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IBM and Security First Corp to co-develop security capability for cloud computing

|Includes: International Business Machines Corporation (IBM)

IBM (NYSE: IBM) said Tuesday it has signed a joint development agreement with Security First Corp to collaborate on cryptographic security services to further enable the shift to cloud computing.

Under the agreement, for which financial terms were not disclosed, both companies will develop a virtual machine cryptographic security capability, using Security First's  SecureParser splitting technology, for use in IBM's cloud computing offering, used by companies to store and access information over the internet, eliminating the need for costly servers.

The SecureParsersoftware was designed to address key data assurance needs voiced by both governmental and commercial IT groups, IBM said.

"We see a clear path ahead now for cloud computing to move forward and reach its full potential, and we are excited and pleased to be a key part of this significant security solution with IBM," said Security First CEO Mark O'Hare.

IBM is leading the path in developing ways to secure and store the exploding amount of web traffic.

The company also announced today a new chip-making technology that can be used to create advanced semiconductors, able to keep pace with the ever-increasing amount of data driven by greater consumer appetite for smart phones and other web-connected devices.

IBM said the technology will dramatically increase the memory capacity and processing speeds of chips used in fiber-optic and wireless networks, and in routers and switches.

Using the new chips, routers will be able to stream a film in less than one minute and cell phone networks can move one year's worth of text messages in less than ten seconds.

IBM was up more than 0.5% on Tuesday, trading at $147.25 as of 10:42am EST.

Disclosure: No position