human physiology. Two of the great points of the health sector in our century are neurological diseases and neurodegenerative diseases. In both cases, quantum software has the potential to accelerate the development of new treatment drugs. It is also worth noting that thanks to Quantum Computing, medication could also be personalized to a specific person using the method of quantum molecular similarity.
4. Materials Engineering: Companies such as the Spanish “Quilimanjaro” have created cooled metallic circuits that behave like superconductors, which gives them the ability to process a large amount of information. One of its first jobs has been the installation of a refrigerator that generates temperatures below 200 degrees, which provides stability to quantum processing. This allows us to respond to classic problems that traditional computing cannot solve and research opens the door to the study of new materials.
5. Supply Chain or Logistics Sector: One of the most interesting applications of Quantum Computing to the logistics and transportation sector is to optimize traffic flow. In this way, time can be reduced with a focus on the future, automating all the tasks that allow it. When distribution to different points is planned, we will have to be able to minimize transportation time and costs. These types of operations cannot be carried out using a super computer, but we will have to use a quantum computer.
6. Aerospace Sector: The aerospace sector (air routes) is another sector that can benefit from quantum computing. This sector can benefit from the optimization of its air routes, for example.
7. Passenger Transport Service Sector (Taxis or Passenger Transport): Data can be included such as traffic, peak hours, the density of people to be served... In addition to establishing the best places. All this data cannot be managed with a conventional computer, but will need artificial intelligence, big data and quantum computing to get the most out of it. In this way, solutions could be generated where the driver can have an app that connects with the quantum computer, offering information easily, quickly and in real time on their device.
8. Cybersecurity: Like any innovation, there is the possibility that its misuse could pose a problem for our security. A quantum computer could be able to decipher the coded messages that are currently sent between devices, so we need specialists in quantum algorithms to prevent that from happening. There are already initiatives in the field of computer security, which are based on cryptographic models such as those we have discussed in the telecommunications sector, which reinforces the importance of quantum mechanics and the different sectors of activity.
9. Data Analysis: Companies like NASA are researching this technology to analyze the enormous amount of data they collect about the universe, as well as better and safer methods of space travel. On the other hand, it could help solve large-scale problems, such as in topological analysis, where geometric shapes behave in specific ways, describing calculations that are impossible for conventional computers and that will become relatively simple.
10. Predictions: To make predictions and forecast different types of scenarios, we must rely on large and complex data sets. Currently, they are limited to a specific number of factors, where if more were added, it would take much longer to make the prediction. Quantum Computing helps to do this with greater precision, which also means great economic benefits.
11. Search for Patterns: Finding sequences in the data helps us predict future patterns. For example, regarding traffic conditions in advance. Therefore, matching traffic patterns and predicting the behavior of an entire system like traffic is now unthinkable, but with quantum computing everything can change.
12. Other Sectors: The health sectors (as we saw), the environment and the automotive sector will also be affected by quantum processing, especially thanks to the interconnection with other technologies, such as Artificial Intelligence and Machine Learning. We can see this in cases such as Case Western Reserve University, which relies on the basis of this computing to improve the effectiveness of its magnetic resonance devices.
In short, any industry can take enormous advantage of quantum computing. Companies such as Google, NASA, IBM, Royal Bank of Scotland, Biogen, as well as different public and private research centers, are already taking their first steps in applying Quantum Computing to solve their business problems.
Countries That Invest More in Quantum Computing.
Quantum Computing has aroused great interest throughout the world and will undoubtedly have great importance in the years to come, says Vergara. There are already countries that are exploiting this revolutionary technology.
According to a Study for the New American Security, it maintains that China is positioned as one of the great powers in quantum science. Both the European Union and countries such as the United States, Germany, Russia and India have increased their investment in Quantum Computing.
There is international awareness about the strategic importance of this technology for the coming years. For example, the Indian government announced that it will allocate a budget to form a national delegation for quantum applications and technology (2021). On the other hand, the first prototype of a quantum PC was launched in Russia in October 2020.
All of this has led to the appreciation of CIC (Quantum Information Science) which refers to quantum technologies as a revolution in the way information is processed. The CIC aims to apply the quantum properties present in tiny systems to improve tasks such as data processing and transmission, among other applications.
United States versus China: The United States National Science and Technology Council published a new Strategy for the Development of Quantum Information Science in September 2021. In addition, on that occasion he also announced an investment of nearly US$250 million to carry out more than a hundred projects linked to this field of science.
On the other side of the world, in China, something similar is also happening. The Beijing government is building a new National Quantum Information Science Laboratory in Hefei, Anhui province, at a cost of about 65.5 billion yuan, intended to open years ago. Additionally, in 2018 they launched what was called the first quantum communications satellite.
The objective of this satellite is “to achieve quantum communication with the satellite from the ground and to carry out communications between two points on the ground” with a quantum-encrypted signal in which the satellite acts as a repeater between those two points on the ground. The ability to know if information has been intercepted or has reached its destination safely would be impossible to obtain with the information transfer methods we currently use.
Europe's Bet on Quantum Computing: The main use of quantum technologies in Europe goes hand in hand with communications. The main objective of the European Community at the moment is “to apply these technologies in the creation of secure networks". These networks must allow interconnection between European countries, thus being able to have safer networks against hackers. These projects are the best funded in Europe in terms of research funding over the next decade. This reflects that the European Community considers quantum technologies as a priority. Europe is ready to compete with the United States and China.
The initiative aims to place Europe in an advantageous position in terms of quantum technologies. Other funded projects are those aimed at Quantum Physics research. This research is currently being done in laboratories. The goal is for it to reach markets through commercial applications.
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Is it Possible to Apply Quantum Computing Currently?
Creating quantum computers is where all efforts in the CIC field are moving. “Classical Computing, which works in bits, operates information in only two states: 0 and 1". However, as we have mentioned, quantum processors also work with the superposition of both states and use the movement of subatomic particles to process data in quantities that are impossible to handle by classical computing.
Currently, the technology is no longer in a theoretical state, and Quantum Computers the size of Classic Desktop Computers have already begun to be marketed.
This low-cost Chinese quantum computer is nothing like other quantum computers: It wants to look like a PC.
?The prototypes of quantum computers that IBM, Intel, Google, IonQ or Honeywell have, which are five of the companies that are betting most strongly on this technology, do not look the least bit like a PC (until recently). Superconducting and trapped ion qubits, which are the two most advanced technologies currently, need to operate in a controlled environment and under very demanding conditions. Otherwise they will not carry out their purpose, says Juan Carlos López (specialized technological content manager).
The morphology of quantum computers with superconducting qubits in particular is conditioned by the need to develop a cooling system that allows their quantum processor to work at a temperature of about 20 millikelvin, which is approximately -273 Celsius degrees. And yes, it is essential that they operate with the highest degree of isolation from the environment possible and at such astonishingly low temperatures.
This minimum energy level allows them to extend the time during which the quantum states of the system are maintained, and, at the same time, also postpone the moment in which quantum decohernetia appears. Quantum states are maintained for a limited period of time, and this time is precisely the time we have to carry out quantum logical operations with the qubits of our computer. Once overcome, decoherence appears and quantum effects disappear, so the quantum computer begins to behave like a classical computer.
What the SpinQ Triangulum Quantum Computer is and what it is not: Before moving forward, it is worth stopping to rethink something important to quantum computers. They are not good at solving the same range of problems that we can face using a classic super computer. Scientists are convinced that fully functional quantum computers that, if everything continues, will in the future solve only a portion of these problems.
They will be good at simulating quantum systems, such as small molecules, macromolecules or materials. And also the optimization problems that seek to work with a cost that we want to minimize. Or those of stochastic physics, which take advantage of the random nature of quantum hardware to simulate, precisely, random processes. However, nothing tells us that they will be useful for office automation or content creation. Not even for other more “serious” tasks such as working with databases or processing large amounts of information.
All this invites us to wonder how SpinQ has managed to develop such a compact quantum computer and also what it is for. The first key is given to us by its qubits, which, unlike those used by IBM, Google or Intel, “are not superconductors”. They are implemented to take advantage of the possibility of measuring the spin states of certain atoms of a molecule using nuclear magnetic resonance (NMR) techniques. A brief note: spin is an intrinsic property of elementary particles, as is electric charge, derived from their angular rotation momentum.
This strategy has allowed this Chinese company to develop reasonably simple qubits, which can also operate in relatively undemanding environmental conditions. It is a mature technology that has been known for more than two decades. In fact, the quantum computer that first ran Shor's quantum number factorization algorithm used it. This happened in 2001. However, these qubits are very sensitive to noise, so this technique is not appropriate for fine-tuning quantum processors with many qubits.
“NMR qubits are simpler than trapped-ion superconductors, so developing them is cheaper".
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Another advantage of NMR qubits is that they are much simpler than superconducting or trapped ion qubits, so they are cheaper to develop. SpinQ claims on its website that its Gemini and Gemini-Mini quantum computers, both with two qubits, and Triangulum, which, as we have seen, has three qubits, are low-cost quantum computers. It makes sense that they would be much cheaper than quantum computers with superconducting qubits from IBM and Google, and also than ion trap computers from Honeywell or IonQ. Even so, they are much more expensive than our PCs. In fact, Triangulum, the most advanced of these compact quantum computers, costs approximately 56,000 euros.
There is a question that we have not yet investigated: What are these “cheap” and compact quantum computers for? SpinQ proposes using them to train students interested in quantum computing, and also to address some simple scientific problems. Two and three qubits do not go far, so it is evident that this quantum hardware has a very limited scope of application.
In the field of research, computers with superconducting qubits from IBM, Intel or Google are much more interesting, which have several dozen qubits (hundreds even if we stick to IBM), but, even so, in the field of teaching the SpinQ teams make sense. In fact, some of its clients are universities spread all over the planet.
If you want to see one of these quantum computers live, I recommend the following video of a report from a Chilean television channel, covering the arrival of the first desktop quantum computer to Chile.
IBM Recommendations for Companies to Start Preparing for the Age of Quantum Computing.
Quantum Computing is approaching a commercialization phase that can change our world. Early adopters of quantum technology's unique ability to solve certain types of problems can make breakthroughs that enable new business models.
Visionary organizations are already aligning themselves with the emerging quantum computing ecosystem to become “quantum ready". These forward-thinking companies are exploring use cases and associated algorithms that address complex business problems.
Companies may need to act now, so IBM provides five recommendations to move your organization down the path to quantum-enabled business advantage.
The Quantum Revolution: Since quantum mechanics describes how nature works at a fundamental level, quantum computing is well suited for simulating similar processes and systems. Quantum computing takes advantage of the laws of quantum mechanics found in nature and represents a fundamental change from classical information processing.
Two properties of quantum behavior (superposition and entanglement) may allow quantum computers to solve problems intractable to today's conventional or classical machines:
The quantum properties of superposition and entanglement help quantum computers quickly explore a huge set of possibilities to identify an optimal response that could drive business value. As future quantum computers can calculate certain answers exponentially faster than today's classical machines, they will make it possible to address business problems that are exponentially more complex. Despite the limitations of classical computers, quantum computers are not expected to replace them in the foreseeable future. Instead, “hybrid quantum-classical architectures that outsource parts of difficult problems to a quantum computer” are expected to emerge.
Quantum Computing seems set to potentially transform certain industries. For example, current computational chemistry methods rely heavily on approximation because exact equations cannot be solved with classical computers. But quantum algorithms are expected to provide accurate simulations of molecules on longer time scales, currently impossible to model accurately. This could enable life-saving drug discoveries and significantly limit the number of years needed to develop pharmaceutical products.
Furthermore, the anticipated ability of quantum computing to solve today's incredibly complex logistics optimization problems could lead to considerable cost savings and a reduced carbon footprint. For example, consider improving the global routes of the trillion-dollar shipping industry. If quantum computing could improve container utilization and shipping volumes by even a small fraction, this could save shippers hundreds of millions of dollars. To leverage the advantages of quantum computing over their competitors, forward-thinking companies are already developing expertise to explore which use cases can benefit their own industries.
The Dawn of Quantum Advantage:
The time when quantum computers can solve some business problems that classical computers cannot (often called the “Quantum Advantage” appears to be near. For example, “constant depth” quantum circuits have already been shown to be more powerful than their classical counterparts.
It is not known exactly when the quantum advantage will occur for a specific use case, causing market forecasts to vary widely over the next five years from US$500 million to US$29 billion.
The challenge of Quantum Computing ecosystem is accelerating in anticipation of the opportunities that the new technology will create. Startups and partnerships between researchers and technology providers are emerging to translate quantum research into capabilities suitable for the business world. Technology companies developing quantum computers “are already partnering with companies to identify potential use cases, develop quantum algorithms, and test solutions on real quantum computers”. This rapid growth in enterprise engagement with quantum technology will accelerate the arrival of the first commercial applications.
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Selecting the Right Quantum Computer for Your Business.
Not all quantum computers are the same or solve the same problems. From the most limited to the most versatile, quantum computers generally fall into three categories:
a) Quantum Annealing:
b) Noisy Intermediate Scale Quantum Computing (NISQ):
c) Universal Fault Tolerant Quantum Computing:
The consensus of the scientific community is that “quantum annealing” will not offer a significant speedup over classical computing. Furthermore, quantum annealers are not on the development path leading to universal fault-tolerant quantum machines.
As a result, quantum annealers cannot be considered true quantum computers.
In the short term, NISQ computers have the greatest potential to offer commercial advantages and many new algorithms are being adapted for them. Furthermore, as NISQ computers grow, they move toward the ultimate goal of quantum computing: a universal, fault-tolerant quantum computing that can handle important classes of business and scientific problems, often exponentially faster than a classical machine.
Future Impact: Why Your Organization May Need to Act Now:
Why address Quantum Computing now? Technological and competitive forces are ushering in the Quantum Age sooner than one might expect. Organizations that pay attention today could snatch industry leadership from those that don't. Here are three reasons why companies are considering preparing for quantum technology now:
- Quantum computers have the potential to transform industry value chains, particularly in the areas of chemistry, biology, healthcare, materials science, finance and artificial intelligence.
- Due to the steep learning curve of quantum computing, a fast follower approach can only produce stragglers who have spent too much trying to catch up.
- The construction of a “Quantum Competence Center! Internal” will take time.
Quantum Computers have the potential to transform industry value chains: Quantum Computers are expected to transform industries because they have the potential to address exponentially complex problems that classical computers cannot.
Future quantum computers could help achieve product advancements in areas such as chemistry, biology, healthcare, finance, artificial intelligence and materials science, enabling rapid growth in market share and greater profitability for the visionary companies that adopt them. In this way, the problem-solving capabilities of quantum computing could dramatically redefine competitive advantage, transforming business operating models and value chains that will revolutionize entire industries.
For example, the optimization of logistics systems is often based on a “hub and spoke” network model. The problem of optimally designing individual point-to-point routes that satisfy various requirements in a large-scale logistics network is very complex and can quickly fall beyond the reach of classical supercomputers. If all the possibilities of such an optimization problem were explored, it could take billions of years even with a few hundred terminals in the network. Quantum Computing could explore the space of possibilities much faster. For example, in the context of airline schedule optimization, quantum computing can create ad hoc daily flight schedules, specifically designed for the thousands of passengers flying to hundreds of destinations on a specific route, reducing flight time. customer travel, air traffic congestion and airline fuel costs.
A Fast Track Approach can only produce stragglers who have spent too much. Unlike a more linear or incremental technological advancement, a follow-on approach is less effective in adopting quantum computing. This is due to:
- The steep learning curve of quantum computing.
- Excessive costs associated with “catch-up”.
Let's consider a use learning case that a quantum computer could solve exponentially faster than a classical computer: Design a material specially designed for the electronics or transportation industry that is significantly lighter and stronger than current substances. Accelerated development of such a revolutionary material would position a manufacturer to surpass its competitors in a short time. Moving up the learning curve, this new “quantum-enabled” market leader could quickly gain a growing advantage over its competitors by refining its innovative material, as well as expanding into new custom materials for other applications.
While hypothetical, this example illustrates how a steep learning curve could make it extremely difficult for even so-called fast followers to quickly catch up with early adopter companies, which could result in winner-take-all scenarios. It takes everything in certain industries.
Even if catch-up were possible for a specific use case, it would likely be associated with exorbitant costs related to, for example, purchasing in-house expertise, gaining access to increased infrastructure, funding advantageous partnerships, and/or acquisition of a company with necessary capabilities.
Building an Internal Quantum Competence Center will take time. Although most companies have already heard of quantum computing, many do not have the talent or experience necessary to take advantage of their impending business transformation, and acquiring it will not be easy. The supply of talent in quantum computing is limited and there is fierce competition for qualified resources. Once the right people come on board, it will likely take years to develop a deep understanding of the potential impact of quantum computing is limited, and there is fierce competition for qualified resources.
Once the right people come on board, it will likely take years to develop a deep understanding of the potential impact of quantum computing on a given business. Recent technological changes, such as the nearly decade-long migration to graphics processing units (GPUs) to accelerate big data workloads, underscore the time it takes to build competency when adopting a new technology.
Given quantum technology's potential for radical industry transformation, its exponential problem-solving capabilities, and the difficulty in obtaining qualified quantum resources, leading companies should consider acting now.
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Seizing Quantum Advantage for your Business.
What could the commercialization of quantum computing mean for your business? In the short and medium term, quantum computing could confer commercial benefits in three areas: quantum simulation, quantum optimization, and quantum-assisted machine learning.
- Quantum Simulation: Because quantum mechanics describes how nature works at a fundamental level, quantum computing is well suited for modeling processes and systems that occur in nature. This powerful capability could open the door for electric car makers to develop longer-lasting batteries. New biotech companies could quickly develop drugs tailored to an individual patient. Electrical energy transmission costs could be reduced. Fertilizers could be manufactured more efficiently, with interesting implications for growing food around the world.
- Quantum Optimization: The art of solving optimization problems involves finding the best and “optimal” solution in a situation where there are many possible answers. Let's take the example of creating a package delivery schedule. Mathematically, there are more than 3.6 million possible combinations to schedule ten deliveries in adjacent time slots. But what schedule represents the optimal solution given several variables such as the time requirements of recipients, potential delays, and the shelf life of the goods transported? Even when approximation techniques are applied, the number of possibilities is still too large for a classical computer to explore.
As a result, classical computers today take extensive shortcuts to solve optimization problems of significant size. Unfortunately, your solutions are often likely to be suboptimal.
Companies that could benefit from quantum optimization include:
- Telecommunications companies updating their network infrastructure.
- Healthcare providers optimizing patient treatments.
- Governments improve air traffic control.
- Consumer products and retail companies that tailor marketing offers.
- Financial services companies that improve their risk optimization.
- Organizations that develop employee work schedules.
- Universities scheduling classes.
Although no one has yet presented a mathematical proof confirming that Quantum Computing will confer an exponential speedup to optimization problems, researchers are working to prove it heuristically. Forward-thinking companies are already exploring, solving optimization problems using quantum computing in their quest to stay ahead of their competitors. Their foresight may turn into an advantage after the first demonstrations of quantum advantage in optimization are confirmed.
Quantum Enhanced AI: Given its ability to explore a large set of possibilities that a classical computer cannot process, quantum computing could expand the capabilities of AI (Artificial Intelligence). In fact, a symbiosis between AI and Quantum Computing is beginning to generate a virtuous circle of advancement in both fields. For example, quantum algorithms can improve machine learning in the area of data clustering, while machine learning can be used to improve and understand quantum systems.
Quantum-enabled cognitive computing could eventually permeate virtually every industry, providing professionals with advanced and proactive decision-making support, employees with targeted and responsive training, and customers with uniquely tailored and adaptable supplier relationships.
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Step into a Quantum Future with these Five Strategies.
Companies that adopt NISQ early could outperform their peers by dramatically innovating their operating models and creating unique products. If you want to be ahead of the curve, now is the time for your business to be quantum-ready.
1. Select your Quantum Champions: Your organization likely needs to learn more about the potential benefits of quantum computing. Here's how to get started:
- Designate some of your top professionals as “quantum champions”.
- Task your quantum champions with understanding quantum computing, its potential impact on your industry, how your competitors are responding, and how your business could benefit.
- Have your quantum champions regularly report to senior management to educate the organization and align progress with strategic objectives.
2. Start Identifying Quantum Computing Use Cases and Associated Value Propositions: Once your quantum champions understand how quantum computing works and how it could address their business challenges and opportunities, ask them to start identifying specific areas where quantum computing could propel your organization ahead of your competitors.
Evaluate opportunities based on the unique capabilities of quantum systems and their ability to accelerate benefits. Have your quantum champions monitor progress in developing quantum applications to track which use cases can be commercialized sooner. To help ensure your quantum exploration is linked to business outcomes, select your most promising quantum computing applications, such as creating innovative products and services or new ways to optimize your supply chain.
3. Experiment with Real Quantum Systems: Demystify quantum computing by trying a real quantum computer.
Get your quantum champions to understand how quantum computing can solve their business problems and interact with their existing tools. A quantum solution may not be suitable for all business problems. Its advocates should focus on solutions for their highest-priority use cases that classical computers are virtually unable to solve.
4. Chart Your Quantum Course: Build a quantum computing roadmap, including viable next steps, to address problems that could create formidable competitive barriers and sustainable business advantages. To accelerate your organization's quantum readiness, consider joining an emerging quantum community. This can help you gain better access to technical infrastructure, evolving industrial applications, and researchers who can enhance your development of specific quantum applications.
5. Be Flexible About Your Quantum Future: Quantum computing is evolving rapidly. Look for technologies and development toolsets that are becoming the industry standard and around which ecosystems are coalescing.
Please note that new developments may cause you to adjust your approach to your quantum development processes, including changing your ecosystem partners. Be aware of how your own quantum computing needs may evolve over time, particularly as your understanding of which business problems can benefit most from quantum computing solutions improves.
Is Your Organization Ready to Capture Quantum Technology?
Advantage? There are business problems that Classical Computers cannot (and never will) solve. Now is the time to get quantum ready to position your company for future quantum advantage.
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What is the current level of awareness and knowledge on the quantum topic in your organization? How could your industry, and specifically your value chain, be disrupted by quantum technology?
Computing? What simulation, optimization, or machine learning problems are critical to your company's competitive advantage?
What use cases for quantum computing would provide the most commercial and competitive value to your company?
Which use cases for quantum computing will deliver the most commercial and competitive value to your company? What if your competitors capitalize on quantum solutions before you?
Do you know which quantum business model fits your Value Offering/Target Segments?
Business Models in Quantum Computing.
Until now, quantum computing was not affordable for many business sectors, since there was not much quantum equipment for sale. In most cases, they only had this type of systems available in large technology companies, companies specifically dedicated to quantum computing, and specialized research centers. Its price was prohibitive for the vast majority of companies and organizations.
Quantum computing gradually evolved from a theoretical possibility to a commercial reality. Working quantum computers are now available in many countries. Dozens of quantum programming languages, simulators, and quantum computers are used by businesses and end users through cloud services, provided by companies such as IBM, Amazon, Google, Microsoft, and D-Wave.
The use of Quantum as a Service has increased. Small businesses provide quantum services to companies seeking to integrate quantum computing into their core business. Software-focused companies like 1Qbit, ARQIT, SandboxAQ and Multiverse Computing offer quantum-related software, training, and services.
The quantum industry consists of an ecosystem composed of corporations, academic institutions and public institutions. Public investment worldwide in a variety of quantum technologies has amounted to US$30 billion in the last decade. This investment is mainly aimed at defense and national security solutions in countries such as China, Japan, India, the United States, the United Kingdom, Germany and Canada.
Private investment is also growing rapidly with global investment of US$5 billion and an accelerated shift from venture capital to IPOs and SPACs (special purpose acquisition companies), indicating the sector is maturing.
The industry's supply chain is diverse and comprises approximately one thousand companies. These companies are classified into five different groups:
Component Manufacturers: About 40 vendor suppliers, such as Oxford Instruments and Bluefors, produce materials, devices and processes used in quantum hardware, such as cooling, etching, measurement, wiring, controllers and software.
Hardware Manufacturers: About 50 quantum hardware manufacturers develop two main types of quantum processors called analog quantum machines (including annealing systems) and universal quantum computers designed to be versatile and scalable. IBM and Google are dominant players in this space.
Systems Software: This sector comprises approximately 40 dominant companies. Leading systems software vendors and their core platforms include Orquestra de Zapata, a hardware-agnostic software platform that helps companies enhance computationally intensive solutions for models such as Generative AI and Monte Carlo simulations.
Application Software: Approximately 70 companies, such as Multiverse Computing and ProteinQure, offer software as a service to solve business problems by improving R&D and materials design.
Services: Around 40 companies like Zapata offer professional services in the quantum industry and have partnered with quantum service providers to explore applications of quantum computing. Deutsche Bahn has partnered with Cambridge Compuing to optimize train scheduling and increase network capacity.
With the industrial innovations generated by Quantum Computing, organizations are transformed through technological improvement, operational efficiency, speed in product development, improved employee productivity and better service delivery, among others.
It is evident that the Quantum Computing industry and its practice is moving in several directions, and the growth that typically accompanies it presents unprecedented challenges.
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Market access and monetization will determine the market winners. Startups and quantum applications are competing to generate commercial applications that provide a high return on investment in the current tighter capital market conditions. Success stories include quantum algorithms that improve the discovery and design of new molecules and materials, the optimization of complex aviation and automotive systems, accelerated training in machine learning algorithms or improvements in existing AI, blockchain and cryptography. Companies are aligning themselves with the right partner that has a solid business framework.
This is how today you can access its quantum computing power, for example, following a business model known as “Quantum Computing as a Service (QaaS)”, “Interdisciplinary Collaboration Approach”, “Direct Sales”, ...
· Quantum Computing as a Service (QaaS): With this system, organizations that have quantum computers offer developers, researchers and companies that need it a platform to develop and test algorithms on real quantum computers. They do it through the cloud. Access to these quantum computing machines can be very expensive even for companies, but in some cases they are offered free to developers and academic institutions dedicated to research.
· Interdisciplinary Collaboration Approach: Highlights this business model between quantum physicists, computer scientists and experts in the field to promote quantum applications, as well as the combination of classical and quantum computing in hybrid computing to solve problems in a practical way.
· Direct Sales: As we saw in the case of SpinQ, it has begun to sell 2-qubit NMR Desktop Quantum Computers; Gemini-Min (2-qubit Portable Quantum Computer), Triangulum (3-qubit Desktop Quantum Computer), Triangulum-Mini (3-qubit NMR Desktop Computer), among other quantum computer providers.
By 2023, accessing quantum computing resources could cost between US$1,000 and US$2,000 per hour of access through the cloud. But although it seems like a lot, we must keep in mind that buying a quantum computing hardware system to install locally can involve an investment of between US$20 million and US$40 million. An amount within the reach of very few. Therefore, “if you need access to a quantum computing system, it is better to opt for a QaaS model”. At least for the moment.
i) Alibaba Cloud: The cloud division of China's Ailbaba offers access to an 11-qubit quantum computer through its cloud services. Of course, the platform is only open to scientific researchers. The general public can learn the basics of quantum computing, provide data about it on the cloud platform and interact online with scientists.
ii) Amazon Braket: Amazon Braket users can test their algorithms on a local quantum simulator. Additionally, they can use the service's software development kit to develop quantum applications and test them on Braket. They can also develop and test their quantum algorithms.
iii) Azure Quantum: Microsoft's cloud division, Azure, also offers its own Azure Quantum QaaS service. Through it it offers cloud-based access to algorithms created by both Microsoft and 1QBit. The Microsoft Quantum Computing kit from Redmond includes chemistry, numerical and machine learning libraries.
iv) D-Wave Leap: It is a cloud quantum computing service with which developers can gain access to a cloud-based quantum processor, with which they can test and evaluate the operation of applications in the testing phase and do so also in real time. On the other hand, developers can use its hybrid solving service, which combines classical and quantum resources, and which aims to facilitate the solution of computational problems.
v) Google Quatum AI: This service offers researchers access to its quantum computing hardware allowing them to run their quantum programs on Google quantum processors. Within it is Google Ciro, an open source quantum computing platform that allows users to develop and test different algorithms.
vi) IBM Quantum: IBM's quantum computing system offers a 127-qubit processor, and the Qiskit quantum development kit. With it it is possible to develop and deploy quantum computing applications. Its users can, with both systems, develop and execute even quantum computing circuits.
vii) Ion Quantum Cloud: The Ion Quantum Cloud service offers access to your quantum systems through the Quantum Cloud API. Those responsible point out that their system is compatible with all the main quantum software development kits, such as Qiskit.
viii) QC Ware Forge: This company offers quantum computing engineers circuit development blocks, with which they can create and run algorithms for data scientists, financial analysts and engineers. It focuses on tasks related to binary optimization, linear algebra, Monte Carlo methods and machine learning.
ix) Quantuum AI: Quantinuum's Artificial Intelligence platform integrates quantum natural language processing, cloud-based quantum machine learning services and quantum deep learning. Additionally, the company offers a quantum computing software development kit. It is called TKET and is used to generate and execute programs for gate-based quantum computers.
x) QuTech Quantum: This company claims to be the first in Europe to offer public access to a quantum computing platform. It features a 2-qubit semiconductor electron spin processor, 5-qubit superconducting Transmon processor, and three simulators. The platform integrates with IBM's QisKit.
xi) Terra Quantum: This company, based in Germany, offers its users access to a library of algorithms with uses ranging from hybrid quantum optimization to quantum neural networks. In addition, it has high-performance simulated quantum processing units, and solutions for establishing secure quantum and post-quantum communications.
xii) Xanadu Cloud: This entity offers its users free access to photonic quantum computers, as well as software and support. It has a free plan, which offers its users free credits for running small workloads on its Borealis quantum hardware. In addition, it offers a full stack Python library to develop, simulate and run programs on photonic quantum computers.
Final Words.
As we can see, new technologies for new problems and needs involve new value propositions for society. It has always been this way, and it will continue to happen. That is why in the case of Quantum Computing technology it will not be the exception.
In this short journey, we have seen how quantum technology has been making its way through startups and technology companies that have been testing ways to make the commercialization of this technology viable to make it reach the customer and user segments described in this publication.
These business models reflect the diversity of approaches and strategies that companies are adopting to harness the potential of quantum computing in different sectors and applications. However, this does not mean that, with the combination of other emerging technologies such as Artificial Intelligence, Blockchain, among others, it will generate new business models (and combinations of them) that make the use of this technology easier and more feasible in the future. for humanity (Will Quantum Computing Begin To Be Tokenized?, for example), in terms of new requirements that Quantum Computing can cover and satisfy.
Whatever happens, it is expected that this evolution will be rapid and disruptive, so we must be aware of its development and outcome in the short and medium term. In my vision it will happen sooner rather than later!
(This is a reading material for the Course "Emerging Technologies" by Hugo Céspedes A.).
Nota:
If you want to delve deeper into the topic of Quantum Computing, I recommend you read: