Telefónica Tech adopts IBM quantum-safe security

MADRID - Telefónica Tech, the technological arm of Spanish telecom giant Telefónica, has partnered with IBM (NYSE:IBM) to enhance its cybersecurity services with quantum-safe technology. IBM, a prominent player in IT Services with a market capitalization of $211.4 billion, brings significant technological expertise to this partnership. This move aims to address the emerging threats posed by the advent of quantum computing, which could potentially break traditional encryption methods. According to InvestingPro data, IBM maintains strong financial performance with annual revenue of $62.6 billion.

The collaboration will see the deployment of IBM’s quantum-safe technology at Telefónica Tech’s Madrid headquarters, with the goal of creating secure solutions for businesses and public administrations in anticipation of future quantum computers capable of cracking current cryptographic systems. IBM’s stock has shown impressive momentum, trading near its 52-week high of $239.35, reflecting investor confidence in its strategic initiatives.

IBM’s suite of quantum-safe tools includes IBM Guardium Quantum (NASDAQ:QMCO) Safe, part of the IBM Guardium Data Security Center, which provides organizations with the ability to manage cryptography and address vulnerabilities. This is complemented by IBM Quantum Safe Explorer and IBM Quantum Safe Remediator, which assist in identifying cryptographic weaknesses and establishing quantum-safe proxies.

These solutions aim to protect critical data from the threat of decryption by future quantum computers by implementing new quantum-safe cryptography standards defined by the U.S. National Institute of Standards and Technology (NIST). IBM has contributed to the development of two of the three algorithms published as post-quantum cryptography standards.

The agreement also involves the creation of a joint use case office to focus on areas such as communications encryption, secure algorithm adaptation, and the protection of critical environments. IBM’s infrastructure, including an IBM LinuxONE system secured with quantum-safe cryptography, has already been set up at Telefónica’s headquarters to foster business development and a secure environment against post-quantum threats.

This partnership positions Telefónica Tech to assist organizations in transitioning to new cryptographic standards and protocols, ensuring resilience against the cybersecurity risks of quantum computing. The integration of IBM’s quantum-safe technologies into Telefónica Tech’s portfolio is engineered to enhance proactive risk assessments and help organizations identify and address vulnerabilities in their infrastructures.

This news is based on a press release statement, confirming Telefónica Tech’s commitment to digital transformation and IBM’s expertise in hybrid cloud, artificial intelligence, and quantum computing. InvestingPro analysis indicates IBM maintains a "GOOD" overall Financial Health score, underlining its strong position in the technology sector. For deeper insights into IBM’s financial metrics, valuation, and growth potential, investors can access the comprehensive Pro Research Report, available exclusively on InvestingPro, covering this and 1,400+ other top US stocks.

In other recent news, IBM’s earnings and revenue results have garnered attention, with JPMorgan raising its stock price target to $244 from $233. IBM’s software segment demonstrated substantial growth, contributing to 45% of the company’s total quarterly revenue of $62.58 billion. The company’s free cash flow (FCF) for the fourth quarter also surpassed expectations, reaching $12.7 billion. Analysts from Evercore ISI, RBC Capital Markets, and Stifel have maintained positive ratings on IBM shares, highlighting the company’s strong performance and future prospects.

In terms of mergers and acquisitions, IBM has announced its intention to acquire Applications Software (ETR:SOWGn) Technology LLC, an Oracle (NYSE:ORCL) consultancy firm, to enhance its Oracle solutions in the public sector. This acquisition is expected to close in the first quarter of 2025, pending customary closing conditions and regulatory approvals. IBM has also resolved its legal disputes with GlobalFoundries (NASDAQ:GFS), potentially paving the way for future collaborative ventures.

In other company news, IBM has partnered with Walmart (NYSE:WMT) GoLocal to streamline last-mile delivery for retailers, integrating Walmart GoLocal into IBM’s Sterling Order Management system. IBM has also been part of a global study conducted by the IBM Institute for Business Value and Palo Alto Networks (NASDAQ:PANW), revealing organizations’ struggle with security complexity. These developments indicate IBM’s ongoing efforts to improve its operations and market position.

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