Exploring the Future: AI, Quantum Computing, Sovereign Cloud, and Enterprise Security

ConstellationTV episode 122 dives deep into pressing trends in AI, quantum computing, sovereign cloud, and enterprise security. With input from Constellation analysts Holger Mueller, Liz Miller, and Chirag Mehta, alongside IBM's Mark Hughes and Constellation Research CEO R "Ray Wang", the episode unpacks the transformative technologies and challenges businesses face as we approach 2026. Here's a breakdown of the key discussions, predictions, and insights to help tech and business leaders maximize the value of this insightful episode.

AI and Quantum Computing: What's Next for Technology?

The first major topic revolves around artificial intelligence and quantum computing, with Holger Mueller shedding light on NVIDIA CEO Jensen Huang’s controversial remarks about frontier AI models. Huang dismissed open-source models by suggesting they would catch up within six months—a claim with limited backing, as Mueller humorously pointed out.

From there, Mueller dives deeper into developments in quantum computing. He highlighted a key announcement from Microsoft, which is building a cloud infrastructure complete with a quantum operating system: 

“Microsoft is having an event as we speak in Copenhagen... they're putting a full cloud infrastructure in front of that, coming up with a quantum OS.”

Additionally, IBM’s and D-Wave’s innovations were discussed in detail. D-Wave, for instance, revealed a strategic acquisition of quantum circuits, which Mueller believes will make the organization a long-term viable vendor: “Can play no either way, which will make D-Wave a more long-term viable vendor.” The takeaway? Quantum computing is on the rise, set to redefine industry capabilities as businesses ramp up efforts in this domain. 

“Strong start of the year for Quantum.”

Sovereign Cloud: Europe's Game-Changing Investment

Sovereign cloud initiatives emerged as another essential theme. Liz Miller emphasized the steady movement by European organizations toward compliance and self-reliance: “We're seeing a whole lot of actual movement in requirements for Sovereign Cloud.” Mueller elaborated on AWS and IBM’s substantial investments.

• AWS’s Regional Sovereignty in Germany: AWS is creating a full-blown cloud infrastructure in Brandenburg, Germany, akin to its US East region but operated exclusively by EU passport holders—a significant step toward sovereignty: “It’s a massive, almost 7,000,000,000 investment... [and] run by only EU passport holders.”
• IBM’s Sovereign Cloud Core: On IBM’s front, the company has introduced a system that allows enterprise customers to run locally from their data centers—a lighter but equally valuable step toward sovereignty: “The ability for enterprises to run locally in their own data center... makes it automatically sovereign.”

Mueller concluded with an emphatic prediction: “2026 is also gearing up to be the year of sovereign cloud.”

Enterprise AI and Security Concerns

Mark Hughes (VP at IBM) and Ray Wang delve into enterprise challenges regarding AI security systems. Hughes emphasized AI's dual role in security: enhancing detection and automating workflows while maintaining the integrity of AI deployments.

• “AI is making us quicker than adversaries.”
• “We need a security wrap around AI models and agents to ensure functionality.”

He warned that fragmented approaches among enterprises often lead to inefficiencies: 

“Organizations are using multiple approaches, multiple vendors, and are now unable to scale effectively.”

Post-QM Cryptography: Preparing for Quantum Challenges

Hughes also shared sobering projections about quantum threats to existing cryptography systems, predicting that by 2029, quantum capabilities will pose significant risks. Businesses need to start preparing now by identifying vulnerable systems and adopting quantum-resistant cryptography. He urged leaders: 

“Get busy discovering what cryptography you have and looking at how you can remediate.”

Amplifying Decision Velocity and Tackling Tech Debt

This episode underscored the importance of decision velocity—a concept that encapsulates the need for faster decision-making and quicker execution. Wang noted: “The decision velocity has to match the speed of execution. You can't have digital speed and decision delays. It’s time to ramp up now.”

Speakers also highlighted how AI removes excuses for slow decision-making as legacy systems hold businesses back. As Mueller points out, 

“The technical debt that you haven’t addressed is going to hold your AI speed back. The sins of the past will catch up to you in 2026.”

Anticipation for Upcoming Events: Cisco AI Summit

The episode closes with key insights on upcoming industry events, notably the Cisco AI Summit. Wang expressed excitement about its ecosystem approach, which features major names such as Jensen Huang, Tarek Amin, Anthropic, and Anne Neuberger. Chirag Mehta (VP & Principal Analyst) highlighted the growing importance of real-world AI use cases in driving adoption: 

“Applications drive adoption. It’s the workflows that show the value.”

Final Thoughts: Get Ready for 2026

The speakers stress urgency across every topic discussed, from sovereign cloud advancements to exploiting quantum computing and securing AI deployments. Crucially, as highlighted by Mueller: 

“2026 will be the year of sovereign cloud, and of reckoning for technical debt and excuses that have held businesses back.”

Whether you're a business leader navigating enterprise AI adoption, a technology enthusiast exploring quantum computing, or a practitioner grappling with cybersecurity challenges, this podcast offers invaluable predictions and strategies. Take note and act now—the future is approaching faster than ever.