This month at , we announced a wave of 麻豆原创 Business AI innovations all built on the same technology foundation that powers our that we are now delivering to our customers and partners, allowing them to add even more value in the future.

We showed how the future of enterprise software is built on an AI-native architecture, powered by 麻豆原创 app, data, and AI foundation. With this approach, we are enabling a platform shift across the tech stack in a non-disruptive fashion, empowering developers to work faster and smarter using the frameworks and tools of their choice.

麻豆原创 HANA Cloud and 麻豆原创 Business Data Cloud: powering our AI-native future

麻豆原创 HANA Cloud is the database for 麻豆原创鈥檚 AI-native software architecture and the foundation of our broader data fabric strategy. At 麻豆原创 TechEd, we announced new AI capabilities for 麻豆原创 HANA Cloud that spur AI innovation.  

For example, Model Context Protocol (MCP) support for 麻豆原创 HANA Cloud is now generally available. This provides direct access to rich multi-model engines. Agents can be grounded in full enterprise data context: navigating relationships across customers and suppliers, understanding geographic dependencies through spatial data, and performing semantic searches through vector embeddings — all within a single in-memory engine.  

We鈥檙e also expanding 麻豆原创 HANA Cloud knowledge graph engine capabilities (Q1 2026) so customers can automatically generate knowledge graphs from 麻豆原创 HANA Cloud metadata. What used to take weeks of manual modeling can now happen automatically in minutes. But that鈥檚 not all. We鈥檙e also enabling agentic memory in 麻豆原创 HANA Cloud. With long-term memory, AI agents can memorize past inputs and decisions — learning and remembering just like humans — and become continuously smarter.

These advances show that 麻豆原创 HANA Cloud is truly powering an AI-native future. .

Bringing together the power of 麻豆原创 BDC and Snowflake

We are bringing the power of Snowflake together with 麻豆原创 Business Data Cloud (麻豆原创 BDC), calling it 麻豆原创 Snowflake. This partnership enables zero copy data sharing with Snowflake via 麻豆原创 BDC Connect.

Enterprises already using Snowflake today can leverage 麻豆原创 BDC Connect to integrate their existing instances of Snowflake with 麻豆原创 BDC, giving them seamless, real-time access to combined, semantically rich 麻豆原创 with non-麻豆原创 data in 麻豆原创 BDC. 麻豆原创 Snowflake will be made generally available in Q1 2026, and 麻豆原创 BDC Connect for Snowflake in H1 2026. Find more information here.

麻豆原创-RPT-1: a new category of AI models

One of our most exciting announcements at 麻豆原创 TechEd was the launch of our first enterprise relational foundation model 麻豆原创-RPT-1, pronounced: 鈥渞apid one.鈥�

Businesses run on structured data. But large language models (LLMs) struggle with a general understanding of table structures and associated semantics. This requires the use of machine learning, or 鈥渘arrow AI,鈥� for tasks like classification, regression, and more. But classical machine learning necessitates training a model on each task, which easily can lead to hundreds of separate models.

麻豆原创-RPT-1 puts them all into one single, pre-trained model that understands relational business data and predicts business outcomes. Unlike language, image, or video models, 麻豆原创-RPT-1 accurately predicts business based on tabular data such as payment delays, supplier risks, upsell opportunities, customer churn risk, and more.

We believe that 麻豆原创-RPT-1 is a super capable foundation model today. It provides up to 2x better prediction quality compared to narrow models and 3.5x better prediction quality as compared to LLMs. .

麻豆原创-RPT-1 comes in three versions. 麻豆原创-RPT-1-small is for super-fast predictions and 麻豆原创-RPT-1-large is for highest accuracy. Both will be generally available in Q4 2025 in the generative AI hub in AI Foundation. 麻豆原创-RPT-1-OSS is the open-source version, available in Hugging Face and GitHub.

You can test 麻豆原创-RPT-1 today with your data or our use case data samples via no-code UI or via API in the new 麻豆原创-RPT-1 playground, an intuitive and interactive space to test for free and open to everyone and .

We are continuously adding new capabilities to AI Foundation and models to the generative AI hub, empowering developers to experiment with orchestration tools and leading models to scale AI development and productization across 麻豆原创 and non-麻豆原创 environments. For example, Perplexity is now generally available in the generative AI hub, so users can correlate business data with external data from the internet. Evaluation Services and Prompt Optimizer, in close collaboration with NotDiamond, are now also generally available in AI Foundation, freeing up users to adopt the most appropriate model for their use cases without the need for rewriting prompts. .

Digital sovereignty made in Germany, for Europe

Digital sovereignty is becoming increasingly important, reflecting the need for regional AI services that align with local regulations, standards, and values. As an example, Europe will benefit from its own strong, trustworthy infrastructure to support innovation, data protection, and ethical AI.

AI Foundation, including various models and all the services we offer, is already available on our own cloud infrastructure. As a next step, we are expanding our 麻豆原创 Cloud Infrastructure offering in our 麻豆原创 data center in Walldorf, Germany, to Deutsche Telekom through the Industrial AI Cloud project, providing secure, high-performance infrastructure for AI innovations across public institutions, defense, and society. 麻豆原创 delivers 麻豆原创 Cloud Infrastructure, 麻豆原创 Business Technology Platform, and applications 鈥� including our AI Foundation with frontier AI from Mistral, Cohere, and others 鈥� on Telekom鈥檚 Munich data center. Both companies uphold the highest standards of data protection, security, and reliability.

This marks a milestone as more European companies join the Industrial AI Cloud project, advancing applied AI across Europe with trusted, business-embedded solutions that unlock the full potential of industry data. See the announcement here.

Enabling customers to build, extend, share, and orchestrate AI agents

To help manage Joule Agents and Joule skills, we have introduced the concept of AI Assistants 鈥� role-based AI teammates, accessed through Joule 鈥� like a financial assistant that brings together agents for cash collection, treasury, and more. We will provide AI Assistants in Joule for every core business role, offering our users an agentic experience like never before.

Out-of-the-box Joule Agents are powerful, but we know that every company has unique requirements. We believe AI should adapt to users鈥� systems, not the other way around, so we are enabling them to use Joule Studio to extend 麻豆原创鈥檚 pre-built agents with custom fields, tools, and reasoning logic while retaining all the deeply grounded integration capabilities 麻豆原创 provides. Joule Studio also provides low-code tools to build custom agents that integrate with all other Joule Agents, Joule skills, and 麻豆原创 BDC.

Using a low-code approach, users can build Joule Agents visually with natural language and drag-and-drop. But we also want to meet the needs of developers who want ultimate flexibility. Our pro-code approach gives developers the freedom to build agents using the agentic framework of their choice 鈥� for example, LangGraph, CrewAI, Google鈥檚 Agent Development Kit, and more. 麻豆原创 Cloud SDK for AI now supports agentic development, ensuring these pro-code agents can be seamlessly integrated and giving developers the best of both worlds: deep integration and full flexibility.

No matter how you want to build agents, an important question is how to integrate them into the larger ecosystem beyond 麻豆原创. We鈥檙e making Joule Agents fully compatible with the agent-to-agent (A2A) protocol soon, so agents can discover and collaborate with each other.

A2A exposes rich semantics describing an agent鈥檚 capabilities, allowing both 麻豆原创 and third-party agents to work together seamlessly. We are collaborating with partners 鈥� AWS, Google, Microsoft, ServiceNow, and more 鈥� to standardize this protocol for full interoperability. This capability will allow Joule to orchestrate tasks across multiple agents, both 麻豆原创 and non-麻豆原创, increasing automation and productivity across the enterprise. Read more here.

To manage and govern agents across the enterprise, is now generally available, providing centralized control of 麻豆原创 and non-麻豆原创 agents. In addition, is available now for tracing agent actions, benchmarking against KPIs, and identifying bottlenecks or opportunities for agents to further improve business.

No 麻豆原创 TechEd without ABAP news

The ABAP journey continues with 麻豆原创-ABAP-1, which will be available in the generative AI hub in Q4 2025. Trained on ABAP code, it is designed to build ABAP AI use cases, enabling developers to build smarter, custom AI solutions in modern ABAP code. .

In addition, ABAP Cloud development is coming to Visual Studio (VS) Code. The new ABAP Cloud extension for VS Code delivers a streamlined, file-based development experience with built-in AI assistance. Powered by an ABAP language server, it will initially support 麻豆原创 Fiori UI service development and expand to additional ABAP Cloud scenarios over time. This brings ABAP development into the same environment where developers already build with UI5 and CAP. General availability is planned for Q2 2026. .

What鈥檚 next: embodied AI and quantum

麻豆原创 TechEd is always an opportunity to look to the future. This year, that future includes not just humans, but also autonomous devices, including humanoid robots.

By integrating Joule Agents natively with robots, 麻豆原创 is bringing business logic into the physical world, enabling a wide range of autonomous devices to operate with enterprise context. We highlighted our strategic partnerships with robotics companies and system integrators to serve customers like Sartorius, Bitzer, and Matur Fompak, demonstrating how our expanding physical AI ecosystem enables robots to understand business processes and execute complex tasks autonomously.

Early proof-of-concept deployments show Joule successfully integrated with 麻豆原创 business applications and autonomous systems across asset performance, logistics, field services, and warehouse operations. While still in the pioneering stage, these implementations illustrate how 麻豆原创 is extending Joule to serve both human users and autonomous devices, shaping the future of enterprise AI.

Read more about the partnerships and implementations here.

AI is a new compute paradigm that changes everything. But there is another compute paradigm on the horizon: quantum computing. It鈥檚 early days, but 麻豆原创 is driving the future of enterprise computing with a vision to help businesses get ready for quantum computing.

麻豆原创 is not building quantum hardware; instead, we are focusing on creating quantum algorithms for business applications. These solutions are simple to deploy 鈥� on when needed, off when not 鈥� and are designed to be hardware-agnostic, collaborating with partners such as IBM to ensure seamless integration without re-platforming. This approach will enable organizations to unlock operational efficiency and drive better business results at enterprise scale.

I couldn鈥檛 be more excited about what鈥檚 next for our customers鈥� future as we bring 麻豆原创鈥檚 AI-native architecture to life.

Philipp Herzig is CTO of 麻豆原创.

If you ask a quantum researcher what keeps them awake at night, error correction might be their likely answer. And so, while quantum computing still makes great strides, the quantum advantage can sometimes be overstated in the press. To mitigate this, however, a new type of quantum-inspired computing is coming of age. What started as simulated annealing has given rise to dedicated simulated annealing machines. These typically work on optimization problems, finding the best way to do something.

Harnessing Fujitsu鈥檚 Digital Annealer Unit for Efficient Optimization

(DAU) is a quantum-inspired machine. It works by finding the optimal combination when presented with a list of possible combinations, and it works fast. Last year, 麻豆原创 ran a proof of concept with Fujitsu to test and benchmark its DAU 鈥� with some promising results.

As mentioned in a recent , the DAU was tested against some rather abstract but standardized research problems from the (QPLIB). We also tested the possibility to seamlessly integrate 麻豆原创 solutions with the DAU, proving a simple execution to start. As a result, 麻豆原创 was able to demonstrate that the DAU has real potential and marks an important milestone in the progress of quantum-inspired computing towards practical, real-world, standard business solutions. We are currently working with Fujitsu to extend this potential to other optimization problems, like creating more efficient for manufacturing, , and ultimately an even broader use case application.

While still a proof of concept, these connections and benchmarking results demonstrate the potential for simulated annealing to deliver on real-world problems, such as balancing the load across all manufacturing tool sets, by using the DAU as a machine dedicated to the task of optimization, rather than a universally reprogrammable computer.

As a world-leading enterprise application provider, 麻豆原创 continues to help innovate and bring the benefits of quantum-inspired computing to customers through our solutions.

Benchmarking Against Current Optimization Methods

Before committing more resources, 麻豆原创 wanted to test the DAU against problems that serve as industry or academic standards for optimization. This is where the QPLIB comes in. It is essentially a huge repository of math problems, none of which are mapped to potential use cases but all of which can determine what kind of problems the DAU might excel at. The advantage of this approach is that it allows us to benchmark against current optimization methods, although the use case context has been removed. Take the example of a drug trial, where scientists test the new drug in test tubes against drugs already on the market. It may not show side effects, but it will show whether it鈥檚 worth risking trials on living subjects.

The DAU takes a Quadratic Unconstrained Binary Optimization (QUBO) problem as its input, which sets up the cost-benefit matrix. It then outputs a string of 1鈥檚 and 0鈥檚, telling the user whether it is optimal to include, for example, a unit of stock, where the variance is to be minimized. The key is that it must either be faster or output a more optimal solution.

Most quantum computers run their . Fujitsu鈥檚 approach was inspired by quantum annealing, a technique that specializes entirely in optimization. Although quantum annealing makes great progress in the number of qubits (quantum bits), it is subject to similar limitations of error. The advantage of Fujitsu鈥檚 quantum-inspired approach is that it relies on existing hardware, eliminating the need for expensive cryogenic cooling.

It is 麻豆原创鈥檚 sincere hope that this quantum-inspired optimization can help our customers bridge the optimization gaps until quantum hardware becomes more reliable. The incorporation of Fujitsu’s DAU into 麻豆原创 technology helps establish a platform designed to tackle the impending gaps in the years ahead. This remarkable advancement is a key achievement in 麻豆原创’s journey towards the next era of enterprise software, aiming to enhance business operations and foster value creation.

Together, 麻豆原创 and Fujitsu are pushing the boundaries and redefining what is possible, as the industry looks to a future transformed by the advancements in quantum-inspired computing.

Paul McElligott is a fellow in the Quantum eXplorers Group at 麻豆原创.

While it might be early days given hardware limitations, 麻豆原创 experts are in full-on discovery mode, working with customers and partners at quantum-related industry associations.

How Quantum Computers Can Solve Real-World Problems

麻豆原创 experts are spearheading several working groups as members of the . QUTAC is a German-based group focused on applying quantum technology for business value in various industries. In one group, the team is modeling potential use cases using quantum computing for optimization and machine learning in production and logistics. In another, they are researching various quantum computing systems to compare strengths and weaknesses for use case consideration.

鈥淲e鈥檙e trying to understand how quantum computers can solve real-world business problems,鈥� said Andrey Hoursanov, head of Quantum Exploration at 麻豆原创. 鈥淚n collaboration with other QUTAC members, we鈥檙e identifying which next new quantum computing use cases will be most valuable for organizations, sourcing information from external research and our own expertise.鈥�

Working Groups Take On the Quantum Challenge

Quantum computers can speed up computationally intensive tasks, promising the delivery of better and faster solutions for specific classes of problems. Much of this exploratory phase consists of benchmarking available quantum technologies, such as available machine capabilities by qubit size to handle industry-specific problems. Questions include what special properties each kind of quantum system offers, as well as their suitability and scalability to address business relevant challenges. For example, some teams are focused on applying the unique advantages of quantum computers to speed up and improve anomaly and fraud detection, cost optimization for cloud providers, image recognition, and data synthesis.

鈥淭hrough open discussions with different companies that are participating in these working groups, we鈥檙e discussing potential road maps for innovation,鈥� said Peter Limacher, leading researcher of the Quantum Exploration team at 麻豆原创. 鈥淧eople are very interested in quantum computing, and we want to make sure that we prioritize use cases that have the greatest potential to deliver business value.鈥� 

Limacher was involved in a working group that recently published a based on a study of quantum computing approaches for multi-knapsack optimization, meaning one recurrent task that several industries face. In addition to the high demand for better quantum hardware, the paper concluded that the industry needed more and improved quantum optimization algorithms for multi-knapsack and other problems.

麻豆原创 Is Committed to Meet Enterprise-Grade Expectations

To be clear, there鈥檚 a significant gap between the performance of current quantum computer hardware and the many variables that require scaling quantum-driven solutions in actual industry settings. Forward-thinking innovators are moving ahead despite the chicken and egg conundrum.

鈥淭o meet our customers鈥� expectations, we cannot wait until full-fledged quantum computers are completely operational,鈥� said Hoursanov. 鈥淭hrough collaborative use case discovery and testing, we鈥檒l be prepared to provide customers and partners with access to the latest technology as soon as it makes sense for them.鈥�

Just as standardized frameworks for classical computers evolved, so will quantum computers. There are no standards yet, and every quantum computer design has advantages and disadvantages. For example, superconducting quantum computers require low temperatures and protection from electromagnetic waves to prevent qubit degradation. Eventually, researchers will be able to match targeted use cases to the best-suited quantum systems and software application developers will apply quantum programming to any machine.

Collaboration Unlocks the Quantum Advantage

麻豆原创 is also a member of the , a non-profit organization focused on developing the quantum industry and ecosystem for the region and others including North America, Japan, and ANZ. In addition to her role as research project director at 麻豆原创, Laure Le Bars is president of QuIC.

鈥淥ur members consist of companies of all sizes that create and use quantum technologies, including hardware manufacturers and software developers. They鈥檙e working together with members in government policymaking, academia, standardization bodies, and others to help spark market growth from quantum advantage,鈥� said Le Bars. 鈥淚n the future, we鈥檒l have hybrid architectures with a combination of classical and quantum computers using their respective strengths to achieve business objectives.鈥�

Susan Galer is a communications director at 麻豆原创. Follow her @smgaler.

Photo courtesy of 麻豆原创 employee Renan d’Avila

Leveraging quantum mechanical effects such as superposition, entanglement, and interference, quantum computers could soon be able to solve certain problems exponentially faster than classical computers. The disruptive power of quantum already shows promise in fields of application spanning from material science and cryptography to business optimization and AI.

A year ago, I tasked a team within 麻豆原创 to study the unique features of quantum computers, with the goal to investigate how these features could solve complex business problems more quickly, accurately, and on a larger scale than ever before.

At the recent in New York, we presented the integration of IBM Quantum services into our as a proof of concept. This marks an important milestone in the progress of quantum computing towards practical, real-world standard business solutions.

It is 麻豆原创鈥檚 mission as world-leading enterprise application provider to deliver the benefits of quantum computing via our solutions to our customers.

While still a proof of concept, this engine鈥檚 connection to quantum systems demonstrates the potential for quantum computing to solve real-world business problems, such as packing a truck with assorted beverages, using a fundamentally new approach. Instead of simulating every possible packing combination, the quantum solver leverages the inherent parallelism of quantum to evaluate multiple possibilities, showing how to find a significantly superior solution than a classical computer.

In recognition of the rapidly evolving quantum computing ecosystem, 麻豆原创 partnered with , which offers a comprehensive suite of quantum hardware, software, and services accessible via the IBM Cloud and has an impressive multi-year technology road map.

How did we approach this?

Our exemplary standard component, vehicle space optimization, is directly leveraging quantum computing capabilities, fully automized within our application and technology environment. At the core of this innovation is the enhancement of 麻豆原创鈥檚 optimization engine through the incorporation of a potent quantum solver.

Quantum optimization today is about tackling quadratic optimization problems. We augmented the optimization engine with the capabilities to map a business problem to such a quadratic formulation to then feed the quantum computer. This allows us to leverage different algorithms; for example, the well-known . The results coming back from the quantum computer, which are inherently probabilistic, are then post-processed within the optimization engine.

Going one level deeper into the specifics, while high-level programming languages are common in classical computing, quantum computers today are programmed by formulating . With our approach, we encapsulate the complex specific implementation of the quantum circuit within our engine, so that ultimately our ecosystem — customers, consultants, developers — will be able to leverage quantum computing for business problems without studying quantum physics.

Despite the excitement surrounding these developments, 麻豆原创 acknowledges that quantum computers in the current noisy intermediate scale quantum computing (NISQ) era are still too small and too noisy to deliver superior results directly. However, significant progress in the scale and quality of quantum computing in recent years prompted 麻豆原创’s collaboration with IBM to explore the current frontier of quantum computing.

The integration of IBM Quantum systems into 麻豆原创’s cloud-native optimization service results in a platform to address the gaps that need to be bridged in the coming years. This significant step marks a crucial milestone in 麻豆原创’s journey toward the next generation of enterprise software for better business operations and value creation.

As 麻豆原创 continues to push the boundaries of what is possible, the industry watches with anticipation, ready for a future reshaped by quantum computing.

Philipp Herzig is head of Cross Product Engineering and Experience at 麻豆原创.

Top image courtesy of 麻豆原创 employee Sangeetha Krishnamoorthy.

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鈥淚ndustries are central to our number one objective to establish a thriving commercial quantum ecosystem,鈥� said Laure Le Bars, research project director at 麻豆原创. 鈥淭o realize that mission, we need to understand the potential for business and citizen value by industry, identifying the opportunities and how our members and their communities can take advantage as the market evolves.鈥�

Le Bars, who is also president of QuIC, said that the association will share the Strategic Industry Roadmap with the , which is developing quantum tech policies and plans within the and . Staffed with its first and backed by a membership roster that鈥檚 a veritable who鈥檚 who of quantum experts, QuIC is moving ahead on multiple fronts to help the region seize the quantum opportunity. A check-in with some founding members bore that out.

VC Optimism about Quantum Growth

QuIC鈥檚 ecosystem is a healthy resource for a venture capitalist (VC) group like , a firm dedicated to investing in quantum-related startups. Many of Quantonation鈥檚 portfolio companies are already members.

鈥淲e鈥檙e looking at how to help startups with increased funding for research and in other ways like education and training,鈥� said Christophe Jurczak, founder and managing partner at Quantonation. 鈥淨uantum startups are growing, and we expect to see some proof of concepts and products that potentially demonstrate commercial benefits with real-life results for European citizens during the next few years.鈥�

Industry road mapping helps investors realistically assess the maturity of these technologies, along with the dynamics between participants, including established and new vendors, researchers, and government policymakers. Especially for a VC firm, timing is everything.

鈥淲e’re investing early stage and need to know if it’s too late or too early,鈥� said Jurczak. 鈥淚ndustry road maps can help us understand what different entities bring to the table, what these technologies will mean for them, and how they can work together to overcome adoption barriers.鈥�

Quantum Computer Uptake Starts in Public Sector

Publicly funded, high-performance computing (HPC) centers could be among the initial routes to quantum computing uptake. A co-sponsored by , a Finland-based quantum computer company, found that 27% of HPC centers worldwide were experimenting with quantum computing and predicted 76% will use it by 2023. As a 鈥渇ull stack provider鈥� that builds and assembles quantum computers, IQM will need supply chain resilience, along with the infrastructure that produces the chipsets, and software for the machines.

鈥淲e need to align public and private industry decisions around research, funding, and, especially, standardization,鈥� said Jan Goetz, CEO and co-founder of IQM. 鈥淛ust as important is education. The industry needs to scale talent proportionately to market growth, with self-education and partnerships with academia. We鈥檙e also exploring the connections between all quantum technologies 鈥� communications and sensing, and even quantum Internet 鈥� to see what a quantum-enabled future of the world might look like.鈥�

Making Quantum Computing Easy for Anyone

Already, has begun delivering a 鈥渜uantum and quantum inspired toolbox鈥� with an intuitive front end to the desktops of financial professionals who use it to optimize investments 鈥� no advanced physics degree required. While the company specializes in innovations for finance, there鈥檚 strong potential for in many sectors.

鈥淭he quantum computer revolution will arrive much sooner than expected,鈥� said Enrique Lizaso, CEO at Multiverse Computing. 鈥淭hat doesn鈥檛 mean quantum supremacy; it only means companies gain speed, efficiencies, and cost-savings from far better solutions. We are starting to deploy quantum solutions for banks and have projects in smart manufacturing with leading European companies in logistics and clean energy.鈥�

Plug and Play Quantum Tech

While quantum processors aren鈥檛 a reality yet, has released in beta a quantum software platform for chemistry. In addition to quantum software that鈥檚 integrated with traditional computing applications, the Netherlands-based company develops quantum algorithms for industry use cases.

鈥淯sers of our platforms can bring quantum solutions directly into their existing computational workflows, staying within their familiar software applications,鈥� said Benno Broer, CEO at Qu & Co. 鈥淚n the future, they will benefit from improved accuracy and scaling without the need for years of training in quantum computing. It’s plug and play.鈥�

Broer expected quantum technologies will become practical business tools with benefits for numerous industries including aerospace, automotive, electronics, finance, and life sciences.

Quantum Epitomizes Art of the Possible

Tanya Suarez, CEO of , a European-based management consultancy focused on technology adoption, joined the QuIC governing board to be at the forefront of technology ecosystems impacting future industries.

鈥淨uantum promises better solutions more quickly to seemingly intractable problems like climate change or sudden emergencies requiring immediate action such as pharmaceutical developments to combat COVID-19,鈥� said Suarez. 鈥淲e鈥檙e exploring technical and practical business considerations around how quantum technologies will evolve, helping us demystify what Einstein once called spooky actions at a distance.鈥�

While some quantum technologies, like computing, aren鈥檛 fully imminent, organizations cannot ignore them, even if immediate business demands are urgent. Leaders are pushing the boundaries of what鈥檚 possible and taking action to harness quantum technology鈥檚 promising yet peerless computational power.

Follow me @smgaler

Will quantum computers usher in a ? Which quantum technologies can 麻豆原创 deploy? The 麻豆原创 Security Research team is tasked with looking into these questions and exploring ways of harnessing the exponential computer power quantum computing promises. At the same time, protecting business-critical data must remain a priority, because as quantum computing advances, its raw computing power poses an increasing threat to today鈥檚 encryption schemes as quantum technologies might decode them relatively quickly.

鈥淲e began looking into quantum technologies about five years ago. We鈥檙e now examining its implications for areas such as data security,鈥� says Andrey Hoursanov, strategy lead for Quantum Technology at 麻豆原创 Security Research.

Quantum Computers Are Quicker and Not Binary

Experts agree on the huge potential of quantum technologies, which comprise quantum computing, communication, simulation, sensing, and post-quantum cryptography. According to a , quantum computing could have a global market value of US$1 trillion by 2035.

Already, annual investments across the world are estimated to be , and analysts at IDC that 25% of the Fortune Global 500 will gain competitive advantage from quantum computing by 2023.

Quantum computing represents a paradigm shift in data processing. A classical computer is an electronic device that processes information in binary bits that can assume only one of two possible states, 1 or 0. By contrast, the processes in a quantum computer take place at the physical particle level. The basic units of information in a quantum computer are quantum bits, or 鈥渜ubits.鈥� They follow the laws of superposition, interference, and entanglement, which means that they can occupy more than one state at the same time and are interdependent 鈥� allowing data to be processed simultaneously rather than sequentially. Computing power might for some algorithms with each additional qubit.

Learn more: What is Quantum Technology?

鈥淚f quantum technologies realize their potential, we may in the future be able to solve complex tasks that even the most powerful supercomputers fail at today,鈥� says Martin Heinig, head of New Ventures and Technologies at 麻豆原创.

In logistics, for example, the optimal route, mode of transportation, and product quantity for deliveries could be identified at each point in the supply chain and updated in real time as conditions change. For other industries too, enterprise software solutions from 麻豆原创 could simulate business processes more easily and infinitely faster.

Quantum technologies could also massively accelerate machine learning in 麻豆原创 solutions by making artificial intelligence (AI) super-intelligent and allowing training data to be fed into the software more quickly.

Making Conventional Encryption Quantum-Safe

But the benefits of the immense computing power promised by quantum technologies also pose a major challenge to conventional encryption methods. Encryption schemes that were considered safe by classical computing standards are no match for quantum computing paradigms. Quantum hackers could use this immense computing power to quickly crack encryption keys in conventional cryptographic systems, read encrypted messages, and create fake signatures. Customers expect 麻豆原创 to ensure the confidentiality, integrity, and availability of their business-critical data and processes at all times.

For 麻豆原创, preparing for the quantum era means securing critical and sensitive data using post-quantum and quantum-resistant cryptosystems.

麻豆原创 continuously analyzes new cryptographic algorithms and has already developed several proofs of concept to test the feasibility of algorithms that researchers have deemed 鈥渜uantum-safe鈥� and capable of guarding against hacker attacks, data leaks, and espionage.

What 麻豆原创 Is Doing

麻豆原创 has been conducting research into quantum technologies for many years and has built up considerable expertise in the process.

According to Hoursanov, who has been driving 麻豆原创鈥檚 quantum technologies initiative from the get-go: 鈥淢any customers are already asking where 麻豆原创 is on its quantum tech journey. After all, we have shared interests in exploiting the technology. It鈥檚 about optimizing supply chains, logistics, warehouse management, perhaps portfolio optimization in financial services. And, finally, it鈥檚 about data security.鈥�

The 麻豆原创 Security Research team is highly committed to the quantum security community. They prototyped embedding a quantum-safe signature scheme for software packages. And their work on identifying use cases and weak points in quantum communication involves checking data during transmission and the key distribution and management infrastructure.

Making quantum technologies commercially viable requires cooperation between industry and academia and involvement in multidisciplinary consortia. 麻豆原创 is part of the , one of the EU鈥檚 largest research initiatives, and a founding member of both the and the , where it is working with leading experts, quantum technology players, and future consumers of quantum technologies 鈥� many of which are 麻豆原创 customers.

Although quantum technologies cannot yet be fully deployed for practical reasons, it is already clear that they offer enormous opportunities in data processing, particularly when it comes to secure communication and solving complex problems efficiently. 麻豆原创 has a significant stake in this exploration journey.

The most discussed use cases for quantum computers are the ones where complex models that require enormous combinatorial computation power are applied to a problem. This includes combinatorial optimization problems such as supply chain logistics, where coordinating and identifying the most efficient route for goods to travel to market has been one of the most sought-after goals for both business and science.

Another domain of application could be financial services, where market prediction models are used for predicting important, disruptive events to the broader economy to drive portfolio decisions. Quantum computing is also expected to enhance machine learning, which may accelerate for instance the training of neural networks.

Still in Early Days, but Advancing Fast

Quantum computing is a multi-year journey. While the quantum computing market is expected to reach , nobody yet knows when we will see widespread adoption at an enterprise scale. Companies including IBM, Google, Honeywell, and IonQ are making progress harnessing quantum-computational units (qubits) for early-stage computers.

However, it is still unclear when a general-purpose quantum computer superior to classical computers in solving business-relevant problems will be available. Several major technical and conceptual challenges need to be overcome first including increasing the number of qubits, while keeping or extending their coherence-time (useful time) and their inter-connectivity.

麻豆原创鈥檚 approach is to work with leading experts and quantum technology players in academia and industry on developments in this field. We are assessing the timescale as well as potential domains of application and how they might impact the future of 麻豆原创 and our customers.

Now Is the Time to Prepare for the Quantum Era

While quantum computing opens many new doors in a wide variety of fields, it can also be a security threat. With the advances in quantum computing, conventional cryptographic schemes are becoming more vulnerable. That鈥檚 why it鈥檚 critical for businesses to prepare for post-quantum cryptography today that is resistant to attacks by both classical and quantum computers. The 麻豆原创 Security Research team in the is highly engaged in quantum security and currently works on benchmarking post-quantum cryptography algorithms and more.

Cryptography is the last line of defense against data breaches. When all other security measures have failed, encryption provides the last barrier that protects company secrets against unauthorized access. The current progress in the development of quantum computers and their ability to break conventional encryption schemes requires companies to act now. Considering the longevity of sensitive information in government affairs or the pharmaceutical industry, this data could be collected today and stored until a powerful quantum computer is available to decrypt them.

To be prepared once a quantum computer becomes available, businesses need to think ahead. A good starting point is a relevance and impact analysis to help plan for the inevitability of consequences and their cost. This analysis also includes identifying uses cases that could benefit from applying quantum computing. The better equipped businesses are to recognize and prepare for the opportunities and risks posed by quantum computing, the more likely they are to be able to continue doing business in the future. Businesses are then well advised to work closely with industry leaders and academic partners to exchange research results, build strategic road maps, and find common applications and use cases in different areas.

No Business Can Do It Alone

麻豆原创 works with industry leaders and top research centers and participates in several initiatives to explore quantum technology and potential use cases. For instance, 麻豆原创 has been involved in the from the beginning and is a founding member of the (QuIC), and others.

Most recently, 麻豆原创 joined the new (QUTAC) along with global corporations such as BASF, BMW, Bosch, and others to advance developments in quantum computing for practical application. Within QUTAC, 麻豆原创 will drive the use of quantum computing in logistics, production, or procurement. Our focus is on developing software applications to optimize transport routes, supply chains, or production plans. This can help companies reduce costs, improve delivery reliability, or avoid empty runs.

At 麻豆原创, we work to leverage the advances in quantum tech for our customers while protecting their business-critical data. I鈥檓 excited for the quantum future ahead of us — stay tuned for more to come!

Martin Heinig is head of New Ventures and Technologies at 麻豆原创.
This piece was originally published on LinkedIn.

Unleashing Your Inner Quantum Physicist

You don鈥檛 necessarily have to understand the intricacies of quantum physics to experience its value. Anyone that鈥檚 had an MRI has benefited from , which has been around for decades in medical diagnostics. Quantum computing, quantum simulation, and quantum internet are advancing at different levels of maturity.

鈥淨uantum technologies take the faster, better innovation race of the past 75 years to another innovation level,鈥� said Laure Le Bars, research project director at 麻豆原创. 鈥淚n this second revolution, we鈥檒l understand the theory behind it better and be able to control it more with a progressive, incremental approach, collaborating to explore the possibilities and benefit from each other鈥檚 ideas.鈥�

Quantum Tech Innovation Network

Le Bars was recently appointed president of the , a non-profit organization dedicated to explore quantum innovation for the region and, by extension, worldwide. Founded to serve as a collaborative network of networks, QuIC鈥檚 members come from companies of all sizes and industries, including small and mid-sized businesses (SMBs), venture capitalists, academia, research, government, and industrial associations.

鈥淏uilding a strong community of quantum technology experts from all sectors is the best way to boost European industry competitiveness,鈥� said Le Bars. 鈥淲e will support excellence in research and business as we help bring structure and continuity to quantum technology research, innovation, and eventual development and deployment of these technologies.鈥�

Equitable Platform for Quantum Exploration

As a co-founding member of QuIC, 麻豆原创鈥檚 strategy is aligned with the association鈥檚 commitment to business networks for fair and equitable innovation that helps organizations become .

For example, it鈥檚 no coincidence that two-thirds of the organization鈥檚 current members are SMBs and startups. The QuIC ecosystem was designed to attract SMBs, giving them entr茅e to the latest technologies and a strong market voice. shows that startups (40%) and universities (33%) comprise the majority of players involved with quantum computing.

鈥淲e鈥檙e providing SMBs with direct access to the expertise of our members who can share their knowledge and clout across industries, academia, and government,鈥� said Le Bars. 鈥淭hey can exchange ideas and might even find project partners to develop solutions for customers. is a perfect example of the power of networks for fast innovation.鈥�

Collaboration with European Commission to Fuel Quantum Progress

QuIC is also collaborating with the as part of that organization鈥檚 commitment to regional quantum technology progress.

鈥淲e want to work with a representative group of companies to help bring research out of the lab and into the real world with practical applications across industrialized products,鈥� said Dr. Gustav Kalbe, head of the High Performance Computing and Quantum Technologies unit at the European Commission. 鈥淨uIC helps us understand what support the industry needs, allowing us to develop EU policies that facilitate market entry and opportunity materialization.鈥�

Opening the Doors to Quantum Technologies

Dr Kalbe鈥檚 unit at the European Commission develops and carries out the organization鈥檚 policies on high performance computing and quantum technologies. A long-time European Commission official, Dr Kalbe has been involved in the agency鈥檚 quantum-related policy initiatives since its start in quantum information processing and communications (QIPC) over 20 years ago.

鈥淏ringing together the industry at-large, we can foster a virtuous cycle of continuous innovation between organizations making the machines and those who will use them,鈥� he said. 鈥淲e can collectively address use cases, manufacturing ability, product usability, interoperability, and standardization. As different industry players interact on pre-built operating systems with testing and pilots, they鈥檒l have more time to target the next level of complexity, integrating new components for faster market growth from quantum advantage.鈥�

QuIC has designated working groups to build strategic industry road maps, identify gaps in the quantum technology sector, and explore applications and use cases. Some groups will explore pre-standardization and IP-related issues that typify new industries.

鈥淲e鈥檙e not defining IP or standards, but our members will collaborate with other stakeholders like standardization bodies and each other to discuss what baselines are needed for quantum technology advancement,鈥� said Le Bars. 鈥淪imilarly, we won鈥檛 become a university, but we鈥檒l collaborate with institutions of higher learning to define the people skills we need and share that with educational organizations that are defining curricula.鈥�

Quantum Tech Made Easy for Business

The good news for business leaders is that you won鈥檛 have to be a quantum physicist to use these technologies as they emerge.

鈥淧ioneers are asking questions about how to integrate quantum with their products and business plans,鈥� said Dr. Kalbe. 鈥淢any industries will see results from the brilliant entrepreneurs and engineers who will find the most innovative and unexpected ways of using quantum technologies in everyday business.鈥�

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Originally popular as fail-safe security for bitcoin enthusiasts, blockchain is making inroads across numerous industries, most notably as a track-and-trace tool proving the provenance of goods across vast supply chains. Blockchain-based security may be even more valuable in managing supply and demand shocks during and after the pandemic. However, as blockchain services grow and quantum computers begin to emerge, now is the time to start thinking about quantum-resistant blockchain.

鈥淥nce quantum computers can break the cryptography being used today, blockchain loses its immutability,鈥� said Cedric Hebert, senior researcher at 麻豆原创 Security Research. 鈥淲e wouldn鈥檛 be able to trust new transactions on a blockchain that wasn鈥檛 meant to resist quantum-fueled attacks. Companies will need to adopt new protocols to resist quantum attacks.鈥�

Right now, it is difficult to go backwards on a blockchain鈥檚 immutable ledger and change original information in each block of the chain. This is especially the case as blocks are added with more data. People cannot easily rewrite history on its immutable ledger because other nodes on the chain would automatically reject any changes. Also, traditional blockchains are based on asymmetric cryptography, which prevents fraudulent signing. Unfortunately, quantum computers could theoretically break the immutability of any block in the chain and falsify historical transactions.

鈥淐ompanies can use blockchain technology if they incorporate quantum-resistant encryption protocols,鈥� Hebert said. 鈥淵ou would need to freeze the blockchain at some point and migrate transactions to the new protocol.鈥�

Prepare Now for Post-Quantum Security

Even if a fraction of the predictions about blockchain come true, the security stakes are high for consumers and businesses.

Blockchain made list of top 10 strategic technology trends for 2020 and was predicted to infiltrate everything from processing insurance claims, loans, and recalls to identity management for students, patients, and citizens. By 2022, analysts said 10 percent of the world’s adult population will register for a blockchain-based self-sovereign ID, creating an expanding market of 485 million people who want to own and control their digital identities. Whether it is verifying transactions for bitcoin mining or tracking food from farm-to-table, blockchain鈥檚 security horizon depends on the unique situation.

鈥淐ompanies need to factor in the lifespan of their blockchains,鈥� said Andrey Hoursanov, lead for Quantum Security at 麻豆原创. 鈥淚f you鈥檙e using it to trace shipments from raw materials sourcing to delivery, maybe you鈥檙e looking at months, not years. In contrast, bitcoin investments typically take longer. That鈥檚 where you need to seriously consider how to protect the blockchain against quantum attacks likelier to happen further in the future.鈥�

Re-Securing Cryptocurrency

Cryptocurrency is not necessarily just for consumers trading bitcoins. IDC analysts predicted that over 12 countries, mostly emerging economies, will begin issuing a digital currency using blockchain technologies to promote economic stability and encourage electronic commerce by 2023. As some governments begin using cryptocurrencies, Hoursanov said companies will need to begin looking at post-quantum blockchain technology for business-to-business (B2B) transactions such as procurement involving collaboration between buyers and suppliers.

Cross-border payments are another potential security risk. For example, researchers predicted that in just three years, 85 percent of global container shipping will be tracked by blockchain, with half of this volume using blockchain-enabled cross-border payments. They said that 40 percent of tier one financial institutions will use blockchain networks to process point-to-point cross-border payments, bypassing SWIFT and the correspondent or central banking infrastructure by 2024.

Embracing Cryptography Agility

It is impossible to dismiss the security implications around blockchain and quantum computers. High-profile blockchain examples tend to spotlight tracking the authenticity of exceptional transactions like rare artwork or diamonds. The truth is, blockchain could underpin many everyday activities, speeding up ownership recordkeeping, settlement payments, and even loyalty and rewards tracking for customers in many industries.

Smart cities that rely on Internet of Things (IoT) technology have tremendous potential to use blockchain as part of the infrastructure to trade energy, charge electrical vehicles, and manage smart grids. By 2023, Gartner analysts think blockchain will be scalable technically, and will support trusted private transactions with necessary data confidentiality.

Anselme Tueno, researcher and cryptography expert at 麻豆原创 Security Research, is on one of the teams exploring how to make software applications safe in a world with quantum computers.

鈥溌槎乖� is assessing post-quantum algorithms to determine how existing 麻豆原创 applications can be made quantum-safe,鈥� Tueno said. 鈥淩eplacing broken cryptography or integrating a new one takes decades. Moreover, the security of post-quantum algorithms is not fully understood, which is why we have to prepare to replace them if they are broken. This is called cryptographic agility.鈥�

COVID-19 has taught us that we cannot wait for a crisis to reveal the worst that could happen. Forewarned of blockchain鈥檚 eventual vulnerability, companies can be armed against the risks posed by quantum computers and take full advantage of the tremendous benefits of both technologies.

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Also called quantum-resistant or post-quantum, this next generation of cryptography will be designed to withstand a quantum computer-based attack.

鈥淐ryptography is the last line of defense when it comes to protecting data across every organization鈥檚 applications and communications platforms, as well as storage systems,鈥� said Dr. Mathias Kohler, research manager at 麻豆原创 Security Research. 鈥淐ompanies can鈥檛 wait for quantum computers to emerge. They need to estimate the potential impact and develop mitigation strategies early.鈥�

According to experts, quantum computers will be able to calculate the prime factors of an integer much faster than classical computers, posing a fundamental threat to many currently secure software applications on the planet. As scary as that prospect sounds, it is important to remember that quantum computers with sufficient power do not exist yet. That gives organizations a precious window of opportunity to be prepared for cryptography 2.0.

Strong Business Case for Being Prepared

Current state-of-the-art, cloud-based computing may be safe for the moment, but it could become infinitely more vulnerable when more powerful quantum computers take hold. For example, quantum-safe cryptography is central to preventing corporate data espionage around everything from proprietary ingredients and formulas to differentiating processes and valued business relationships.

鈥淓very serious software vendor today needs to investigate how they will address the upcoming quantum computing cryptography challenge,鈥� Kohler said. 鈥淐riminals could collect all the currently encrypted data and wait until quantum computing is available and exploit it then. Organizations have to look ahead and prepare for the next generation of encryption to prevent this.鈥�

Kohler added that quantum computing also challenges the viability of blockchain and bitcoin, which rely on signature-based cryptography. Some experts believe it would render current blockchain technology obsolete.

Exploration for Future-Proof Software

Industry organizations worldwide are working on standardization efforts, experimenting with algorithms for quantum-safe cryptography. 麻豆原创 is actively involved in exploring this next generation of quantum-safe encryption, specifically evaluating standardization models aligned with the company鈥檚 strategy and software application solutions. Teams at the company have some early research results from proof of concept projects comparing the performance of quantum-safe standardization candidates to classical signature encryption.

鈥淲e found that certain candidates were not appropriate for IoT-based devices due to limited computing power and storage that prevented a much longer than usual signature and public/private key from being stored on the device,鈥� said Tobias Dyrba, senior software engineer for the 麻豆原创 ASE Platform. 鈥淲ithout that capability, you cannot encrypt or sign your information, making the algorithm useless. In other experiments, we found performance was comparable to classical encryption models.鈥�

Encryption Secures Customer Trust

When it comes to data security and privacy, the stakes are high in every industry. With the help of quantum computers, criminals could trigger false orders within automated systems. Manufacturers could waste resources trying to manage vast unused inventories or shipments routed to the wrong locations. Robot-intensive factories could face production line disruption when attacked by criminals using quantum computer-directed programming, not to mention the untold damage that fraudulent, sensor-based data could inflict on farms, power plants, and chemical companies.

Foundationally, secure cryptography translates to customer trust. The latest survey of CEOs worldwide found that building digital trust programs was the No. 1 new agenda item for growth in the next five years. Some analysts view trustworthiness as a competitive advantage. researchers predicted that in 2020, digitally trustworthy companies would generate 20 percent more online profit than those who were not.

鈥淥rganizations using quantum-safe cryptography can better protect citizens against voting and tax fraud,鈥� Dyrba said. 鈥淚t will also prevent businesses from accepting and deploying fraudulent software updates from seemingly valid resources, heading off catastrophic system impact.鈥�

While there is no definitive time frame for quantum computers to emerge, they are certain to usher in the next generation of quantum-safe cryptography. 聽And that is a data protection promise that customers expect every organization to keep.

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During that same timeframe, researchers expect 20 percent of organizations will budget for quantum computing projects 鈹� compared to less than one percent today. While quantum computing is not ready for prime time yet, that does not mean business and public sector leaders can shrug off the risks it poses to data security. That is because quantum communication is moving ahead faster than quantum computing.

鈥淨uantum communication uses photons, which means companies can build a quantum communication network faster by using existing optic fibers,鈥� said Laure Le Bars, research project director at 麻豆原创. 鈥淭he quantum Internet could be up and running fairly quickly. This can prevent scenarios where an attacker is stealing data today and holding onto it until quantum computing is available. Consider communications between embassies in different countries or military units worldwide. Maybe this data surfaces a few years later, with the potential to cause considerable, unexpected damage with information that remains relevant. Organizations have a tremendous opportunity now to explore these new data protection protocols.鈥�

Hackathon Takes on Quantum Challenge

People are worried about quantum computing because it promises to upend classical computer security standards. Theoretically, bad actors armed with quantum computers could intercept the sensitive, private data that businesses and consumers share and store every day, whether that data is encrypted or not.

Last fall, academic and industry researchers gathered at a hackathon, sponsored by the , to explore enhancing the library, which implements protocols that underpin Internet security. The goal of the workshop was to test new encryption capabilities to help organizations be better prepared for both quantum communication and quantum computing.

Peter Limacher, quantum expert at 麻豆原创 Security Research, was among the hundreds of participants at the two-day event, which consisted of groups working simultaneously in six European cities. QIA is funded by the European Union as part of the research and innovation program. As a QIA partner, 麻豆原创 employees are researching ways to keep information secure in quantum communication networks.

鈥淥ur task was to hack into the OpenSSL library and augment the standard security protocols with quantum ones,鈥� explained Limacher. 鈥淗aving secure communication or a key exchange through a quantum communications channel is possible in theory. The challenge was integrating that into existing software. People just want to click a button. Using quantum key distribution (QKD), we explored a standardized way to connect qubits and cascade through different software layers to keep information on the quantum Internet secure.鈥�

Quantum Keys May Be Key to Security

According to the laws of quantum mechanics, it would be impossible to eavesdrop undetected on conversations taking place across the quantum Internet. Criminals also would not be able to steal, copy, or otherwise distribute stolen information. The owners of that data would know in real time if security was compromised. This is where quantum communication comes in.

鈥淐ommunication in classical networks can be overheard or intercepted without anyone knowing. That鈥檚 not the case with quantum communication. You鈥檇 know immediately that someone was listening to your conversation or trying to distribute your data,鈥� Limacher said.

Address Quantum Risks on the Horizon Now

Clearly, organizations cannot adopt a wait-and-see attitude as quantum communication emerges. Experts recommend exploring steps now to protect sensitive data before these technologies are widespread. Wherever their data is 鈹� whether in transit, stored in the cloud, or on laptops and other devices 鈹� companies need to protect it with sufficient encryption measures.

鈥淚f you have chunks of data in different data centers, you could introduce QKD to safely exchange encryption keys in close to real time,鈥� said Andrey Hoursanov, lead of quantum security at 麻豆原创. 鈥淭hat way, if someone intercepts information, multiple keys may be needed to intercept additionally, making it much harder to break into. It鈥檚 not 100 percent guaranteed, but it鈥檚 much better than anything else at this point.鈥�

Quantum Moves Ahead on Parallel Tracks

Limacher and Hoursanov kicked off the year at the latest QIA workshop, where members delivered a ranked list of quantum communication protocols for priority development in actual business software applications. They agreed that the top-three protocols of importance to business with the advent of quantum communication would be QKD, quantum digital signature, and quantum money.

鈥淭hese use cases are all related to securing business trust, something that鈥檚 critical as quantum technologies progress,鈥� said Limacher. 鈥淐ompanies conducting numerous transactions with partners on a daily basis need certainty that signed documents and payments haven鈥檛 been modified.鈥�

While quantum hardware may not be fully baked, Limacher said that 麻豆原创 partners are heads-down, using simulator programs to eventually bring these protocols into software within quantum communication networks. In the meantime, his advice for companies was unequivocal.

鈥淥rganizations need to move ahead in parallel with quantum hardware development so software applications are ready when quantum communication networks go live,鈥� he said.

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