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IBM Market Development & Insights

Note: This report is based on internal IBM analysis and is not meant to be a statement of direction by IBM nor is IBM committing to any particular technology or solution.

Quantum ComputingIBM HorizonWatch 2016 Trend Brief – External Version

Bill Chamberlin, Principal Client Research Analyst / IBM HorizonWatch Community LeaderMay 12, 2016

© 2016 IBM Corporation

IBM Market Development & Insights

Note: This report is based on internal IBM analysis and is not meant to be a statement of direction by IBM nor is IBM committing to any particular technology or solution.

About this HorizonWatch Emerging Trend Brief

2 Quantum Computing: HorizonWatch 2016 Emerging Trend Brief (External) 12May2016

Purpose: The slides provide a quick overview of the Quantum Computing trend. The slides provide summary information, a list of trends to watch and links to additional resources

How To Use This Report: Use these slides as a learning document and a springboard to further research and reading on this trend. You may want to view the slides in slideshow mode so you can easily follow the links

Available on Slideshare: The latest version of this file (and other HorizonWatch Trend Reports for 2016) will be available publically on Slideshare at http://www.slideshare.net/horizonwatching

Please Note: This report is based on internal IBM analysis and is not meant to be a statement of direction by IBM nor is IBM committing to any particular technology or solution.

© 2016 IBM Corporation

IBM Market Development & Insights

Note: This report is based on internal IBM analysis and is not meant to be a statement of direction by IBM nor is IBM committing to any particular technology or solution.3 Quantum Computing: HorizonWatch 2016 Emerging Trend Brief (External) 12May2016

“IBM believes quantum computing is the future of computing and has the potential to solve certain problems that are impossible to solve on today’s supercomputers.” IBM

© 2016 IBM Corporation

IBM Market Development & Insights

Note: This report is based on internal IBM analysis and is not meant to be a statement of direction by IBM nor is IBM committing to any particular technology or solution.

About Quantum ComputingIt is likely that we are on the cusp of a new age in computing. Quantum computing may well represent the biggest breakthrough in computer technology since the invention of the microprocessor. Around the world right now governments, academic researchers and large corporations are in a gold rush of sorts to develop quantum computers.

Today’s computers process information in what are called bits. Each bit is either off or on, designated by either a zero or a one. A quantum computer has what are called quantum bits or Qbits. These are made out of quantum particles that can be designated by a zero, one, or some kind of state in between. What this means is that the qbits can have both values at the same time.

In layman’s terms this all means that quantum computers have the potential to be much more faster and many times more powerful than today’s computers.

Quantum Concepts Bits and Qubits: Unlike traditional computers, which use bits to process information, quantum

computers use quantum bits or qubits to perform calculations in powerful new ways. A regular bit is either a 1 or a 0, but a qubit can represent a 1 or a 0 or both at once.

Superposition: This allows a single qubit to hold much more information than a regular bit. It enables a much larger number of states. This means a group of qubits represent a vastly larger number of states at the same time – exponentially more than a similar number of digital bits.

Entanglement: A correlation between qubits where they share some common information. Taken together, superposition and entanglement allow vastly more powerful algorithms by employing the correlations to emphasize the correct answer to a problem.

4 Quantum Computing: HorizonWatch 2016 Emerging Trend Brief (External) 12May2016

© 2016 IBM Corporation

IBM Market Development & Insights

Note: This report is based on internal IBM analysis and is not meant to be a statement of direction by IBM nor is IBM committing to any particular technology or solution.

Quantum Computing – 5 trends to watch in 20161. Increased awareness: Many business and

technical leaders are still unaware of the implications of a shift to quantum computing. As vendors make announcements and more content is published, we will all become more aware of the potential.

2. Vendor activities: Vendors to watch in 2016 include Microsoft, D-Wave, Alphabet, IBM, Alibaba, Intel and Toshiba.

3. Solving technical challenges: Technical hurdles that must be overcome include: 1) creating systems that can run lots of qubits, 2) minimizing the number of qubits needed to do any algorithm or calculation, and 3) developing advanced error correction capabilities.

4. Government investments: Governments are continuing their secretive research, investing huge sums of money in the quest for quantum computers that can help them secure sensitive communications.

5. Brain drain: Corporations and governments to hire more experts away from universities and research labs

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IBM: Quantum computing: Time for venture capitalists to put chips on the table?

“By harnessing the principles of quantum mechanics to represent multiple states simultaneously, quantum computers promise exponentially more speed and power than what is attainable by traditional computers today. They have the potential to impact problems on a global scale, and the possibilities of solving what is today unsolvable are significant for businesses and for the planet.” MD&I Center for Applied Insights: Business benefits of quantum computing

Quantum Computing: HorizonWatch 2016 Emerging Trend Brief (External) 12May2016

© 2016 IBM Corporation

IBM Market Development & Insights

Note: This report is based on internal IBM analysis and is not meant to be a statement of direction by IBM nor is IBM committing to any particular technology or solution.

Five industry verticals and the potential impact of Quantum Computing1. Transportation: Consider all the calculations that will

be required in real-time to ensure that autonomous vehicles on the ground, air and in the water don’t crash into people, other vehicles or objects. Traffic will flow fast and smooth with quantum computers making the calculations and decisions for us.

2. Financial services: Quantum computers would be used to help firms find new ways to profit from changes in prices that happen instantaneously across markets.

3. Healthcare: Tomorrow’s computers will be able to handle genomic calculations for specific patients while they are in the doctor’s office and then use that information, along with advanced cognitive computing analytics, to propose specific and personalized care.

4. Life sciences: Researchers will use quantum computers to discover new findings about complex biological systems at the molecule level. This will lead to significant new discoveries in areas like drug development.

5. Telecommunications: Quantum communication technologies have the potential to revolutionize secure communications for both government (e.g., military and intelligence organizations) and businesses.

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IBM: A Turning Point for Quantum Computing

Quantum Computing: HorizonWatch 2016 Emerging Trend Brief (External) 12May2016

“Quantum computing will be able to tackle problems that computers just don’t have the power for today. They will solve problems and present recommendations back in seconds instead of days. Good application areas will include those that require intense real-time mathematical calculations on large, complex data sets leading to the selection of the best option among a large number of possible combinations.” IBM MD&I

© 2016 IBM Corporation

IBM Market Development & Insights

Note: This report is based on internal IBM analysis and is not meant to be a statement of direction by IBM nor is IBM committing to any particular technology or solution.

IBM resources for Quantum Computing Websites: Quantum Computing page and Frontiers Institute

IBM Press Release: IBM Makes Quantum Computing Available on IBM Cloud to Accelerate Innovation

Articles and blog posts– 5 quantum computing trends to watch in 2016– The Quantum Age of Computing is Here– IBM unlocks quantum computing capabilities, lifts limitations of

innovation

– It’s time to build a quantum community– A Turning Point for Quantum Computing– Quantum Computing: The New Frontier– We’re Entering a Golden Era of Quantum Computing

Research– Our Quantum Future – TED@IBM 2015

IBM Research: – Theory of quantum computing and information group– ThinkQ

2015 - Challenges and applications for medium size quantum computers

IBM Center for Applied Insights:– Blog posts tagged Quantum– Quantum Computing Gallery

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“This is so immensely different than our current approach to computation that the entire infrastructure of computing must be re-imagined and re-engineered.” IBM

Quantum Computing: HorizonWatch 2016 Emerging Trend Brief (External) 12May2016

IBM: Frontiers Institute

“The IBM Quantum Experience represents the birth of quantum cloud computing, offering students, researchers, and general science enthusiasts hands-on access to IBM’s experimental cloud-enabled quantum computing platform, and allowing users to run algorithms and experiments, work with quantum bits (qubits), and explore tutorials and simulations around what might be possible with quantum computing.” IBM Quantum Experience

© 2016 IBM Corporation

IBM Market Development & Insights

Note: This report is based on internal IBM analysis and is not meant to be a statement of direction by IBM nor is IBM committing to any particular technology or solution.

IBM videos about Quantum Computing

The future of supercomputers? A quantum chip colder than outer space | Jerry Chow | TED Institute https://youtu.be/VsBuuwGj3zs

360 of Quantum Computing Lab: Inside the IBM Research Quantum Computing Lab / https://youtu.be/jf7D8snlsnQ

Quantum Computing Lab Walkthrough: A Tour of the IBM Quantum Computing Lab / https://youtu.be/KZf4BSmgdO4 

Quantum in the Cloud Overview: Introducing the Quantum Age of Computing and bringing Quantum Computing to the Cloud / https://youtu.be/DZ2DcILZAbM

Quantum Experience Web Tool: The IBM Quantum Experience / https://youtu.be/pYD6bvKLI_c

IBM Fellow Charles Bennett: A Founder of Quantum Information Theory / https://youtu.be/9q-qoeqVVD0

The golden age of quantum https://www.youtube.com/watch?v=XEgWr2n14uI

Inside quantum minds (CAI) / https://www.youtube.com/watch?v=sp2A5JASLZs

Investing in a quantum future (CAI) / https://www.youtube.com/watch?v=Ph7dMRvfdfQ

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IBM: IBM Brings Quantum Computing to the Cloud

Quantum Computing: HorizonWatch 2016 Emerging Trend Brief (External) 12May2016

IBM: Inside the IBM Research Quantum Computing Lab

© 2016 IBM Corporation

IBM Market Development & Insights

Note: This report is based on internal IBM analysis and is not meant to be a statement of direction by IBM nor is IBM committing to any particular technology or solution.

IBMers to follow on Twitter Dario Gil, VP of Science & Solutions: https://twitter.com/dariogila Jay Gambetta, Manager, Theory of Quantum Computing and

Information: https://twitter.com/jaygambetta Jerry Chow, Manager, Experimental Quantum Computing:

https://twitter.com/jmchow Charles Bennett, IBM Fellow: https://twitter.com/chdbennett

9 Quantum Computing: HorizonWatch 2016 Emerging Trend Brief (External) 12May2016

© 2016 IBM Corporation

IBM Market Development & Insights

Note: This report is based on internal IBM analysis and is not meant to be a statement of direction by IBM nor is IBM committing to any particular technology or solution.

Additional selected articles Bloomberg:

Quantum Computers Entice Wall Street Vowing Higher Returns ComputerWorld:

Quantum computing may be moving out of science fiction CSI Communications: Quantum Computing Eurasia Review:

The Quantum Leap Into Computing And Communication: A Chinese Perspective – Analysis

Fast Company: The Golden Age of Quantum Computing is upon us (once we solve these tiny problems)

Forbes: Quantum Computing: From Theory To Reality Fortune:

Microsoft Simulator Brings Quantum Computing One Step Closer to the Masses

IJSEAS: Understanding Quantum Computing MIT Technology Review: Google’s Quantum Dream Machine Netherlands Enterprise Agency:

Alibaba Group invests in joint quantum computing laboratory Science Alert: Quantum computing explained in less than 2 minutes TechRepublic: Quantum computing: The smart person’s guide The Economist: A little bit, better Wired: For Google, Quantum Computing is like learning to fly10

The Economist: A little bit, better

“Quantum computing is moving from theory and experimentation into engineering and applications.” TechCrunch

Quantum Computing: HorizonWatch 2016 Emerging Trend Brief (External) 12May2016

“It is likely that we are on the cusp of a new age in computing called quantum computing. This new area of computing will represent the biggest breakthrough in computer technology since the invention of the microprocessor.” IBM MD&I