Is QC-based optimization migrating from cloud to on-premises?
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The majority of quantum computing activity around optimization projects continues to happen through the major cloud services, but on-premises quantum computing-based optimization efforts could be set to increase.
Some indications of that movement in the last year include sales of quantum computing equipment by IonQ, QuEra Computing, and Rigetti Computing for on-premises installation, as well as D-Wave’s announcement last month that Davidson is deploying one if its annealing quantum machines in Huntsville, Alabama.
“Though quantum computing is now primarily a cloud computing based activity, we will start to to see an increase in on-prem procurements,” said Bob Sorenson, senior vice president of research and chief analyst for quantum computing at Hyperion Research on a D-Wave Systems webinar this week. “A lot of companies right now are still kicking the tires on quantum computing. Once they start to depend on it in a production-level environment, they’re going to weigh the technological and economic advantages of balancing their quantum computing requirements between cloud when necessary and on-premises. So I think we’re gonna see more and more production jobs moving off the cloud into on-prem capabilities going forward.”
Despite that observation, which was made during the D-Wave webinar, “Quantum Optimization for Business: 2024 Hyperion Research Survey Results,” Sorenson added that it is still likely that cloud-based access remains the dominant method of access to quantum computing resources for the foreseeable future. He said recent research suggested that 39% of quantum computing-based optimization efforts are relying on third-party cloud services, while 24% use direct access via the cloud to a quantum hardware supplier. About 18% use on-premises access, but Sorenson said that he was surprised by this figure, calling it “high” and in need of further research.
Sorenson also said his research found that many firms working on quantum computing-based optimization projects have been doing so for at least 1-2 years, with some exceeding two years in their efforts. Meanwhile, the biggest hurdles to adopting quantum computing for optimization efforts are the complexity IT teams face in integrating the technology into their current organizations, as well as the lack of quantum computing expertise in those organizations, the research found.
Image: Quantum-computing-based optimization efforts primarily occur through cloud services, but we may start to see more on-premises activity, according to Hyperion Research.
Dan O’Shea has covered telecommunications and related topics including semiconductors, sensors, retail systems, digital payments and quantum computing/technology for over 25 years.