Quantum computing is no longer just a futuristic dream—it’s knocking on the door of commercial reality. But here’s where it gets controversial: how do businesses harness this groundbreaking technology without breaking the bank? Enter Quantum-as-a-Service (QaaS), a model that promises to make quantum computing accessible to companies without the need for massive upfront investments in hardware. Think of it as the SaaS revolution, but with a quantum twist. However, while the delivery model might seem familiar, the underlying technology is anything but. Quantum computing is still in its infancy, grappling with unique hardware and infrastructure challenges that SaaS never had to face. For a deeper dive into these challenges, check out this insightful blog post: Quantum Computing: Overview of Drafting Considerations for Quantum-as-a-Service Agreements.
And this is the part most people miss: QaaS agreements aren’t just SaaS contracts with a new label. They require careful consideration of quantum-specific issues. Here’s what you need to know:
Service Level Agreements (SLAs): While customers might expect SaaS-like uptime (think 99.9% availability), quantum systems aren’t there yet. This mismatch could lead to contentious negotiations, with providers pushing for shared risk in addressing the unique infrastructural challenges of quantum computing.
Support Obligations: Unlike SaaS, QaaS support isn’t just about software—it’s also about hardware. Providers will need to offer a broader range of support services, which could complicate agreements.
Pricing: Customers want predictable, decreasing prices as the technology matures, but providers need flexibility to account for the high costs and uncertainties of maintaining quantum hardware. It’s a classic tug-of-war between stability and adaptability.
Cybersecurity in Hybrid Systems: Here’s a contentious point: even though QaaS uses quantum hardware, classical systems are often still involved for data storage and processing. This hybrid approach raises concerns about long-term data security, especially with current encryption standards like RSA or ECC. Customers may push for quantum-safe cryptography, but providers might resist due to evolving standards and potential performance issues. Is it fair to demand quantum-safe measures when the technology isn’t fully mature?
Export Controls: Both parties must navigate complex export regulations, which apply not only to the technology used in QaaS but also to any innovations developed through it. Even domestic access by foreign nationals can trigger export controls. Providers may seek assurances from customers, while customers might demand geographic restrictions on data storage or compliance with U.S. export laws. Who should bear the burden of compliance in this rapidly evolving landscape?
These considerations highlight why QaaS agreements demand a nuanced approach. Given the technical complexity and rapid evolution of quantum computing, contracts must be both practical and flexible. But here’s a thought-provoking question: Can traditional contracting frameworks keep pace with quantum innovation? Some experts suggest vested contracting—a collaborative approach where parties align on shared goals—as a potential solution. By embedding flexibility and anticipating changes, QaaS agreements can remain effective as the technology matures.
Another critical issue is compliance. With legal and regulatory frameworks still catching up, ensuring adherence to standards like cybersecurity and export controls will require ongoing effort and investment. Who should foot the bill for these evolving costs? Cost-sharing provisions or governance committees could help, but they require a level of collaboration that not all parties may be willing to embrace.
As quantum computing continues to evolve, so too must the agreements that govern its use. Whether you’re a provider or a customer, staying ahead of these challenges will be key to unlocking the full potential of QaaS. What’s your take? Are QaaS agreements the future of quantum computing, or do they introduce more headaches than they solve? Let us know in the comments!
For further discussion or legal support on your quantum computing projects, feel free to reach out. Special thanks to Lisa Ann Johnson for her contributions to the export controls section.
