An overview of current status and prospects of the development of quantum computer hardware based on inorganic crystals doped with rare-earth ions is presented. Major parts of the experimental work in this area has been done in two places, Canberra, Australia and Lund, Sweden, and the present description follows more closely the Lund work. Techniques will be described that include optimal filtering of the initially inhomogeneously broadened profile down to well separated and narrow ensembles, as well as the use of advanced pulse-shaping in order to achieve robust arbitrary single-qubit operations with fidelities above 90%, as characterized by quantum state tomography. It is expected that full scalability of these systems will require the ability to determine the state of single rare-earth ions. It has been proposed that this can be done using special readout ions doped into the crystal and an update is given on the work to find and characterize such ions. Finally, a few aspects on the possibilities for remote entanglement of ions in separate rare-earth-ion-doped crystals are considered.