Prediction: On-Premises Quantum Deployments Will Increase for High-Security, While Cloud Services Will Expand for Broader Accessibility

Prediction: On-Premises Quantum Deployments Will Increase for High-Security and Custom Use Cases, While Cloud Services Will Expand for Broader Accessibility and Collaboration

• Rationale and Industry Context: As quantum technology advances, we expect to see a clear division between industries that require the security and control of on-premises quantum systems and those that benefit from the accessibility and scalability of cloud-based quantum services. On-premises deployments will cater especially to sectors with stringent data security needs and to organizations investing in quantum for mission-critical applications, while the cloud will continue to democratize access and serve as the primary entry point for businesses exploring quantum technology.
• On-Premises Demand Drivers:
  
   
  • High-Security Environments: Industries like defense, government, and sectors handling sensitive IP, such as pharmaceuticals and financial services, are likely to prioritize on-premises quantum deployments to retain control over data processing and avoid data transfer vulnerabilities.
   
  • Customized Hardware Needs: Organizations may opt for on-premises solutions to enable deeper control over quantum resource allocation and customization, particularly in use cases requiring specific quantum algorithms or configurations not broadly available in cloud platforms.
   
  • Predictable, High-Frequency Usage: Enterprises that anticipate high-frequency quantum processing needs—such as routine optimization for logistics or supply chains—might find on-premises solutions more cost-effective over time compared to cloud usage fees.
 
• Cloud Services Demand Drivers:
  
   
  • Broad Access and Collaboration: For businesses and research institutions new to quantum or with sporadic quantum workloads, cloud services will remain the most viable solution, offering access to cutting-edge quantum technology without significant capital investment.
   
  • Hybrid and Scalable Solutions: Cloud services, which often include hybrid quantum-classical infrastructures, offer scalability and flexible integration with existing classical systems, enabling seamless experimentation with quantum algorithms across various sectors, from finance to machine learning.
   
  • Ecosystem and Toolset Access: Cloud platforms provide access to a broader ecosystem of quantum software tools, simulators, and libraries, making them particularly valuable for collaborative research and development in academia and industry partnerships. This model will likely expand as quantum computing-as-a-service (QaaS) grows, giving companies more options to experiment with algorithm design and cross-platform integration.
 
• Supporting Insight: Recent trends show increasing customer interest in flexible quantum access models, both through cloud and on-premises systems. See here. Companies like QuEra offering on-premises options see demand from organizations needing tailored, high-security quantum systems. Simultaneously, cloud providers continue to expand access, integrating quantum with existing cloud services and software tools.
• Challenges and Hurdles: While on-premises systems provide control and security, they demand significant investment in infrastructure and talent for maintenance and operation. Conversely, cloud quantum services must address concerns about data privacy and transfer latency, particularly for security-sensitive clients.

By 2025, this dual deployment model is likely to be a hallmark of the industry, with on-premises deployments seen as essential for security-sensitive and high-frequency use cases, while cloud-based quantum services will continue expanding access, fostering R&D, and supporting collaborative innovation.

To read the full list of our 2025 predictions, visit here.