No hype, all facts - Quantum Computing for business
What business executives need to know about Quantum
This May Honeywell officially announced that it is working on quantum computing hardware. Not only did they go public with their long rumored efforts, they also staked their claim to be leading that space against IBM, Google and others with their approach of trapped ion (versus superconducting for most other vendors) - an approach that is less proven but theoretically more scalable, less error prone and has been gaining tremendous traction over the past year or so. Why should you care? This announcement adds another formidable industrial vendor to the offering (competition is good), diversifying the field of credible efforts. It's also the most credible and well funded effort on trapped ions (Microsoft, what do you say?), which is exciting but so far failed to show results. Time to partner with Honeywell?
We published a Quantum Computing Matrix of all large vendors last year, which is due for an update this summer - compare the large vendors based on facts and analysis State of the vendors
BMW Group is actively working on QC's (Quantum Computing) solutions for their mobility group. In fact, they started by cooperating with QCWare, a startup, around experimenting with QC. They then, based on the learnings, developed a portfolio of relevant use cases. Currently, they are in the process of prioritizing these, as to implement the first ones by the end of 2019. Why should you care? For BMW, quantum computing is a logical consequence of digitization - with the tools, processes and data now available, they can truly focus on delivering breakthrough solutions with new computational models.
The list of QIS (Quantum Information Science including applications in Quantum Communication, Quantum Sensing, Quantum Key Distribution aka encryption) use cases is growing. Check it out! Why should you care? Because if you are not figuring QIS out, your competition will.
Not surprisingly, the big consultancies are waking up to the potential of QIS and BCG is leading the charge with a nicely framed and referenced effort to identify where quantum will add value. BCG counts one of the foremost strategic thinkers on QIS amongst its senior ranks, who clearly knows what he's talking about. Why should you care? Because you surely have been or will be approached by the large consulting houses on QIS projects and you MUST check their credentials in this space, as QIS is not something that you can learn in a weekend seminar (it's just too hard). Look for advisors who combine deep technical & scientific understanding with true business acumen and real world experience.
What investors need to know about Quantum
Congratulations to Zapata Computing who raised $21M. Why should you care? For a couple of reasons. First, besides angel investors we see large VC's emerging as increasingly putting their money into QC. Even more interestingly, the capital arms of large industrials (Bosch, Comcast, BASF) are leading these rounds, which goes to demonstrate how seriously large corporations are taking this technology. Also, Zapata is not your typical QC company, doing "sexy" hardware in crazy cold environments. Instead, they are focused on developing quantum software and algorithms that will enable companies to actually use QC's when they are sufficiently mature. A clear sign that the big players are getting ready to run their innovations on QC hardware when d-day gets here.
Long term investors with a desire for high alpha have to consider the QIS space. Why should you care? Because big technology bets such as the advent of electricity, the creation of the internet or, well, QIS, come about once in a generation at best. QIS will define new industries, new categories and new wealth.
Rigetti, the ambitious full stack QC startup, is looking to raise another large round of funding on top of there estimated $120M already raised. Why should you care? For two reasons. First, this shows there is a huge appetite in the market for QC investments (Rigetti is rumored to be knocking on many and every investor & angel door) to go along with the significant capital needs to compete. Second, while I am not foolish enough to try and call a bubble, this shows that QC is creeping into the (investor) mainstream, and Rigetti is potentially trying to prevent a capital crunch of any potentially upcoming recession.
Most business executives are still watching QIS applications from the sidelines, confining any potential efforts to their research labs or innovation groups. This will be a mistake to regret - take my word for it. Unlike A.I., blockchain, digitalization or whatever fad of the last 2 decades, this is not a race that you can join mid-course. Why should you care? Every S&P 2000 business will be disrupted beyond recognition by QIS within the next 10 - 15 years as QIS fundamentally transforms anything related to data, moving goods, new materials, compounds, molecules, models of any kind (financial, ML, etc). Yet, it is a technology so profoundly different that you need to hire for it now, experiment and fail with it before it comes to market, prepare your new algorithms and revenue models - once relevant QIS applications hit the market there is a significant risk that they will create winner take all scenarios across entire industries and regions.
What Americans need to know about Europe in Quantum
The European QC project, OpenSuperQ, led by the fantastic Professor Frank Wilhelm-Mauch from Saarland University in Germany, is currently running a survey to get input and feedback from the user community. Why you should care? Because this is a typical European approach to innovation that allows those without the real deep pockets to contribute and participate. If you are interested in QC but are not Pfizer, Goldman Sachs or BMW, then OpenSuperQ is a democratic option to enable your innovation.
Quantum Communication is one of the most exciting, and imminent, QIS applications that is being hotly pursued in China, Australia, parts of the US and The Netherlands. In fact, the Dutch are leading this area and are preparing to roll out a quantum internet. Why you should care? Because the US, especially the military complex, has so far taken a very cautious approach to quantum communication, which enables completely secure, fully controlled and entirely independent communication protocols. This crucial area of QIS is not only being innovated overseas, but also rapidly implemented. Watch and learn.
What Europeans need to know about North America in Quantum
In true American fashion, the US government is pushing full speed ahead with QIS initiatives. On May 31st the White House conveyed a panel of 20 experts to discuss the future of QIS. Why you should care? .... Signaling further federal funding... even more cooperation
The National Science and Technology Council Subcommittee is currently soliciting responses to a RFI on the future of QIS. Why you should care? The stated goal is to take the "quantum leap". This is important because by now the US not only recognizes the need to be a leader in QIS, but openly says so at the highest government level. The tech war is on!
The SciFi corner... just for fun!
Quantum Computing and QIS sounds like fiction to some and, surely, our friends from the SciFi world of comics and movies are far ahead of scientists and users. In fact, the most successful box office opening of all time, The Avengers, Endgame, makes liberal use of quantum physics concepts. The main character ends up in the quantum realm, quantum fluctuation and planck scale are addressed, time travel based on quantum entanglement works flawlessly, superposition is basically everywhere, and an IBM movie pre-screening for some of their quantum computing VIPs topped it off.
The new quantum world is a hit indeed; join us in it, we are building it now.
Thank you for reading, I would love to get your feedback, praise and scolding (when so deserved) - please share any questions, ideas, changes, corrections with me at andre@estrapadus.com or on www.estrapadus.com - quantumly yours, André
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Some of our market research
- Quantum Computing, non technical introduction LINK
- NYC QC ecosystem overview LINK
- The Quantum Computing vendor quadrant LINK
- QIS landscape report LINK
- QIS cognitive market analysis LINK
What is new and noteworthy in Quantum Computing and QIS
A research paper by IBM - Quantum Artificial Life in an IBM Quantum Computer - won #1 physics research paper of the year. In late 2017, IBM was first to simulate a quantum system - the BeH2 molecule - thus proving that quantum computers indeed are able to calculate hard problems that classical systems cannot comprehend. This paper, a year later, does not use a VQE (quantum simulator) but an IBM Quantum Computer in the cloud to realize quantum artificial life. Why should you care? For two reasons, this is a huge leap closer to the realization of quantum supremacy and advantage, the point where an actual quantum computer can deliver results no classical computer can. With this paper, QC is no fantasy or theory anymore, but a young, maturing, proven technology. Second, a number of other quantum information science papers made it into the top 100 of the same ranking, demonstrating the interest and progress in this field.
Noticeably, a significant part of the QIS world is shifting some of their attention to proving that QC's work and how/when they will be superior, which is a very tough question to answer. MIT made a splash with a new way to benchmark classical and quantum computers. Why you should care? Methods to assess and compare performance and results of QC's are becoming increasingly mature and widely accepted. After an initial proposal by IBM of calculating Quantum Volume, this MIT paper offer another significant step forward to bring facts and data to QCs.
Do not miss the Quantum Tech Congress in Boston at the end of the summer. Why should you care? Anybody and everybody who is something (and nothing) in QIS will be there!
On May 31st, the White House held another roundtable discussion on QIS applications - led by efforts of the DoD, DoE and the chief of staff. This high level meeting ended with a clear statement: The USA cannot afford to be anything but the global #1 in QIS research and applications. Why should you care? QIS applications have tremendous military, policy and industrial implications, with China and Russia investing a multiple of what the USA is commiting and Europe lacking behind. These global efforts represent diverging national interests and pose the risk of creating the next superpower.