Withdrawing from Contracted Services Despite Profitability: A New Horizon for the Quantum Computing Business

Withdrawing from Contracted Services Despite Profitability: A New Horizon for the Quantum Computing Business

Given the numerous inquiries we’ve received, I wanted to provide this update as follow-up.

We at Blueqat have made the strategic decision to withdraw from the quantum computing contract service business. However, this does not mean that contract-based business is unprofitable. Our decision is based on a realistic assessment of scale and growth speed. With the appropriate scale, contract services can still generate profits. In this article, I will explain the background behind our decision to re-evaluate the contract business and share our vision for the future.

1. Challenges in Contract Services: What’s Hindering Growth?

The quantum computing contract business was a promising area for us. However, there were several constraints on its growth. One key issue is that contract-based businesses heavily rely on human resources, and thus there are limits to scaling up. As the number of projects increases, more staff must be hired to support them. This makes it difficult to achieve rapid growth and market expansion, which is not well-suited for quickly generating returns on investment.

2. Contract Services at an Appropriate Scale Can Continue

However, this does not mean that “contract services are unprofitable.” In fact, many of our clients are making steady profits through quantum computing and machine learning via contract-based services. These companies manage the scale of their contract services efficiently, allocating resources effectively and achieving success. We also believe that in quantum computing application development, if the scale is managed correctly, contract services can still continue. By focusing on niche markets or highly specialized fields without aiming for large-scale expansion, it is certainly possible for the contract business to remain profitable.

3. Blueqat’s New Growth Model

On the other hand, we are now shifting towards a new business model that allows for more efficient growth and better meets the expectations of investors and the market. Since the quantum computing market is still in its early stages, we believe that other business models are more suited for large-scale growth. Blueqat is focusing on providing products and platforms that leverage quantum computing, aiming for scalable growth.

4. Learning from Successful Examples in Contract Services

The quantum computing market is expected to continue growing, and there are many successful examples within contract-based services. We have learned much from these success stories and are re-evaluating the benefits of a contract-based business. If we can maintain the right scale and level of specialization while delivering high-value services to clients, the contract business can be sustainable and profitable.

Conclusion: Blueqat’s Outlook for the Future

Our decision to withdraw from the contract business is a strategic one, based on challenges in scaling and concerns over return on investment. However, this does not mean that contract services have lost their value entirely. We believe that continuing at the right scale and with the appropriate approach is still feasible. Moving forward, we will focus on shifting to a scalable growth model, dedicating ourselves to offering services that fully leverage our technology and expertise.

Through this article, we hope to provide clarity on the reasons behind our decision to withdraw from the quantum computing contract business and outline our future strategy. As the market and technology evolve, we at Blueqat will continue striving for new growth.