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Cloud-Based Quantum Computing: What You Need to Know

October 28, 2022

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Cloud-based quantum computing is here. It will enable businesses to optimize their investments, improve encryption, and discover new products—which is only the beginning. As quantum cloud computing continues to gain ground, it is essential to understand how it works and how you can implement it in your long-term business strategy.

This article takes a closer look at cloud-based computing, analyzes future trends, and explains how businesses can benefit from this technology.

What Is Quantum Computing?

Quantum computing is a field of research concerned with the development of computer-based technologies, centered around the principles of quantum theory. This solution is changing the business world in remarkable ways. Google is already driving innovation with the principles of quantum physics to develop next-generation products and services for end-users.

Quantum computers solve many problems exponentially faster and with less energy consumption than classical, or binary, computers. Supercomputers are the best example of how quantum computing works when used properly. These computers apply the principles of quantum physics to perform complex computational tasks and process large data sets in short amounts of time—and they do so with much higher efficiency than their classical counterparts.

Although significant advances have already been made, we are still far from seeing this technology’s true potential. But as quantum software and hardware undergo significant transformations, a quantum computing-powered future is becoming more and more plausible. Companies like IBM, Microsoft, Google, and Amazon are competing by adapting to emerging quantum technologies, and recent studies suggest that revenues for the global market are expected to reach $8.6 billion in the next 5 years.

How Does Cloud-Based Quantum Computing Work?

Cloud-based quantum computing can be defined as the use of quantum computing technology over the Internet. This innovative solution combines the concepts of quantum computing and cloud computing. 

The use of cloud-based quantum computing significantly increases the benefits of both technologies. According to Harvard Business Review, quantum computers are not used in isolation, but are integrated into a hybrid solution where tasks are assigned to the most appropriate machine (quantum or classical).

Cloud infrastructure for quantum computing will enable resource sharing and create economies of scale that will reduce costs and improve accessibility, which in turn will increase demand and accelerate progress. Companies that use cloud computing are also developing cloud quantum computers. Thus, these computers will become more easily accessible without actually owning them—individuals and businesses will have the opportunity to access this solution through the cloud.

Currently, IBM is the only company that provides open-source cloud quantum computing, by allowing free access to their 5-qubit machine. Recently, they have also installed a 17-qubit quantum computer in the cloud. Other businesses are also planning to offer cloud quantum computers in the coming years.

Business Applications for Cloud-Based Quantum Computing

A Harvard Business Review study shows that cloud-based quantum computing presents promising applications for businesses. It is expected to play a significant role in several industries—including finance, logistics, pharmaceutical research and development, blockchain and cybersecurity, and the energy sector. Let’s take a closer look at all of these to better understand how this technology can enhance business functions.

Finance

Portfolio optimization, asset pricing, risk analysis, fraud detection, and market forecasting are just some of the processes that can be elevated by quantum computing. Financial institutions can also use it to speed up transactions, efficiently manage portfolios, and make more accurate predictions.

Pharmaceuticals

Drug discovery is a very expensive process, and simulating molecules can be computationally demanding. Quantum computers are ideally suited for pharmaceutical research and development since they are intrinsically better at simulating quantum objects. Quantum algorithms are expected to provide accurate simulations of molecules over extended periods of time, according to a recent report by IBM. This could enable the discovery of life-saving drugs and significantly reduce the time needed for drug development.

Blockchain and Cybersecurity

A quantum computer can provide powerful encryption capabilities for electronic communications and increase network security. With the ability to process more complex information, data could be transmitted over the Internet with much more secure encryption.

Furthermore, blockchain technology relies on secure transactions and cryptographic methods, and is therefore vulnerable to cyberattacks. That’s why research into post-quantum cryptography—or quantum blockchain—is good preparation for the future, according to Accenture.

Energy

Optimizing current network structure and predicting usage are two major interrelated issues, both well-suited for testing on quantum computers. In this regard, ExxonMobil has begun experimenting with IBM as a quantum computing partner.

How Should Businesses Approach the Implementation of Quantum Computing?

Recent reports show that companies are using different methods to prepare for quantum computing’s adoption. The most popular method among early-stage adopters is building an internal team. Other common preparation methods include experimenting and creating proofs of concept, conducting experiments on quantum hardware or simulators, developing new applications, and collaborating with external vendors. Due to the fact that few companies will build or own quantum computing technology anytime soon, we will see a cloud-based quantum computing model where enterprises rent access to them—which will be hosted by specialized providers like IBM, Google, or Microsoft.

Since technological and competitive forces are ushering in the quantum age faster than one might expect, it is important for business owners to start implementing quantum computing. Experts emphasize that companies that pay attention today are likely to take industry leadership away from those that don’t. Companies that are exploring quantum computing are doing so to improve their performance and business results. They are also pursuing workforce development and securing first-mover advantage.

Entrepreneurs should be aware of industry developments and explore how others in their field are investing and experimenting with this technology. A good place to start is to lay out plans and scenarios for how quantum computing will impact your business. Then, it is extremely important to develop a strategy. You might consider bringing together a team of people who understand the impact of cloud-based quantum computing and can identify future needs, opportunities that may arise, and potential vulnerabilities.

Closing Thoughts

In an increasingly competitive business environment, staying up to date with emerging technologies is absolutely essential. Quantum cloud computing has a plethora of promising applications for businesses in various industries. Huge investments are currently being made in research, and although cloud-based quantum computing is still in its early stages, the impact it could have on industries and businesses should not be underestimated.