Thought Leadership
The age of artificial intelligence has only just begun, and the next tech revolution is right around the corner: quantum computing. Discover why it is worthwhile for companies to look at specific applications and the impact on their business.
The technology, which has so far been more of a research topic, is on the verge of scaling up. Companies and governments around the world are investing heavily in these disruptive systems. By 2040, the market for quantum computing could reach a volume of 93 billion euros – this corresponds to an average annual growth of 23 billion since 2020. The race to become a leader in quantum computing is therefore in full swing.
From the lab to the economy
Large technology companies such as IBM, Google, Microsoft, Intel and Amazon are investing billions in the development of the next generation of computers. Start-ups such as Alice & Bob, D-Wave, Rigetti, Quantinuum, IonQ, Quandela and Pasqal are also driving the technology forward with disruptive approaches. Microsoft with Majorana 1 and Amazon Web Services with Ocelot announced recently new approaches of quantum processors. This underlines how rapidly the field is developing. For companies, valid use cases and actual benefits are not that far away anymore.
Sopra Steria believes in an upcoming breakthrough and participated in Alice & Bob’s last 100 million Euro fundraising via its strategic partnership and investment arm, Sopra Steria Ventures. The French start-up belongs to the top 10 quantum start-ups globally foreseen to win the race for the quantum computer. The company is regarded as a pioneer of so-called “cat qubits”, an innovative technology for error correction in quantum computers. Their goal: to develop an fault-tolerant quantum computer by 2030. The technology will enable businesses of all sizes, assess their technological maturity and explore new use cases, accelerating the adoption of quantum computing across multiple business sectors.
Alice & Bob: fewer errors, more computing power
A key problem with existing quantum computers is their high susceptibility to errors. This is where Alice & Bob comes in with its pioneering “Cat Qubit” technology. These qubits can correct errors directly – a property that distinguishes them from classic quantum bits. The advantage: Alice & Bob requires up to 60 times fewer qubits for the implementation of algorithms such as Shor’s algorithm (important to solve certain mathematical tasks much quicker than ordinary computers) and even 200 times fewer in conjunction with advanced error correction methods. In times where the number of available qubits is still limited, this allows to solve more complex problems or get more accurate results. It’s like using a less complex CPU in classical computing, but without losing computational power. It’s like using a less complex CPU in classical computing, but without losing computational power.
Their current “Boson 4” chip has already demonstrated bit-flip times of over seven minutes – a significant improvement over conventional superconducting qubits. The company’s roadmap envisages the development of a universal, fault-tolerant quantum computer by 2030. This gives them a clear technological lead over other quantum computing approaches.
AWS Ocelot mentioned above also uses cat qubits, but with a twist: they pair them with transmons, a specialized type of superconducting qubit. Cats store the information, transmons handle error correction. Transmons are a more mature technology, helping AWS build larger chips faster. But pairing them with transmons weakens cat qubits superpower. In addition to the pure-cat approach, Alice & Bob aims to eliminate bit-flips, meaning they’d need about ten times fewer qubits than AWS to run useful quantum algorithms.
The roadmap to the industrial use of quantum computers
The transition from research to practice is gathering pace. While companies such as IBM and Google are already presenting the first quantum processors with more than 1,000 qubits, the biggest challenge lies in scaling and error correction.
This is exactly where Alice & Bob come in with their “Cat Qubit” technology. Their roadmap is as follows:
- Further development of error correction: the first marketable systems with improved stability.
- Pilot projects with industrial partners: quantum computers will be tested in the first real application scenarios
- Commercial availability of a fault-tolerant quantum computer: A fully-fledged quantum computer should be ready for the market by 2030.
Sopra Steria is actively supporting this process – both through participation and through projects with companies that want to prepare for the quantum age.
Quantum computing in practice: industries that benefit the most
In the financial sector, for example, speed counts. The analysis of market movements, the management of risks and portfolio optimization are decisive success factors. Quantum computers can act faster and more accurately than conventional systems thanks to their ability to calculate complex probability models in parallel. For example, banks and asset managers can use quantum algorithms for the valuation of complex financial products or the simulation of market risks, as well as in post-quantum cryptography in the form of new encryption methods.
Sopra Steria is already supporting financial institutions in identifying initial quantum use cases and formulating mathematical models in such a way that they are optimized for quantum computers. These models are then tested on real hardware in cooperation with start-ups from the quantum industry.
A second major area of application is aerospace. The industry is facing major challenges: Sustainability, rising fuel costs and complex logistics networks. Quantum computers can help to optimize rocket trajectories so that they need to carry less fuel. Another field of application is materials research. New composite materials needed in space travel can be developed faster and more precisely using quantum simulations. Sopra Steria is working with leading partners in the industry to research quantum-supported optimization processes for production and operation.
A third sector which will benefit from quantum computing is transport and logistics, especially traffic management. Different ways of transportation have to be synchronized, and supply chains are influenced by geopolitical events, natural disasters and fluctuations in demand. Quantum computing can provide a decisive advantage here by calculating optimal transportation and storage strategies. Airlines and rail companies could use quantum models to optimize their schedules and minimize delays. And logistics providers could adjust routes and freight movements in real time to avoid bottlenecks. Sopra Steria is already working with leading companies to integrate the first quantum-based simulation models for the transportation sector.
Another field is telecommunications network optimization. Quantum algorithms can help to distribute network load more efficiently in real time and detect faults at an early stage. This enables the dynamic optimization of mobile networks and data centers. Sopra Steria is already working with major European companies like a mobile network operator on the integration of quantum-based simulation models for optimal planning and utilization of the respective networks.
Quantum Computing challenges Cyber Security
Though quantum computing offers enormous opportunities to transform business models. On the other hand, the technology presents companies with a huge challenge: as soon as quantum computers are powerful enough, they can break current encryption standards such as RSA (Rivest–Shamir–Adleman) and ECC (Elliptic Curve Cryptography) in no time at all. Every organization therefore needs to convert its cyber security architectures to post-quantum cryptography today.
How companies leverage the game changer potential of quantum computing
Quantum computing will fundamentally change the economy in the long term. The technology cannot yet deliver on all its promises – but those who address the potential and risks early on will secure decisive competitive advantages. Three lines of action are crucial today maximizing benefits from this innovation in the future:
- Strategic preparation: companies should invest in open innovation projects to identify initial use cases for quantum computing.
- Post-quantum security: The development of new encryption methods is a must in order to protect business-critical data in the long term.
- Partnerships with technology leaders: Access to quantum computing expertise through collaborations with companies such as Alice & Bob or tech giants such as IBM and Microsoft will be crucial.
The next five years will largely determine which companies will be at the forefront of the quantum revolution – and which will be left behind.
The age of quantum computing is just around the corner
Quantum computers will change the way we process data forever. While there are still some technological hurdles today, progress will accelerate exponentially in the coming years. Companies that strategically align themselves now will be able to make the most of the opportunities presented by this disruptive technology.
