D-Wave is the leader in the development and delivery of quantum computing systems, software and services and is the world’s first commercial supplier of quantum computers and the only company developing both annealing quantum computers and gate-model quantum computers. Pulse 2.0 interviewed D-Wave president and CEO Alan Baratz to learn more.
Alan Baratz’s Background
Baratz has worked in technology, leading companies to successfully bring new, transformative products to market for more than 25 years. And Baratz said:
“Before joining D-Wave, I was the first president of JavaSoft at Sun Microsystems, where I oversaw the growth and adoption of the Java platform from its infancy to a robust platform supporting mission-critical applications in nearly 80 percent of Fortune 1000 companies. I’ve held executive-level positions at large technology companies, including Avaya, Cisco, and IBM, and also served as CEO of three different companies, leading all of them to successful acquisitions. In addition, I served as managing director of Warburg Pincus LLC, a leading global private equity firm.”
“I would say, without a doubt, that leading D-Wave and fueling the commercialization of quantum computing has been the most exciting and rewarding endeavor of my career.”
Formation Of D-Wave
How did the idea for D-Wave come together? Baratz shared:
“D-Wave is a trailblazer in quantum computing. The company was founded back in 1999 and has since become the world’s first commercial supplier of quantum computing solutions. When our founders set out to build a quantum computer more than 20 years ago, science and engineering had not progressed to a point where you could start to build a gate model system. So, D-Wave started by building a quantum annealing computer, which can be programmed at a much higher level to solve real-world optimization problems. While going the annealing route may have been considered a conservative strategy at the time, it has proven to be the most beneficial decision our company has made. We are the only company that can effectively deliver value in the optimization portion of the market. We are proud to be the first quantum company that has achieved commercial status, equipping customers with the power of quantum to solve real-world business problems today.”
Favorite Memory
What has been Baratz’s favorite memory working for D-Wave so far? Baratz reflected:
“When you’re on the forefront of harnessing mind-bending technology to solve incredibly complex problems for businesses and society, every day is full of remarkable moments. We were the first to install a quantum system in a commercial environment outside of our lab, first to demonstrate peer-reviewed quantum mechanical effects with a quantum annealing computer, first to deliver a real-time quantum cloud service, first to enable complex optimization applications on quantum computers, first to deliver a 5,000+ qubit system, first to deliver quantum hybrid solvers, and first to show a three-million-times speed-up over classical computers while performing a simulation of a model of a physical system. All of these milestones are only possible given the incredible team at D-Wave – a group of futurists, scientists, engineers, and market makers, obsessed with solving customer problems. I’m inspired every day.”
Challenges Faced
Has the current macroeconomic climate affected the company? Baratz acknowledged:
“Organizations across nearly every industry are looking for solutions to navigate adversity as they continue to face obstacles driven by today’s uncertain economic climate. As a result, conversations around optimization efforts have moved from the IT department to the board room as a key tactic for making businesses more productive, more competitive, and ultimately more profitable. From lowering costs to driving revenue growth to expediting decision-making, the benefits of optimizing a business are abundant. With the ability to examine a much greater set of possible solutions, quantum can uncover results that are simply unattainable for classical computers alone. And it’s not just for the most technically savvy organizations. Quantum is being used to accelerate problem-solving and decision-making for a wide range of common organizational tasks, including supply chain management, manufacturing efficiency, employee scheduling, and fraud detection, just to name a few. Amidst the increasingly challenging economic environment, we are seeing more and more companies turn to quantum to accelerate problem-solving. As time goes on, it will become a necessity.”
Core Products
What are D-Wave’s core products and features? Baratz explained:
“The D-Wave 5,000+ qubit Advantage computer is the first quantum computer designed for business, helping today’s enterprises solve complex business problems. With our Leap quantum cloud service, customers have immediate, real-time access to Advantage and our quantum hybrid solvers, all with enterprise-class performance and scalability. We also offer a suite of open-source Python tools for developers and a professional services program to help businesses get started on their quantum journey with ease. As the implementation of quantum solutions becomes more mainstream, D-Wave is committed to providing expert training and mentorship to ensure customers are equipped with the tools to build, and most effectively utilize, quantum-powered applications that will positively impact their organization.”
Significant Milestones
What have been some of D-Wave’s most significant milestones? Baratz pointed out:
“D-Wave is the first company to commercialize quantum computing over 10 years ago. Since then, we have continued to drive innovation forward by delivering five generations of quantum computing systems, launching the Leap quantum cloud service, and providing a suite of hybrid commercial solvers that makes it easier than ever for businesses to derive value with quantum. Our solutions are commercial-ready, enterprise-grade and in the market today.”
“In addition to our product innovation, I’m incredibly proud of all the hard work our team has done to advance quantum science. Most recently, we published research in Nature that demonstrates how quantum annealing can solve 3D spin glass optimization problems 80,000 times faster than classical computers. This is a significant feat, as it proves our technology’s superior performance for large-scale optimization problems, which is directly applicable to real-world challenges businesses are being faced with today. As we look to the future, the possibilities for quantum truly are endless, and I’m proud to be part of a team that is delivering solutions that will make a greater, positive impact on the world.”
Customer Success Stories
Upon asking Baratz about customer success stories, he commented:
“Organizations are increasingly turning to quantum solutions to address optimization challenges, which are becoming increasingly difficult given vast amounts of data that, in turn, create critical pain points. We’ve worked with our customers on building hundreds of quantum applications that solve real-world problems. For example, our customer, SavantX, worked with the Port of Los Angeles to improve the handling of shipborne cargo using D-Wave’s quantum technology, resulting in a 60% increase in crane deliveries and a 12% reduction in turnaround time for the trucks picking up the cargo containers. Separately, the Pattison Food Group grocery chain implemented quantum solutions to optimize operations, reducing a 25-hour task down to just two minutes of calculations per week. Mastercard is exploring quantum-hybrid solutions to optimize offer allocations for its customer loyalty and rewards program to increase cardholder satisfaction while maximizing campaign ROIs. The list of companies using our quantum technology is growing by the day. The time is now for business leaders to prioritize a quantum strategy. If they’re not already thinking about quantum, we believe they’re behind.”
Funding/Revenue
After asking Baratz about funding and revenue sources, he replied:
“D-Wave is a publicly traded company and generates revenue through several streams including the development of quantum applications, quantum training, and quantum-computing-as-a-service (QcaaS).”
Total Addressable Market
What total addressable market (TAM) size is D-Wave pursuing? Baratz assessed:
“Quantum’s potential to address computationally complex problems is capturing the attention of business and government leaders around the world, and the market potential is significant. Quantum computing will create a near-term total addressable market (TAM) of $2 billion to $5 billion in the next 3-5 years, according to the Boston Consulting Group.”
Differentiation From The Competition
What differentiates D-Wave from its competition? Baratz affirmed:
“D-Wave is the only independent full-stack quantum provider, offering quantum annealing systems, along with our cloud service, software tools, and professional services offerings. We own one of the largest quantum computer intellectual property portfolios in the industry, including more than 220 issued U.S. patents and have published more than 100 peer-reviewed papers in leading scientific journals. Our leadership is clear.”
“With our quantum annealing technology, the potential of quantum is no longer a hypothetical as with other quantum modalities; instead, it’s a reality. D-Wave’s technology is commercial-grade and available today, with forward-thinking companies using it to achieve operational excellence.”
Future Company Goals
What are some of D-Wave’s future company goals? Baratz concluded:
“We remain laser focused on helping customers tackle their toughest computational challenges by harnessing the power of quantum. In support of that mission, we will continue to push quantum innovation forward, furthering development on our sixth-generation system, the Advantage2™ system, which is expected to have 7,000+ qubits and 20-way connectivity, enabling it to solve even bigger problems. In addition, we’ll continue our pioneering work in quantum science, as our recent findings contribute to a growing body of research that may lead us to the first practical quantum supremacy result.”
