Capgemini’s CornerShop: Redefining physical retail shopping in the post-pandemic environment

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Evolving the customer experience

In February Capgemini, in partnership with connected experience platform SharpEnd and global media platform The Drum announced the CornerShop. Physically located in London, the CornerShop is a retail innovation store designed to transform shopping and customer engagement post-pandemic. CornerShop works as a live testing environment for brands, retailers and shoppers to reimagine the shopping experience through new technologies.

Utilizing the management consulting and digital design capabilities of Capgemini Invent and insights from research and data analysis, Capgemini will enable retailers and brands to evolve the customer experience, improve in-store operations and help customers rediscover in-person shopping with new engagement options in physical stores. TBR sees CornerShop as closely aligned with Capgemini’s Inventive Shopping offering, which addresses customer-related challenges such as new ways to engage, shop and build loyalty.

Partnering for post-pandemic retail

Overall, Capgemini utilizes advisory and digital design capabilities — some of which came through acquisitions, such as that of Idean and Lyons Consulting Group in 2017 and LiquidHub in 2018 — and Salesforce Commerce Cloud capabilities to win deals.

Last November Capgemini announced the completion of a personalized and data-driven e-commerce initiative for the U.S. website of Italy-based sportswear manufacturer Fila. Capgemini provided digital marketing, e-commerce, experience design, application integration and support services, improving the client’s ability to support online sales after the onset of the pandemic and closure of physical stores. The website, built on Salesforce Commerce Cloud, also uses Salesforce Service Cloud and MuleSoft to integrate the digital ecosystem. In July 2020 Capgemini completed the implementation of a new business-to-business face mask program for Gap Inc. Capgemini created a website in less than five weeks and a solution enabled by Salesforce Commerce Cloud to help Gap quickly add nonmedical cloth face masks to its online store offerings.

Expanding its industry-specific solutions by selecting priority industries for its portfolio development, such as consumer goods and retail, improves Capgemini’s ability to address pandemic-driven challenges specific to each business and industry segment. Consumer goods and retail, which accounted for 12% of revenue in 2020 and declined 0.1% year-to-year in constant currency, is on a path to recovery from the negative effects of the pandemic. Revenue in the segment declined 5.5% year-to-year in 2Q20 and 2.4% year-to-year in constant currency in 3Q20 but increased 4.3% year-to-year in 4Q20, indicating the challenges tied to store closures, supply chain interruptions and social distancing are easing up. Transforming the shopping experience through the CornerShop will help Capgemini increase activities with retail clients as they gradually ramp up sales and open physical locations as the pandemic abates.

TBR’s coverage of Capgemini includes quarterly detailed reports on the company’s financial performance and strategies related to go-to-market, resources, alliances and acquisitions. Capgemini is also covered in TBR’s quarterly IT Services Vendor Benchmark and semiannual Management Consulting Benchmark, and the company is featured frequently in our monthly Digital Transformation reports. 

New NTT Global Data Centers facilities in Chicago and Oregon solidify infrastructure footprint and position the vendor for continued growth

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As part of parent company NTT’s July 2019 restructuring effort, a separate company called NTT Ltd. was formed, which unified 31 global brands to create a 40,000-person, $11 billion company dedicated to offering IT, cloud and colocation services to large enterprises. At the center of NTT Ltd.’s strategy is NTT Global Data Centers, a separate division that offers a portfolio of global data center assets including RagingWire (Americas), NTT Communications (APAC), e-shelter and Gyron (EMEA), and Netmagic (India). With over 160 facilities, NTT Global Data Centers is now the third largest global data center provider.

Americas expansion to support NTT Ltd.’s growth in 2021

On Feb. 25, NTT Global Data Centers held a virtual event to unveil its two new data centers, in Hillsboro, Ore. (HI1), and Chicago (CH1). Both CH1 and HI1 are currently 36 megawatts (MW) but are expected to expand to 76MW and 126MW, respectively, to support increasingly complex IT workloads for both hyperscale and enterprise customers. NTT’s roots in telecommunications allow it to provide a broad portfolio of carrier-neutral connectivity options within each data center. Meanwhile the company’s IT services arm is also strong with offerings such as Remote Hands, which removes the need for on-site service and maintenance and has been in high demand during COVID-19.

The establishment of HI1 and CH1 marks the beginning of NTT Global Data Centers’ Americas expansion efforts for 2021. The company plans to open a campus in Silicon Valley, break ground in Phoenix, and expand its campus in Ashburn, Va., while the attach of various connectivity products and managed services will continue to support growth throughout the year. In a company press release, Doug Adams, CEO of NTT Global Data Centers Americas, highlighted the openings in the context of plans for the year, which he stated “will be a year like no other for our division, and opening these two new data centers is just the beginning [of] efforts that underline our commitment to put our clients at the center and bring data center services to key data center markets across the Americas.”

New data centers are strategically placed to address varied client needs

As the colocation market in the U.S. becomes increasingly crowded, NTT Global Data Centers expands in strategic markets to support its retail and wholesale colocation strategies and address the needs of clients regardless of size. This includes pursuing markets with access to affordable sources, low risk of natural disaster and the ability to support connections to emerging markets, among other factors.

NTT Global Data Centers supports 100% renewable energy

As technology sustainability remains a top-of-mind concern for CTOs, NTT Global Data Centers continues to operate on a message of clean energy and efficiency. Specifically, the new HI1 facility is an appealing option for customers looking to consume renewable energy options, while the new campus has earned a Level 3 certification from the Cleaner Air Oregon program, setting NTT Global Data Centers apart from competitors as it is the only data center in the region to receive the certification to date.

Local cost-saving opportunities support lower TCO for customers

One of the key attractions of NTT Global Data Centers’ CH1 facility is access to state and local tax incentives on equipment. Additionally, CH1 is powered by local energy company Commonwealth Edison (ComEd), which offers electricity at rates ComEd states are 18% lower rates than the national average. These initiatives are designed to support lower total cost of ownership (TCO) for customers through cheaper electricity, sales tax exemptions and lower cooling requirements.

Subsea cabling

NTT Global Data Centers has targeted the Pacific Northwest with HI1 due to accessibility to subsea cables that can connect across regions. With HI1, locally housed customers have an opportunity to access strategic markets in Japan as NTT Communications acquired Pacific Crossing for its subsea cable in 2009, supporting data communication between the U.S. and Japan. This connection with HI1 allows customers to contract with NTT Global Data Centers on a single cable and eliminates the need for multiple contracts, underscoring NTT Global Data Centers’ approach of leveraging parent company NTT to support clients. TBR believes NTT Communications’ strong foothold in Japan will boost NTT Global Data Centers’ ability to provide customers with low-latency connections between two emerging markets, serving as a growth driver and offering differentiation from other colocation peers.

Quick Quantum Quips: Vendors seek ways to increase quantum accessibility

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Welcome to TBR’s monthly newsletter on the quantum computing market: Quick Quantum Quips (Q3). This market changes rapidly, and the hype can often distract from the realities of the actual technological developments. This newsletter keeps the community up to date on recent announcements while stripping away the hype around developments.

For more details, reach out to Stephanie Long or Geoff Woollacott to set up a time to chat.

February 2021 Developments

As the power of quantum computing becomes more widely understood, accelerating access to quantum technology and quantum-like capabilities has become a key focus of vendors in the industry worldwide. The COVID-19 vaccine has highlighted the value quantum computing can have in accelerating drug discovery, creation, manufacture and distribution once the technology can be fully harnessed. Additionally, direct application of quantum computing exists in climate change, a top global concern, and sustainability, a focus of major corporations.

  1. Quantum Computing Inc. (QCI) unveiled Qatalyst, a quantum application accelerator. The aim of this software-centric offering is to leverage quantum principles with classically trained computer scientists to harness the power of quantum technologies for complex optimization problems such as supply chain and delivery route optimization by bypassing QPUs and leveraging APIs in their place. While Qatalyst is likely to accelerate near-term access to quantum computing capabilities, TBR believes advancements in other quantum computing technologies will surpass it in the long term. Qatalyst and related QPU and CPU resources are all available via the cloud and do not require on-premises resources to access.
  2. Cambridge Quantum Computing (CQC) partnered with CrownBio and JSR Life Sciences on cancer treatment research. The companies will leverage CQC’s quantum capabilities and CrownBio and JSR’s years of cancer-related research and data to identify multigene biomarkers for cancer treatment drug discovery. It is generally accepted throughout the quantum community that drug discovery will be one of the initial use cases for quantum systems that will be able to achieve economic advantage due to the costly and laborious techniques currently employed in drug discovery. Quantum computing could accelerate this process and reduce the amount of wet-lab research necessary to bring new drugs to market.
  3. IonQ is in early talks to merge with public company DMYT Technology Group Inc., which is a special purpose acquisition company (SPAC) created for the purpose of acquiring an existing company. The merger would enable IonQ to become a public company without going through a lengthy initial public offering. This would be the first U.S.-based pure play quantum computing vendor to go public through a SPAC if it comes to fruition. IonQ is also one of the leading vendors in the trapped ion quantum architecture space, and an IPO would provide the vendor with access to additional capital, which could accelerate its innovation efforts.
  4. D-Wave expanded the availability of its Leap quantum cloud service to Singapore, providing users in the country with real-time access to D-Wave’s Advantage quantum computer, hybrid quantum/classical solvers, and the Quantum Application Environment (QAE).
  5. Microsoft has acknowledged the potential positive impact quantum computing could have on energy, including reducing emissions and power consumption. Further, the research enabled by quantum technologies could lead to discoveries around cleaner energy sources and more efficient electrical power systems. TBR notes there has been an industrywide increase in focus on sustainability so while these acknowledgements by Microsoft of the environmental benefits of quantum computing are not unique, they mesh well with industrywide marketing efforts.

If you would like more detailed information around the quantum computing market, please inquire about TBR’s Quantum Computing Market Landscape, a semiannual deep dive into the quantum computing market. Our latest version, published in December, focuses on the software layer of quantum systems.

Women in STEM: EY’s Kris Lovejoy on the importance of mentorship

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The STEM field is growing, creating tremendous opportunity for well-trained applicants. While STEM has traditionally been a male-dominated field, cultivating interest at the undergraduate level can help draw in more women who may have the necessary skills but have never considered STEM as a career path. In TBR’s monthly series Women in STEM, we discuss how female leaders have successfully pursued careers in STEM and are encouraging more female representation by passing on the lessons they have learned to other women who are pursuing this path.

Meet Kris Lovejoy, global consulting cybersecurity leader at EY

Kris Lovejoy took a nontraditional path to her current position as a cybersecurity leader and advocate of quantum developments at EY. Prior to working at EY, Lovejoy worked in IBM’s cybersecurity business for seven years and was CEO of BluVector, an AI-powered security automation firm, prior to its acquisition by Comcast in 2019.

Lovejoy holds a Bachelor of Arts degree in English from Lafayette College in Easton, Penn., but opportunities that arose at the beginning of her career led her to shift her focus to a career in STEM.

Inspiration can be found where you may not expect it

Lovejoy emphasizes the importance of those we entrust with our children during their formative years. “The importance of educators can’t be underestimated,” Lovejoy says. She notes that one of the most influential people in her decision to enter the STEM field was her high school French language teacher, Donna Matles, who “gave me the courage to recognize my own value during some very dark days.”

Don’t let the loneliness of male-dominated fields intimidate you

As a woman with more than two decades of experience in the male-dominated cybersecurity field, Lovejoy says, “Finding the courage to continue where one feels very alone has not been easy, but I and my colleagues in cybersecurity are optimistic that we’re bringing diversity to the field.” It is an unfortunate reality that women with vocal opinions are often labeled as difficult. “Many women, in my experience, don’t feel comfortable speaking out,” says Lovejoy. “Instead, we talk about concerns within trusted circles.”

Often, one of the biggest roadblocks to personal progress is ourselves. In Lovejoy’s opinion, a key way to overcome this roadblock is to “learn how to empathize with others, including those who perpetuate stereotypes. It’s a matter of recognizing that the people you’re working with are human beings, and you can help them see the world through a different lens.” In short: Changing the landscape of STEM requires not being afraid to speak up and ask questions when something does not seem right.

Innovation benefits from diversity

Perhaps the most impactful piece of advice from Lovejoy: “Innovation benefits hugely from diversity.” STEM fields are some of the most innovative fields, yet remain male-dominated. Lovejoy states, “Based on various major tech companies’ diversity reports, female employees make up between 27% and 47% of the workforce, with the percentage dropping much lower when it comes to actual tech jobs, even though women make up more than half of the U.S.’ professional workforce.”

“We must work harder to raise the status of women technologists and promote female role models if we are to attract more women to the industry,” says Lovejoy. In 2018 EY launched EY Women in Technology (WiT) to promote a steady increase in female leaders in technology. “WiT is the articulation and demonstration of EY’s commitment to achieving a greater level of gender equality in a technology-enabled world,” says Lovejoy. Because the gender disparity in STEM fields is a global issue, EY’s global scale, coupled with the efforts of the WiT movement, positions the company well to make an impactful difference. EY is also a member of the Global Innovation Coalition for Change (GICC), a UN Women initiative that brings together private sector companies, academic institutions and nonprofit organizations to improve women’s access to and participation in STEM education.

STEM disparity goes beyond gender

From an economic standpoint, access to STEM opportunities decreases in line with a student’s socioeconomic status. STEM fields often require access to technical tools or technologies to adequately learn the basic skills. Lovejoy highlights the EY STEM Tribe Platform, which was created in collaboration with Tribal Planet to engage people globally on social impact priorities. This platform enables students worldwide to engage in STEM learning activities on their mobile device, in an entertaining and game-like manner, with modules on everything from climate change and space exploration to 3D printing and AI. “The global platform was previously piloted in India to 6,000 girls, and then EY launched this pilot in two U.S. cities, Seattle and Atlanta,” Lovejoy explains.

Look to and learn from the pockets of success

While there is still a long way to go in reducing access barriers to STEM resources and increasing the number of women in STEM fields, there have been successes we can celebrate and learn from. For example, Lovejoy states that EY’s cybersecurity team in Saudi Arabia is made up of 46% women. While still technically the minority, this is a massive and surprising win in a region where it is often believed that women are given very little opportunity to thrive.

As we look to these successes and try and replicate them on a global scale, Lovejoy leaves us with one final piece of advice, “Find people that you work with — male or female, doesn’t matter — people willing to speak on your behalf and coach you when you need it.”

Quick Quantum Quips: Quantum use cases expand to new industries

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Welcome to TBR’s monthly newsletter on the quantum computing market: Quick Quantum Quips (Q3). This market changes rapidly, and the hype can often distract from the realities of the actual technological developments. This newsletter keeps the community up to date on recent announcements while stripping away the hype around developments.

For more details, reach out to Stephanie Long or Geoff Woollacott to set up a time to chat.

January 2021 Developments

An increasing number of companies across a variety of industries are making deals and forming partnerships to seize opportunities for first movers in emerging quantum technology. Many organizations and several international governments are focused on laying a broad foundation for quantum innovation. However, with quantum expected to be a major disruptor in biopharma research and development as the technology matures, a considerable number of biotech and pharmaceutical companies are approaching quantum investments from a narrower perspective. Together, private organizations and public entities will continue to drive the emergence of new quantum use cases through investments that will also accelerate the adoption of the technology.

  1. Atos announced its commitment to participate in France’s quantum plan to take advantage of new and upcoming quantum-related capabilities. Through the strategy, the French government will collaborate with private industry partners and academic institutions to leverage quantum technology in a way that addresses wide-ranging socioeconomic issues, including healthcare, finance and the environment. Atos will contribute its post-quantum cryptography and will develop Noisy Intermediate-Scale Quantum (NISQ) simulators and accelerators and integrate them into high-performance computing platforms. Atos’ industry expertise and international business relationships will also play a role in advancing France’s national quantum strategy as well as the European Union’s (EU) quantum strategy, which seeks to leverage EU-based quantum innovations across the continent. Atos’ actions will not only benefit the French government and the country’s residents but also strengthen the company’s posture in the global quantum space.
  2. Cambridge Quantum Computing (CQC) appointed Bob Coecke as chief scientist. Coecke was a University of Oxford professor for the past 20 years and served CQC as a senior scientific adviser prior to his appointment. His quantum knowledge makes him a strong asset for CQC. The quantum computing company also announced a solution that addresses a multiphase flow classification problem within the energy sector. Working in partnership with Aker BP, a European energy company, CQC developed and validated a quantum machine learning (QML) algorithm delivered by IBM quantum processors. The QML algorithm stands as one of the industry’s first use cases in the energy sector, paving the way for related innovations.
  3. Google entered into a collaboration with Boehringer Ingelheim, a Germany-based pharmaceutical company, to support its biopharma research and development with quantum technology. Over the course of three years, Boehringer will co-lead the project from its new Quantum Lab and will leverage Google’s Quantum AI division to simulate biological mechanics. The companies anticipate these simulations will contribute to the discovery of modern medical treatments, and Boehringer expects that quantum will redefine the pharmaceutical industry by accelerating R&D processes.
  4. Amazon Web Services (AWS) announced it will collaborate with India’s Ministry of Electronics and Information Technology to establish a quantum computing applications lab in the country. Once the lab is complete, government agencies and other local entities will be able to take advantage of quantum computing “as a Service,” addressing use cases in industries ranging from healthcare to agriculture. AWS will continue to support the lab, providing hosting and technical assistance. This collaboration will expand AWS’ footprint in the region, which will prove valuable as India’s digital transformation gains momentum.
  5. Microsoft will host its second Azure Quantum Developer Workshop on Feb. 2. The event will feature technology from select members of Microsoft’s Azure Quantum ecosystem. Honeywell, 1QBit and IonQ will highlight how Azure Quantum supports their respective quantum technologies and associated use cases. Microsoft will use the event to market the value of Azure Quantum to outside developers.

If you would like more detailed information around the quantum computing market, please inquire about TBR’s Quantum Computing Market Landscape, a semiannual deep dive into the quantum computing market. Our latest version, published in December, focuses on the software layer of quantum systems.

Cloud migration rises to top as central IT investment for driving IaaS and PaaS adoption

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Cloud migration rises to top as central IT investment for driving IaaS and PaaS

Key Insights

The pandemic has laid bare the benefits of the cloud, serving as a proof point for the central role cloud plays in supporting organizations’ short- and long-term digital transformation road maps.

COVID-19 has dramatically accelerated the timeline for cloud adoption for many organizations, with public cloud as the most common method of delivery for IaaS and PaaS workloads.

The use of cloud professional services will continue to grow due to the challenges of migrating increasingly complex workloads to the cloud while working in a remote environment.

TBR’s Cloud Applications Customer Research tracks how customers are modernizing application environments and choosing between different cloud delivery methods. Leveraging in-depth conversations between TBR and enterprise customers, the Cloud Infrastructure & Platforms Customer Research provides subscribers with actionable insight that they can use to better understand their customers’ behavior and win cloud infrastructure deals. Topics covered for both reports include public, private and hybrid delivery options; decision-making involvement and criteria; leading vendor perception; field positioning and competition guides; and the impact of emerging trends (e.g., containers, security, platforms).

Women in STEM: IBM’s Jennifer Glick on navigating the quantum career path

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The STEM field is growing, creating tremendous opportunity for well-trained applicants. While STEM has traditionally been a male-dominated field, cultivating interest at the undergraduate level can help draw in more women who may have the necessary skills but have never considered STEM as a career path. In TBR’s monthly series Women in STEM, we discuss how female leaders have successfully pursued careers in STEM and are encouraging more female representation by passing on the lessons they’ve learned to other women who are pursuing this path.

Meet Jennifer Glick, a quantum computing applications researcher at IBM

Jennifer Glick received her doctorate in physics in 2017 for her work on the quantum information theory of measurement. In 2020 Glick was selected as one of MIT Technology Review’s 35 Innovators Under 35 for her work in quantum computing.

Jennifer Glick, IBM
Jennifer Glick, IBM Quantum Computing Applications Researcher

In her current role at IBM, Glick identifies promising quantum applications and develops proofs of concepts that drive advancements in quantum algorithms and methods. This work is essential to moving quantum computing from labs to the real world. In our recent discussion with Glick, she spoke of viewing college with an outcome mindset and boosting learning through free online resources as well as navigating the science path to a quantum career.

Encourage women to pursue STEM careers by being available to answer questions

Navigating the transition from academia to the corporate world can be difficult as universities do not always provide significant scaffolding during students’ academic career. For the highly specialized STEM fields, this is particularly true. But Glick recommends embracing this perceived roadblock with a growth mindset. “It turns out, [a growth mindset] is a great antidote to the impostor syndrome. Strategically seek out new experiences, ideas and challenges that get you out of your comfort zone,” says Glick. “It’s surprising how much you can learn just by observing the people around you.”

Glick adds that leaders in STEM fields can encourage young women to pursue careers in STEM by helping foster their initial interest and supporting them as that interest flourishes. Glick practices what she preaches, having mentored high school, undergraduate and graduate students while working toward her Ph.D.

View college with an outcome mindset, and then build backward with coursework

Many companies take a solutions outcome approach to their technology investments. Customers seek a particular outcome, and vendors then build architectures behind the scenes to enable that outcome. The customer does not necessarily know or care what underlying infrastructure they obtain as long as the desired outcome is achieved.

Education and how it relates to career choice can be thought of in a similar way. We compartmentalize education as something you complete before you start a career, but the reality is that lifelong learners are more likely to have successful careers. Glick’s advice to women considering a career in quantum computing is, “Study a combination of quantum physics, computer science and applied mathematics. A Ph.D. in physics is not strictly a prerequisite for working in quantum computing.”

Retool your existing skills via free online resources

For many, the idea of going back to college for additional degree work is unattainable. For those without existing degrees in quantum-related areas, Glick recommends leveraging free online resources to learn as much as you can on your subject of interest. As the field of quantum computing matures and expands, many related jobs in the industry are emerging, including around software engineering, sales, marketing and design. A variety of skills are necessary for the field of quantum computing to have long-term success. “Pay attention to key thought leaders in quantum computing — they can offer insight into where the field might be headed in the years to come,” says Glick.

Additionally, Glick recommends finding internships within the industry. Well-established STEM fields frequently offer internships to help apprentice young people seeking to work in fields with skills shortages. As careers in STEM become more technical, undergraduate degrees lay the foundational knowledge but on-the-job-training is the most valuable way to obtain the specialized skills necessary to succeed in STEM. A longstanding challenge with internship access has been physical location. However, COVID-19, for all of the hardships it has created, has connected the world digitally more than ever before. Young people in rural locations can now access internships and training at major metropolitan corporations virtually, which removes this physical location roadblock.

Don’t be daunted by the science: Quantum is a growing field with nonscientific opportunities as well

Perhaps Glick’s most important piece of advice is the reminder that emerging and complex scientific technologies are accessible. “Start using quantum computers,” says Glick. “Contribute to open-source software, try the circuit composer on the IBM Quantum Experience, use Qiskit to design and test quantum circuits and algorithms.” IBM has provided ways for people interested in a career in quantum computing, or simply interested in the technology as a hobby, to access it and not only learn from the technology but also eventually teach others. Leveraging online resources and courses, such as the Qiskit Textbook and Qiskit Global Summer School, in conjunction with playing around with IBM’s accessible quantum assets are ways to become smarter around a STEM technology.

Hybrid delivery models, diversified partnerships and expanded portfolios alleviate vendor revenue pressures

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Key Insights

Hybrid delivery — Virtual selling and management consulting service delivery replace face-to-face interactions between vendors, clients and partners.

Partnerships — Emerging technologies necessitate more complex ecosystems, pressuring all players in the IT services space to partner differently.

Portfolio expansion — Vendors are establishing applications and infrastructure managed services capabilities to provide design-build-run solutions.

The Management Consulting Benchmark provides key service line, regional, vertical and operational data and analysis for 13 leading management consulting firms. The research program also includes a deep dive into 11 vendors’ management consulting business strategies as well as SWOT analysis.

Collaboration is key to the advancement of quantum computing technology

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Key Insights

Commercialization is both a challenge and a solution in the quantum space. Commercializing systems will help alleviate some of the anticipated investment shortages as investors want faster ROI than the quantum landscape road map can promise.

Training can help end customers better understand the practical uses for quantum computing, as well as the capabilities of current systems and the approximate timeline of when systems will be powerful enough to meet unique business needs.

TBR’s Quantum Computing Market Landscape, which is global in scope, deep dives into the quantum computing-related initiatives of key players in the space. It lays out the vendor landscape, details current leaders and laggards, and discusses the differing strategies of vendors in the market. The report discusses alliances as well as the tie-ins between quantum computing vendors and their nonquantum computing counterparts. Predictions around use cases and workloads that will benefit initially from quantum computing are explored as well as current customer sentiment around the technology.

Quick Quantum Quips: Investments in componentry accelerates

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Welcome to TBR’s monthly newsletter on the quantum computing market: Quick Quantum Quips (Q3). This market changes rapidly, and the hype can often distract from the realities of the actual technological developments. This newsletter keeps the community up to date on recent announcements while stripping away the hype around developments.

For more details, reach out to Stephanie Long or Geoff Woollacott to set up a time to chat.

December 2020 Developments

Quantum componentry is of rising importance in the quantum computing ecosystem as vendors seek to not only achieve economic advantage but also to create a quantum system that can be scaled for commercial use. Recent investments in the quantum space suggest a preference for homegrown quantum solutions in the European Union (EU), prompting vendors not based in the EU to increase their local presence to capitalize on this regional trend. Startups continue to emerge to capitalize on a piece of what promises to be a lucrative market while vertical-specific nonquantum vendors innovate around quantum to improve their own offerings for end customers.

  1. Intel launched Horse Ridge II, the second generation of its quantum computer controller. Horse Ridge II improves on its predecessor’s scalability and flexibility. Scalability is currently a key challenge most vendors in the quantum computing market face as they struggle with scaling qubit volume to achieve economic advantage as well as scaling the volume of systems. These systems are very nascent, the componentry is complex and it takes a team of scientists and engineers to create a single system. This is not a scalable model, but vendors such as Intel continue to work to simplify components and, in some cases, even outsource component manufacturing to make it possible.
  2. Phasecraft was founded in 2018 and is an emerging quantum computing player in the market. The vendor recently received £3.7 million in seed funding led by venture capital firm LocalGlobe, bringing its total funding since its inception to £5.5 million. Phasecraft has existing partnerships with Google and Rigetti and aims to leverage its expertise to bridge the gap between hardware and applications. Phasecraft currently employs 10 people.
  3. ColdQuanta was one of six finalists out of 80 participants in NASA Entrepreneur’s Challenge, winning $100,000. The purpose of the competition was to promote the development of and experimentation with new technologies and devices to advance NASA’s science exploration goals. ColdQuanta’s proposal was to leverage its cold atom technology to create a compact quantum gravity sensing device that could be deployed on a satellite or shuttle to monitor and map the Earth’s resources and assist in the assessment of natural disaster damage. While the challenge was not specific to quantum computing, the development of quantum devices further increases visibility of quantum technology’s capabilities beyond just computation.
  4. Microsoft is increasing its EU presence through initiatives in Denmark, which TBR believes will prove advantageous as the EU has shown a desire to fund locally sourced quantum technologies. While Microsoft’s investments in the region go far beyond quantum computing and the company’s most recent announcement is tied specifically to Denmark’s sustainability initiatives, we believe there will be benefits to Microsoft’s quantum computing arm. Microsoft currently has over 1,000 employees in Denmark and has invested in a quantum computing research lab in collaboration with the University of Copenhagen and the Technical University of Denmark.
  5. AT&T, in conjunction with Purdue University, has developed a testbed for 5G research that leverages 5G millimeter technology and quantum cryptography to improve network security. Vertical-specific innovation such as that coming out of AT&T around quantum-safe networking security is increasing as industries seek to uncover ways to coexist with emerging disruptive technology such as quantum computing. While the primary goal of AT&T’s quantum research investments is to use the resulting technology internally, TBR believes it is likely that in the long term, the vendor may also turn its discoveries into a marketable solution.

If you would like more detailed information around the quantum computing market, please inquire about TBR’s Quantum Computing Market Landscape, a semiannual deep dive into the quantum computing market. Our latest version, published in December, focuses on the software layer of quantum systems.