January 31, 2025
Telefonica, S.A.
TEF recently inked an agreement with
International Business Machines Corporation
IBM to engineer robust security solutions that safeguard businesses and public institutions from the risks of a post-quantum world.
The rise of quantum computing promises unprecedented computational power, enabling more advanced calculations. However, it presents a significant challenge: safeguarding data security in a world where conventional encryption methods may become obsolete. Although cryptographically relevant quantum computers do not yet exist, sensitive data is already at risk of being collected by cybercriminals for potential decryption in the future.
IBM has created quantum-safe enterprise software to tackle future security risks. IBM Guardium Quantum Safe, part of IBM Guardium Data Security Center, aids organizations in managing cryptography, fixing vulnerabilities and strengthening security. It also includes IBM Guardium Key Lifecycle Manager for secure, scalable encryption key management. IBM Quantum Safe Explorer and IBM Quantum Safe Remediator help identify cryptographic vulnerabilities, test quantum-safe algorithms and set up quantum-safe proxies.
These solutions aim to safeguard organizations' critical data from quantum decryption threats by using new quantum-safe cryptography standards set by NIST. IBM co-developed two of the three published post-quantum cryptography standards, enhancing data security for the quantum era.
Per the collaboration, TEF will integrate IBM’s quantum-safe technology into its cybersecurity services. By leveraging IBM’s expertise in quantum-safe cryptography, Telefónica Tech aims to help businesses and public organizations transition to secure encryption standards that can withstand quantum computing threats. The agreement includes establishing a joint use case office to focus on communications encryption, adapting to new secure algorithms and protecting critical environments.
IBM's infrastructure has been installed at Telefonica's headquarters in Distrito Telefonica, Madrid, to support business growth. Designed for security and resilience, it helps protect against post-quantum threats. This includes an IBM LinuxONE system with end-to-end encryption using quantum-safe cryptography, IBM Storage technology and advanced tools for securing master and operational keys.
By combining Telefonica’s cybersecurity capabilities with IBM’s expertise in quantum-safe cryptography, businesses and public organizations can proactively protect their critical data and stay ahead of potential threats.
Telefonica SA price-consensus-chart | Telefonica SA Quote
Telefonica’s innovative initiatives to reshape the cybersecurity landscape augur well for the company’s prospects. In November 2024, TEF partnered with the Greater Miami Chamber of Commerce to elevate the latter’s cybersecurity framework. Its comprehensive suite of cybersecurity services aims to empower the Chamber with unparalleled protection while enabling it to focus on its core mission of driving business growth and development in Miami.
In December 2024, Telefonica and CrowdStrike joined forces to offer SMBs in Spain advanced cybersecurity through the "Tu Empresa Segura" service. The partnership provides top-level protection with CrowdStrike Falcon's endpoint security and Managed Detection and Response services to prevent cyber breaches.
The company aims to optimize value creation by prioritizing investment in its core operations. Its operating model is likely to accelerate the digitization of the Group’s operations.
TEF currently carries a Zacks Rank #3 (Hold). Shares of the company have declined 0.2% in the past year compared with the industry’s fall of 16.3%.
Some better-ranked stocks from the broader technology space are
Ubiquiti Inc.
UI and
Qualcomm Incorporated
QCOM. QCOM & UI carry a Zacks Rank #2 (Buy). You can see
the complete list of today’s Zacks #1(Strong Buy) Rank stocks here
.
Qualcomm is well-positioned to meet its long-term revenue targets driven by solid 5G traction, greater visibility and a diversified revenue stream. It is increasingly focusing on the seamless transition from a wireless communications firm for the mobile industry to a connected processor company for the intelligent edge.
Ubiquiti’s effective management of its strong global network of more than 100 distributors and master resellers improved its visibility for future demand and inventory management techniques. In the last reported quarter, Ubiquiti delivered an earnings surprise of 20.9%. Its highly flexible global business model enables it to adapt to the changing market dynamics to overcome challenges while maximizing growth.
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