Google has signed its first corporate deal to purchase power from multiple small modular reactors (SMRs) to meet the energy needs of its AI systems, marking a key step as AI companies shift toward nuclear power.

“For the past 4-5 years, companies have actively attempted to reduce energy consumption or move to alternative sources,” said Suseel Menon, Practice Director at Everest Group. “Most recently Microsoft wound down an attempt to create underwater data centers. Given the global focus on sustainability, such companies have also explored renewable sources of energy for their operations. But these, although sustainable, can be disrupted due to natural phenomena.”

Read more at: Network World

How can you best put generative AI to work for your business, and what are the real-world applications for this emerging technology  ?

Join Everest Group experts Suseel Menon, Practice Director, and Ashish Sehdev, Vice President, on September 11 for a LinkedIn Live session exploring the benefits and challenges of implementing gen AI. Focusing on tangible settings and results, this discussion will provide clarity as to gen AI’s practical usage across different enterprise areas.

Attendees will understand how to stay ahead using this emerging tech as a lever, and how to harness the full potential of gen AI for their enterprises.

During this in-depth LinkedIn Live, we discussed:

What is the current on-the-ground adoption of gen AI among enterprises?
Which enterprise areas and functions are seeing the highest level of gen AI activity and interest?
What are the key challenges and risks associated with gen AI, and what are the potential solutions to overcome them?
How can organizations become gen AI-ready across talent, culture, and technology?

As the immersive experience landscape evolves from its initial stages to a fully realized state, it promises to transform both consumer and enterprise digital experiences. Despite its early development, enterprises are increasingly recognizing its value and are poised to increase investments in this field. This market is driven by the surging consumer demand for immersive and captivating experiences, presenting numerous opportunities for enterprises across various sectors. The potential applications of immersive technology span diverse areas, such as immersive marketing, enhanced customer experiences, improved employee training, and the facilitation of live virtual events and digital asset trading.

Advances in Virtual Reality (VR), Augmented Reality (AR), and Mixed Reality (MR) technologies are propelling this growth, offering users and enterprises immersive content experiences. The integration of immersive technologies across sectors such as Banking, Financial Services, and Insurance, manufacturing, retail, education, gaming, healthcare, hi-tech, and entertainment is reshaping consumer behaviors and creating new opportunities for engaging experiences. The expanding market is further fueled by rising investment in immersive technology and Web 3.0, indicating a promising future for immersive experience services across industries.

• Enterprise Immersive Experience Services PEAK Matrix® Assessment 2024

  

  What is in this PEAK Matrix® Report

  In this report, we assess 16 immersive experience service providers featured on the Enterprise Immersive Experience Services PEAK Matrix® Assessment 2024 and categorize them as Leaders, Major Contenders, and Aspirants based on their capabilities and offerings.

  Contents: 

  In this report, we:

  • Evaluate 16 leading immersive experience service providers on Everest Group’s PEAK Matrix® evaluation framework
  • Share the characteristics of Leaders, Major Contenders, and Aspirants in the market
  • Assess providers’ key strengths and limitations

  Scope:

  • All industries and geographies
  • The study is based on Everest Group’s annual RFI process for the calendar year 2024, interactions with leading technology providers, client reference checks, and an ongoing analysis of the immersive experience services market

  READ ON

What is the PEAK Matrix®?

The PEAK Matrix® provides an objective, data-driven assessment of service and technology providers based on their overall capability and market impact across different global services markets, classifying them into three categories: Leaders, Major Contenders, and Aspirants.

LEARN MORE ABOUT Top Service Providers

With their exceptional computing prowess, quantum computers have the potential to revolutionize various sectors by expediting complex problem-solving. In this first blog of our two-part series, we delve into quantum computer types, opportunities for businesses and IT service providers, and their impact on modern cryptographic algorithms. Get in touch to discuss further.

What is quantum computing?

Quantum computing is an innovative approach that leverages the principles of quantum mechanics to solve extremely complex problems much faster than classical computers. Unlike classical computers using bits, quantum computers employ qubits, such as photons or atoms, for information encoding. Quantum computing progressed from 2-qubit systems in the 1980s to tens in the 2000s, and by the late 2020s, significant milestones were achieved. Google’s “quantum supremacy” in 2019 with a 53-qubit processor and IBM’s 433-qubit chip, IBM Osprey, set records. In 2023, Atom Computing unveiled an 1180-qubit quantum computer.

Quantum bits exhibit numerous types of quantum phenomena. Let’s explore the following:

• Superposition – Quantum bits, or qubits, can represent both 0 and 1 simultaneously, allowing quantum computers to process information much faster than classical computers
• Entanglement – Qubits become perfectly correlated, even when separated by large distances. This means that changing one qubit instantly affects its entangled partner, enabling quantum computers to determine the value of the other qubit immediately.

These principles allow quantum computers to perform calculations based on the probability of a qubit’s state before measurement, revolutionizing computing capabilities

Despite substantial investments, current systems face scalability and stability issues. Error correction and fault tolerance also remain complex, with each additional qubit increasing the probability of errors and higher sensitivity to environmental noise. These issues highlight the ongoing hurdles in quantum computing’s path to widespread commercialization.

Quantum computer types

Quantum computers have different architectures, determined by the nature of qubits and quantum mechanics phenomena used to manipulate them. The research and innovation put into these architectures deliver solutions to problems that previously could not be solved due to classical computers’ limited computing capabilities.

Below are some of the most typical architectures that enterprises should be familiar with:

• Superconducting: Usually made from superconducting materials, these computers use loops and circuits to produce and alter the qubits. They are the most sophisticated and popular quantum computers and can accurately model and simulate the behavior of molecules, materials, chemical reactions, etc. This feature finds practical utility in fields like drug discovery, materials science, and chemistry, where understanding the quantum behavior of complex systems is essential. They also excel in solving optimization problems, such as route optimization, scheduling, and resource allocation, which have applications in logistics, supply chain management, and financial portfolio optimization
• Trapped ion: These quantum computers use ions trapped and manipulated in an electromagnetic field as qubits. Their long coherence times make them viable for applications requiring high stability and control levels

• Neutral atom: Similar to trapped ion quantum computers, these use neutral atoms suspended in an ultra-high vacuum by arrays of tightly focused laser beams. They also offer long coherence times and high-fidelity operations, making them suitable for implementing complex quantum algorithms such as simulations and solving optimization problems in logistics and cryptography
• Quantum dots: These use semiconductor quantum dots or tiny semiconductor nanocrystals as qubits that can confine electrons or other charge carriers, usually manipulated by electrical, magnetic, or microwave pulses. Theyhave the potential for robust scalability and are typically implemented in quantum communication networks and quantum sensing, among other use cases

• Photonic/optical: Photonic quantum computers leverage photons (or packets of light) to carry and process quantum information. It can play a significant role in quantum communication protocols, enabling secure transmission of information through quantum key distribution (QKD) and quantum teleportation. This ensures the confidentiality and integrity of data, which is essential for various sectors such as finance, defense, and telecommunications

Implications for enterprises and IT service providers  

Quantum computing presents numerous opportunities for enterprises across various industries to revolutionize their operations, drive efficiency, and unlock new possibilities for growth and innovation.

As the field matures, business leaders must prepare to embrace quantum computing in the following five ways:

1. Educate stakeholders: Enterprise leaders must educate themselves, their teams, and stakeholders about quantum computing, its potential applications, and its implications for their industry. They can organize workshops, training sessions, and seminars to increase awareness and understanding of quantum computing concepts and opportunities

2. Identify potential use cases: Leaders must understand their respective fields’ most significant challenges and opportunities and actively search for quantum computing use cases. This can be achieved by either having an in-house team of quantum computing experts or collaborating with academia, research institutions, regulatory bodies, and other industry players to stay abreast of the latest quantum computing technology advances

3. Build a quantum-ready workforce: After identifying relevant quantum computing use cases, leaders must build a dedicated team with expertise in quantum physics, algorithms, hardware, software, and other related fields that can work together to research, design, and implement quantum solutions tailored to their needs. This will enable the enterprise to filter out the hype and focus on areas with real business implications

4. Invest in research and development: By allocating resources to R&D initiatives focused on quantum computing, enterprises can explore potential use cases, develop proof-of-concept projects, and experiment with quantum algorithms and applications relevant to their industry

5. Understand technology needs: Enterprises should determine the frequency of their quantum computing usage to help decide whether to purchase/own a quantum computer or utilize cloud-based quantum services provided by computing companies. It is crucial for enterprises to carefully evaluate and choose quantum-computing partners based on their unique requirements

Service providers can play a crucial role in educating enterprises about the potential applications of quantum computing in their specific industry sectors and help them navigate the challenges and benefits associated with its adoption. Enterprises should understand they don’t necessarily need to own or build a quantum computer. Instead, they should embrace quantum computing as a service that provides multiple benefits, such as scalability, elasticity, reduced costs, and increased accessibility.

Furthermore, it’s crucial to communicate to enterprises that quantum computers will not require continuous availability, as they will coexist alongside classical computers. Providers can collaborate with enterprises on R&D initiatives and develop custom algorithms and applications tailored to their business needs. Additionally, providers have an essential role in helping enterprises navigate quantum computing security concerns.

Quantum computing’s impact on modern cryptographic algorithms

Cryptography has served as the cornerstone of secure communication in the digital age, addressing multiple information security aspects, such as confidentiality, data integrity, authentication, and non-repudiation in the presence of third parties or adversaries. Some of the foundational elements of cryptography are:

Many cryptographic algorithms that enterprises rely on today, such as RSA and ECC, are based on mathematical problems that are computationally difficult for classical computers to solve efficiently.

However, the advent of quantum computing threatens the security of these algorithms. Shor’s algorithm efficiently solves integer prime factorization and discrete logarithm problems, breaking the security of RSA and other asymmetric encryption schemes. Additionally, Grover’s algorithm threatens symmetric cryptographic algorithms and hash functions by offering a quadratic speedup in searching through unsorted databases.

Source: Report on Post-Quantum Cryptography (nist.gov)

Quantum computing – a mixed blessing?

Given their immense computational powers, quantum computers have the potential to revolutionize various fields by solving specific problems much faster than classical computers. Rapid technological advancements in the field make it critical for enterprises to understand the technology, determine potential use cases, and prepare for it.

However, the need for robust quantum-safe or post-quantum cryptographic solutions becomes increasingly evident as quantum computing advances. Read our next blog in this series to learn how to navigate quantum computing security concerns.

To discuss further, please contact Prabhjyot Kaur, Kumar Avijit, and Suseel Menon.

Don’t miss the Global Services Lessons Learned in 2023 and Top Trends to Know for 2024 webinar to learn the successes, challenges, and trends that defined the services industry in 2023 and the opportunities for business leaders in 2024.

Technologies like cloud storage and distributed databases provide some of blockchain’s data integrity and reliability advantages with fewer performance, efficiency, and cost issues.

Suseel Menon, Practice Director at Everest Group, said the trust and security policies and governance layers of cloud services are sufficient for most enterprise applications. In addition, several third-party data storage services can provide better governance and security with far less overhead than a blockchain would entail, he said.

Read more in Tech Target.

WATCH THE WEBINAR ON-DEMAND

Digital transformation consulting has become pivotal as enterprises progress on their digital transformation journeys. Enterprises are finding that bringing digital transformation consultants into the initial transformation phases – before digital landscapes become too complex – can significantly increase value and visibility.

Enterprises are more motivated than ever to make strides in their digital transformation efforts, despite the current macroeconomic environment, creating heightened demand and a booming market for digital transformation consulting.

Watch this webinar as our experts present digital transformation consulting market trends and the current landscape. They offer advice to service providers on ways to improve their offerings as enterprises look for end-to-end services.

What questions does the webinar answer for the participants?

• Why and how are enterprises turning to digital transformation consulting services to uncover more value?
• How are service providers adapting to new market conditions?
• What are the key movements in the digital transformation consulting market?

Who should attend?

• Digital CTO, CIO, CDO, IT strategy heads
• Provider CXO, EVPs, SVPs, VPs, MDs of digital consulting arms, Heads of consulting practices

As enterprises face mounting challenges in adopting complex digital solutions, digital transformation consulting continues to grow. But economic pressures, heightened digital intricacies, and new opportunities in sustainability will impact the industry’s future. To thrive in this rapidly evolving environment, consulting firms must offer tailored solutions that deliver measurable outcomes. For more insights, read this blog.     

Reach out to us directly to learn more.

Digital transformation consulting has gained market prominence in recent years due to the demand for experts who can help organizations effectively embrace technology-driven processes and strategies. With enterprises’ constant demand for digital relevance continuing, the sector is expected to grow 8.5 to 9.5% through 2025.

Consultants have a critical role in helping guide enterprises through the why, what, and how of digital business transformation. The success of digital transformation initiatives hinges largely on identifying the right objective, determining the best strategies, and properly planning digital initiatives, which is where consultants can provide invaluable guidance and expertise.

Service providers also have opportunities to display market-leading thought leadership, influence technology decisions by becoming strategic partners, and build long-term senior stakeholder relationships through consulting. These factors make digital transformation consulting one of the most important segments of the IT industry. Analyzing this industry’s movements helps decode the overall direction of digital change.

Macro-economic conditions are pushing enterprise priorities toward operational benefits

With the increasing economic pressures, cost optimization and productivity improvement have become top-of-mind priorities for enterprises in 2023. Companies are looking to optimize operations, streamline processes, and reduce expenses. In response, consulting firms should rebalance their priorities on operational segments such as supply chain management, production, finance, Human Resources, or sales and marketing.

This shift towards operational benefits will likely impact consulting service delivery. Clients increasingly are seeking outcome-based pricing models that tie consulting fees to specific cost savings or productivity gains. To meet this demand, consultants must demonstrate a deep understanding of their client’s business processes and operations and develop customized solutions that deliver measurable results. Many large consulting houses have also leveraged lower-cost locations to address their delivery cost uptick.

Digital pragmatism is leading enterprises to eye scope and vendor consolidation

Many enterprises are struggling to see the expected returns on their digital investments and are looking to optimize their value. This has led to a surge in demand for consulting services that can help businesses rationalize their digital scope and streamline their vendor portfolios. In 2023, the number of enterprises seeking to critically rebalance or rationalize their service provider portfolio increased by 35%.

To meet this wave of digital pragmatism, professional services firms need to provide end-to-end services that can guide clients throughout the process of IT portfolio rationalization. This includes identifying areas for consolidation, developing an implementation roadmap, and providing ongoing support to ensure successful execution. By taking a more strategic approach to IT investments and vendor selection, enterprises can optimize their value and drive better business outcomes.

This also highlights why digital consulting providers have been attempting to expand their footprint across overlapping opportunities among peer groups. For quite some time, the Big Three consulting firms have targeted downstream revenue with products and solutions for enterprise decision-making. Meanwhile, traditional IT services vendors are leaning on the importance of digital to engage top-brass executives and expand into upstream revenue more strategically. This all comes alongside the Big Four accounting firm’s efforts to exert dominance across end-to-end services capabilities.

This razor focus on value also forces consulting service providers to repair delivery inefficiencies. Everest Group’s Digital Transformation Consulting Services PEAK Matrix® Assessment found that costly engagements with large management consulting houses are not perceived as delivering sufficient value by most stakeholders, and organizations are receptive to working with IT service providers that have a stronger technical focus.

However, IT service providers who excel in technology expertise may fall short in delivering domain or industry expertise. The study showed clients were 10 percent less satisfied with providers’ domain/industry expertise than their technical expertise.

Winning in the “Value Market” will require consulting service providers to deliver well-rounded engagements supported by forward-thinking talent at effective price points that bring technical and domain prowess.

Sustainability will be the next game-changer in consulting

As businesses become more conscious of their environmental impact, many seek consulting services to help them develop and implement sustainable practices. Everest Group research found four out of every 10 Environmental, Social, and Governance (ESG) engagements are focused purely on consulting elements. As this trend is expected to accelerate in the coming years, sustainability will likely become a key driver for growth in the consulting industry.

Consultants are uniquely positioned to help clients navigate the complex sustainability ecosystem, working with diverse partner segments such as rating agencies, global standards organizations, data and reporting vendors, as well as independent software vendors (ISVs) and original equipment manufacturers (OEMs.) To capitalize on this trend, consulting firms need to invest in creating industry and function-focused expertise on sustainability. This includes building teams with deep domain knowledge in areas such as carbon accounting, circular economy, and ESG reporting.

Looking ahead, the consulting industry is expected to continue to undergo significant change, driven by macroeconomic conditions, digital predicaments, and sustainability. Consulting firms today must have a deep understanding of their client’s business processes, operations, and priorities. Providing customized solutions that produce measurable results will be crucial to thrive in this rapidly evolving environment.

To discuss digital transformation consulting and digital strategies, contact Alisha.Mittal@everestgrp.com, Parul.Trivedi@everestgrp.com, and Suseel.Menon@everestgrp.com.  Stay tuned for our perspectives on generative Artificial Intelligence’s impact on the digital transformation consulting market.

Don’t miss our webinar, Welcoming the AI Summer: How Generative AI is Transforming Experiences, to learn how enterprises can leverage Generative AI to unlock business value and about current use cases.

Enterprises are increasingly adopting distributed ledger technology to enhance the privacy, accountability, effectiveness, and confidence of their transactions and engagements with clients, associates, and shareholders. As blockchain technology gains traction, it offers new avenues for ingenuity, expansion, and a competitive edge in a technologically advanced and interconnected landscape.

Enterprise blockchain service providers are distinguishing themselves by leveraging blockchain to foster collaboration, innovation, and transformation among diverse stakeholders. However, maintaining blockchain ecosystems can be complex, as it involves challenges such as poor cyber hygiene, misaligned incentives, governance issues, interoperability barriers, and regulatory uncertainty. This creates opportunities for enterprises and providers to collaborate and co-create solutions that address these obstacles and enhance the overall value of blockchain technology.

What is the PEAK Matrix®?

The PEAK Matrix® provides an objective, data-driven assessment of service and technology providers based on their overall capability and market impact across different global services markets, classifying them into three categories: Leaders, Major Contenders, and Aspirants.

LEARN MORE ABOUT Top Service Providers

Technology Radar 

VIEW THE FULL REPORT

Exponential Technologies

VIEW THE FULL REPORT