The Rise of the Quantum Computing Industry – Identifying the key barriers of adoption of QC-technology as a service

Abstract: The future is here. New digital, disruptive innovations are changing and affecting industries across society. And the emerging Quantum Computing (QC) industry is not an exception. Billions of dollars have been invested by actors such as governments, large enterprises like IBM and AWS, and by smaller to medium firms towards achieving a fully working QC-technology. Therefore, firms who are looking to adopt it must address the barriers that come with it. This thesis therefore explores what barriers, with the objective on key ones, that exist when firms are adopting QC-technology as a service into their business strategy. The geographical scope of this study is the European and North American industries. The applied method is qualitative and based on the methodology of grounded theory where six semi-structured interviews are carried out with key experts in the field . Furthermore, the analytical PESTLE-framework was used to systemically code and categorize the barriers found from the interviews to analyze the political, economic, social, technological, legal, and environmental factors connected to the research question. By using key experts from different parts of the industry and this framework, it resulted in a holistic view of the industry’s barriers. The findings of this study are that the QC-industry is still in its early era with 34 barriers of adoption identified and eight of them deemed to be the key ones because of their significance and frequency of mentions. The eight key barriers are QC-technology is costly, impatient investors, funding issues, lack of consistent revenue streams, lack of awareness from top management, insufficient ecosystem, lack of skilled labor and immature technology. The most important minor barriers of the other 26 include lack of standardization and benchmarks, lack of collaboration between certain geographical parties, misinformation from vendors and not using external advisors. Nonetheless, the QC-technology is on the up-rise and is projected to affect industries across the world. Firms in these industries must therefore learn to adopt to the dynamic changes that come with what the QC industry brings. Therefore again, it is the intention of this thesis to explore the key barriers and mitigation strategies to overcome them.