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Quantum computing is gearing up for prime time. Honeywell International and the U.K.s Cambridge Quantum Computing are merging their fledgling quantum-computing efforts into a company that combines Honeywells hardware expertise with privately held Cambridges software and algorithms. Its as if the two were forming the Apple of quantum computingnot because its about to be a consumer product, but because Apple marries hardware, operating systems, and software.

Honeywell believes quantum computing, which exploits quantum effects to outperform traditional computers in some calculations, can be a trillion-dollar-a-year industry someday. We are at a phase where people are looking to hear more about practical quantum use cases, and investors want to know if this is investible, says Daniel Newman, founder of Futurum, a research and advisory firm focused on digital innovation and market-disrupting technologies.

This deal will speed investor education. [Wed] be disappointed if we were only at a billion [dollars in revenue] in a few years, says Ilyas Khan, Cambridges founder and CEO. Hell be CEO of the new company, which he says will decide by year end whether to go public. He also hopes by then to have products, initially in web security (with unhackable passwords), followed by chemicals and drug development.

The new enterprise will have about 350 employees, including 200 scientists, 120 of them Ph.Ds. Honeywell, which will own 54%, is putting in some $300 million in cash. Honeywell stock didnt react to the news. Quantum computing is still too small to move the needle on a $160 billion conglomeratefor now.

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Write to Al Root at allen.root@dowjones.com

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Honeywell Does a Quantum Computing Deal. Is This the New Age of Computing? - Barron's