Industry Overview 1 ALEX VOVCHUK Report Author Alex Vovchuk has been a product manager for SoftServe’s R&D team since 2019. His focus is on thecommercialization of cutting-edge technologies. Having both a technical and product managementbackground, Alex is able to drive the transfer of advanced innovative technologies directly from thelab to the market. Currently, Alex works extensively in the domains of Conversational AI, QuantumComputing, and 3D Scanning. CONTENTS THE VALUE OF QUANTUM COMPUTINGINTRODUCTION TO QUANTUM COMPUTINGINDUSTRY CHALLENGESMARKET ANALYSISBUSINESS CHALLENGES AND VALUEUSE CASESSOFTSERVE’S QC PROGRAM481419293539 The Value of Quantum Computing KEY TAKEAWAYS Quantum computersrepresent an entirelynew model of computing,based on principles quitefar removed from theirtraditional cousins—just aslight bulbs and candles areonly distant relations. Computer processor powerhas roughly doubled everydecade since the mid-twentieth century, but theseprocesses must now takeplace on the quantum levelto keep pace with the rate ofinnovation. As innovation continues,more companies are enteringthis field and launching realefforts to explore how thistechnology can transformtheir business. Why now?BUSINESS VALUE Technology potential Stay Innovative Innovation and technology are the new cost ofentry for modern businesses. Companies mustharness technology to overcome uncertaintyand meet their customer’s evolving needs andexpectations. Quantum computing stands tobe one of the most disruptive technologies ofall time by providing an enormous competitiveadvantage to organizations that can use it tosolve key business problems and build efficientprocesses, services, and products. Companiesthat adopt quantum computing too late will be leftbehind. The current situation around quantum computingis very similar to one we saw about five yearsago with AI and machine learning. As innovationcontinues, more companies are entering this fieldand launching real efforts to explore how thistechnology can transform their business. Quantumcomputing remains a nascent technology, but itspotential is already being felt across many sectors. Game-changer in cybersecurity If companies want to stay secure in future,they need to start exploring quantum now. TheNational Institute of Standards and Technology(NIST) recently assessed the threat of quantumcomputers and advised organizations to develop“crypto agility”— the ability of a security systemto rapidly switch to newer cryptographicalgorithms, primitives, and other encryptionmechanisms without the rest of the system’sinfrastructure being significantly affected by thesechanges. Organizations should pay attentionto these developments and design their ownroadmaps in place to follow through on thoserecommendations. $260MIN 2020 TO GLOBAL VALUE Why we need it? Moore’s law, which empirically predicted a doubling of the computing processor power every 18 months,came into being in 1965. Since then, his prediction has defined the trajectory of technology and, in manyways, of progress itself. Up to this point, it had proved true, mostly as a result of the efforts to developchips with smaller transistors. But we reached the point where physical limitations come into play: atvery small scale (atomic level), quantum effects disrupt the operability. We are unable to keep this pace -Moore’s law is coming to an end. “It’s over. This year that became really clear,” says Charles Leiserson, a computer scientist at MIT and apioneer of parallel computing, in which multiple calculations are performed simultaneously. The newestIntel fabrication plant, meant to build chips with minimum feature sizes of 10 nanometers, was muchdelayed, delivering chips in 2019, five years after the previous generation of chips with 14-nanometerfeatures. Moore’s Law, Leiserson says, was always about the rate of progress, and “we’re no longer on thatrate.” Numerous other prominent computer scientists have also declared Moore’s Law dead in recentyears. In early 2019, the CEO of the large chipmaker Nvidia agreed. The Value of Quantum Computing VALUE Why we need it? FIRST GENERATION(1940-1956)Vacuum tubes SECOND GENERATION(1956-1964)Transistors THIRD GENERATION(1964-1971)Integrated circuits FOURTH GENERATION (1971-present) Microprocessors FIFTH GENERATION (present and beyond) Quantum computers Source: Accenture INTRO How does it work? Bits VS Qubits The novelty of quantum computing how it takesadvantage of certain phenomena that occur atthe subatomic level. To better understand how itworks, here are the core attributes that distinguishquantum computing from conventional. As we know, in classical computers theinformation is represented by bits that have avalue of either 0 or 1 (depending on whethercurrent is “passing” or not). The core buildingblock of Quantum computers is qubit (quantumbit). Qubits are similar to classical bits in that forpractical purposes we read them as a value of 0or 1, but t