Technology
Quantum computing: exploring early commercial potential
Although some way from being a mainstream 'business as usual' technology, early projects are starting to build understanding of the issues that quantum computing raises
The current state of development of quantum computing is often compared to the 1945 ENIAC (Electronic Numerical Integrator And Computer) machine for classical computing, or the Wright brothers' 1903 breakthroughs for aviation. Every element of the quantum computing stack remains a work in progress. Although 2022 will not be the year that quantum computing goes mainstream or when every business starts to think about its potential, this is not a technology to ignore.
Full-scale universal quantum computing hardware (including those beautiful golden chandelier structures that operate at temperatures colder than outer space) is still in its very early years. But other forms of quantum computers are more advanced. While their applications are more constrained, they create the opportunity to explore the potential of these new systems: how to integrate them with existing architectures, which problems quantum computation best suits and how to frame those problems to ensure its power is harnessed.
Exploration
Views on whether businesses are – or should be – exploring quantum computing vary widely. Deloitte, in its Tech Trends for 2022 article on quantum computing, comments: "… the key takeaway for most readers in many industries is that they do not need to care about the likely news announcements coming from various quantum computing companies over the next year or two".
On the other hand, a report produced by Hyperion Research in November 2021 for D-Wave, which develops and delivers quantum annealing systems, found that almost 70% of more than 400 businesses surveyed already have some form of in-house quantum computing programme. This research was focused on larger organisations (more than $50m revenue in 2021) with significant investments in technology (annual IT budgets greater than $5m). It found that there was "some level" of quantum computing in 19 different verticals or sectors, with no particular sector in the lead. Activity was spread across the tech sector, computer-aided engineering, financial services, retail, pharmaceuticals, telecoms, advanced manufacturing and healthcare, among others.
Optimisation was a significant common thread through the types of problems being explored.
Resources
Optimisation
Imagine a sudoku puzzle. Solving it requires systematically working round all the options until each square and eventually the whole grid is resolved. A classical computer may achieve this faster than the human brain but will tackle the problem in fundamentally the same way. By contrast, the quantum mechanics properties of qubits (quantum processing bits) mean that all possible values for each square can be represented simultaneously, and all potential combinations across the whole grid can be simultaneously understood. The speed to resolve the puzzle will be vastly increased by quantum processing compared to classical processing.
Taking a more commercial challenge, imagine a delivery schedule with many different route options to deliver to a large number of addresses, plus variables around traffic flows, fuel efficiency and weather conditions. Or consider a fund that could be invested in many different asset classes, with different risk levels and growth potential to consider not just for each class but for each investable asset within the class. The simple question of the optimal route for the driver to take or the best combination of investments requires a powerful classical computer to find an answer – but can be resolved much faster with quantum processing. Other optimisation problems include production or process planning in manufacturing, traffic-flow management and supply-chain logistics across a wide range of industries or staff scheduling.
Stepping-stone technology
Quantum annealing machines are a stepping-stone technology. They are less complex than universal quantum computers but more limited in the types of problems that they can resolve. But they are well suited to optimisation problems. Many of the current examples of practical commercial applications are found in this part of the quantum computing landscape.
In the automotive sector, projects have included paint shop scheduling that optimises switching between the different primer paints needed for different end-paint colours. The commercial value was delivered through the reduction in downtime in the paint shop, which led to increased output.
In retail, a supermarket chain used quantum annealing to optimise a problem that encompassed around 4 million variables. The problem was too complex for classical computers to tackle in a commercially feasible time frame. A quantum annealing system resolved the problem in seconds rather than 25 hours for individual instances, and took 10 minutes rather than weeks to apply the same analysis across the whole business. This speed of output has meant that quantum-based processing becomes feasible for the business to use on a daily basis for operational decisions.
Contracting considerations
The vast majority of quantum computing for commercial applications is accessed as a cloud service, rather than purchased for on-premise use. The early stage of understanding means that partnerships between the quantum processing service provider and end-users, including consultancy and support from the service provider, are typically critical to success.
Given that these partnerships are very often exploratory in nature, the terms and conditions for quantum processing services may be more open to negotiation than classical cloud services and require a different approach to operations and risk allocation than mature and standardised services. In particular, it is worth taking care to ensure the following are addressed:
- The scope, objective and limits of the joint project or the service that is provided should be clearly defined or, if not, mechanisms for refining the scope should be agreed.
- Given that quantum processing capabilities are likely to be an important component of the arrangement, relevant metrics for these should be considered.
- The nature of the relationship and the specific project should be reflected in an appropriate pricing mechanism that aligns the parties' interests.
- Risks, responsibilities and liability should be clearly mapped out and understood, particularly in relation to errors generated by the quantum system, paying attention to the potential for errors that may be hard to foresee due to the complexity of quantum computing technology.
Quantum potential
From the perspective of business end-users, the challenge of quantum computing is not developing the hardware or software stack, but understanding the categories of problem that can leverage quantum processing power to deliver competitive advantage and increased revenues. From a practical point of view, there is a further challenge to be explored around how to integrate quantum processing into a business's existing IT architecture in a way that supports operations and decision-making.
From the perspective of quantum computing developers and service providers, there is a clear incentive to grow demand and understand customer priorities by supporting businesses in these exploratory projects.
Although quantum computing is some way from being a mainstream "business as usual" technology, early projects are starting to build understanding around these issues. Early movers are in a prime position to secure competitive advantage from embracing this transformative new technology.
Connect with one of our experts

Catherine Hammon, Lead author Digital Transformation Knowledge Lawyer, Head of Advisory Knowledge, UK catherine.hammon@osborneclarke.com +44 207 105 7438

Konstantin Ewald Partner, Germany konstantin.ewald@osborneclarke.com +49 221 5108 4160

Chia Ling Koh Director, Singapore chialing.koh@osborneclarke.com +65 6350 4380

Felix Hilgert, LL.M. Partner, Germany/US felix.hilgert@osborneclarke.com +1 650 462 4020

Mark Taylor Partner, UK mark.taylor@osborneclarke.com +44 20 7105 7640

Zhen Kai Giam Associate, Singapore zhenkai.giam@osborneclarke.com +65 6350 4389