By: Sachin Jain, Principal Director - Consulting, Global Technology Office, LTIMindtree

Everybody, from financial houses to the media and entertainment industry, wants to ride the Quantum Computing bandwagon. CIOs and CXOs across the globe are looking to find ways to invest in Quantum Technology and explore business frameworks that can maximize their ROI. This blog explores how organizations can get started in Quantum Computing and what key factors they must consider before investing in this technology.

Based on accelerated development in the field of Quantum Hardware and Software, commercial Quantum Computing systems and services will become viable sooner than later. It’s difficult to predict how Quantum Computing will find its application in industrial use cases, but businesses can’t afford to postpone their plans and investments until it does.

CIOs and CXOs should consider how it would encourage digital investment, change sectors, and spark innovation. It won’t make or break your organization in the short-term, but understanding quantum applications now is critical for setting your company to reap the benefits over the next decade.

Introduction to Quantum Computing

Quantum Computing and its solutions will significantly enable your organization to speed up its response to external events or perform simulations that competitors cannot match. It can optimize transportation and shipping routes in the face of changing conditions, discover new materials, and quickly evaluate option pricing with the highest accuracy.

In the coming years, Quantum Computing is expected to significantly influence many businesses, especially in AI, Machine Learning, Cryptography, and Optimization. Gartner has rated Quantum Computing as one of the most disruptive technologies of the decade and reports that 40 percent of large companies are planning to create initiatives around quantum computing by 2025.

Organizations worldwide are organizing teams to investigate early uses of Quantum Computing, spurred by the realization that they cannot afford to fall behind. Governments see Quantum Computing as a critical technology and are investing billions of dollars in centers of excellence, research funding, and public-private collaborations.

Why are Quantum Computers so Fast?

Quantum computers are fundamentally different from traditional computers. Although both try to solve problems, they analyze data differently. In conventional computing, operations are performed using binary bits. This means the bits are either 0 or 1, true or false, positive or negative. Quantum computers employ quantum bits, known as qubits, which can be a simultaneous combination of 0 and 1.

A 10-bit classical computer can store and evaluate one of 1,024 values at a time. A 10-qubit-quantum computer can keep a combination of 1,024 values and examine these 1,024 possible values simultaneously. A 20-qubit-quantum computer can evaluate a million choices simultaneously. A 300-qubit computer can evaluate more choices than the universe’s atoms. Thus, quantum computers have the potential for exponentially faster processing. (Source: Australian Academy of Science)

Market Overview

Quantum Computing is still in its infancy, but by acquiring a perspective on the market potential and opportunity horizon, organizations may predict where quantum computing will have a significant impact.

According to the BCG, quantum computer manufacturers will generate $5 Bn to $10 Bn in sales over the next three to five years. Statista reports that the Quantum Computing industry will expand at a CAGR of 43 percent over the next decade. The worldwide Quantum Computing sector might be worth $9 Bn by 2030.

According to Pitchbook data, VCs globally have invested more in the Quantum Computing industry in 2021 than in the previous three years combined. Although the technology may not be ready and may take some time to outperform traditional computers, investors are betting that real-life applications will emerge sooner. Source: VC Deals in Quantum Computing, Pitchbook

China and European Union lead significantly in funding Quantum Computing investment. The Government of India has set in motion programs such as Quantum Enabled Science and Technology (QuST) and the National Mission on Quantum Technologies and Applications (NMQTA), leading the development of institutions and projects. Under the NMQTA program, India has a five to seven year goal of developing about 25,000 human resources across software, hardware, and allied tech. The Government has planned an outlay of $1 Bn to advance progress in various fields of Quantum Technologies. It has also planned to develop a 50-qubit-quantum computer by 2026.

Fast Approaching Quantum Computing Era

Gartner’s hype cycle has Quantum Computing at the top, with the most significant expected market and most participants. The Quantum Technology industry’s fastest-growing sector, hardware manufacturing, is where most investments are being made.

Companies currently spend over $40 Bn each year on high-performance computers. If quantum computers can execute some of these tasks faster – or much faster, there is a possibility for quick ROI in a particular industry. Experts believe that quantum computers and algorithms must be classified as quantum accelerators since they may help firms in various industries gain new efficiencies, savings, and speed to become more successful and competitive.

Growth Timeline for Quantum Computing

There are various methods to gauge a quantum machine’s potential, and one standard metric is the number of qubits (quantum bits). More qubits enable the execution of more complex algorithms with more inputs and functionalities.

According to IBM’s plan for Quantum Computing, for example, the number of qubits will go from 27 in 2019 to 127 in 2021 to over 1100 in 2023, which is a quicker rate of development than Moore’s law for conventional computers. When combined with the appropriate software environment, such advancement would enable a wide range of applications. Source: Research, IBM.

We are currently in the Noisy Intermediate-Scale Quantum (NISQ) era, where the number of qubits is small (100-150 qubits), and lack the error correction to perform complex computations but is large enough to demonstrate the quantum advantage. In 2021, IBM unveiled its 127-qubit Eagle quantum computer. They are the first to break the 100-qubit barrier mark.

Corporates are also showing interest in Quantum Computing. BCG believes three factors are driving the interest.

Technical Achievement – Google is declared to have achieved ‘Quantum Supremacy.’

Timeline Clarity – The technology providers now have a clear roadmap with milestones set along the path to quantum advantage.

Use case development – Businesses have started exploring and defining practical use cases for the technology.

Quantum Computing could create value between $450 Bn to $850 Bn in the next 15 to 30 years. BCG estimates that quantum optimization applications in finance, logistics, and aerospace alone could generate up to $220 Bn in annual revenue once Quantum Computing Technology matures. Source: Boston Consulting Group

The following table shows the value creation potential for Quantum Computing across different areas and the range of value in priority use cases once the technology is mature.

Table 1: Potential value creation areas (Source: BCG)

Impact of Quantum Computing on Enterprises

LTIMindtree believes that very few companies will create or own quantum computers in the foreseeable future. Instead, we can expect the emergence of a cloud-computing-style paradigm in which corporations rent access to quantum computers and solutions housed by a few specialized providers. The business model will be like companies that purchase cloud-computing services from AWS, Google Cloud, and Microsoft Azure. Quantum computers will not be employed in isolation but as part of a hybrid system where tasks will be given to the most appropriate machine (quantum or traditional).

Quantum Computing cloud architecture will provide resource sharing and generate economies of scale that reduce prices and improve access, which would, in turn, spur demand and quicken development. Algorithm designers can test and refine their theories as quantum hardware and software advance. They won’t have to wait years between developing an algorithm and testing it on a working computer, allowing them to improve upon current ones and build new ones.

Quantum algorithms are substantially different from the algorithms used by traditional computers. Those most likely to be applied to business operations fall into the below categories; some will allow us to do ordinary chores considerably faster, while others will allow us to capture whole new chances.

Table 2: Key Application areas (Source: Deloitte)

How Can Enterprises Build Quantum Computing Capability?

Quantum Computing has applications in various use cases across industries. Building a capability in Quantum Computing can open many possibilities for a services-based company. It will enable organizations to easily solve business problems for their clients, such as simulation and optimization, which are currently much harder for traditional computers to solve.

Organizations need to focus on four key areas to build a quantum computing capability.

• Hardware
• Software
• Simulators
• Talent

As Quantum Computing is still a nascent field, there is ongoing research on building the best hardware and most efficient algorithms. Some technology firms have made considerable investments in building the hardware. Companies can partner with these firms to access the hardware over the cloud and start building algorithms.

Some of these firms also offer development kits and have created programming languages for writing programs on quantum hardware. Additionally, some firms provide quantum simulators that run on traditional computers. Companies can test their algorithms and programs on these simulators before running them on actual Quantum Computers. To train its talent, companies can partner with research institutes and universities active in this space.

Conclusion

The present constraints of Quantum Computing should not deter enterprises from looking at the potential to address critical issues and establish new businesses. Quantum Computing represents a breakthrough for some complex operations, and current technological advancement will likely create hybrid cloud architecture through the orchestration of bits (traditional), qubits (quantum), and neurons (AI-assisted programming).