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Month: June 2025

Technology

IBM and SAP Launch IBM Cloud as New Hyperscaler Option for SAP Cloud ERP on Power Virtual Server

Observenow Desk June 30, 2025

IBM and SAP have jointly introduced a new hyperscaler option within the RISE with SAP framework, enabling businesses to migrate SAP S/4HANA Cloud workloads swiftly and securely using IBM Power Virtual Server. This marks a significant expansion of deployment flexibility for enterprises leveraging mission-critical SAP ERP systems.

The service positions IBM Power Virtual Server—the cloud version of IBM’s renowned on-prem Power infrastructure, as the first certified hyperscaler for SAP Cloud ERP. Able to transition legacy SAP deployments to the cloud within 90 days, this option caters to existing IBM Power customers who wish to preserve architectural consistency while moving to public cloud.

A recent large-scale internal implementation underscored the platform’s potential: IBM migrated its entire quote-to-cash and record-to-report processes—serving around 150,000 users across 175 countries—in under 18 months. The result: a 30% reduction in infrastructure and operational costs, thanks to server rationalization and enhanced automation.

Beyond operational speed, the offering highlights several key advantages: High reliability and security: IBM Power servers consistently rank top in availability among SAP-certified hardware, with embedded zero-trust security and minimal reported vulnerabilities. Strong service-level guarantees: IBM and SAP back the offering with a 99.99% uptime commitment, reinforcing trust for mission-critical workloads. Cost parity and incentives: Customers can access pricing on par with Intel-based systems. IBM is also offering discounts of up to 45% for committed use and a trade-in program for on-prem Power servers. Tailored migration support: IBM has unveiled an investment program that supports technical assessments, partner-led migrations, and deployment of non-SAP workloads during transition.

The partnership also deepens IBM and SAP’s long-standing collaboration. Many clients can now migrate to RISE with SAP on Power Virtual Server using IBM Consulting or SAP-certified systems integrators—within a consolidated ecosystem that extends to AI-driven processes through SAP Business AI.

Industry analysts have praised the announcement. According to TechAisle founder Anurag Agrawal, the hyperscaler strategy “promises a compelling option for businesses looking to migrate their mission-critical ERP workloads securely, quickly and with minimal disruption”. Other technical experts echoed this sentiment, noting that guaranteed uptime and consistent architecture across environments offer rare efficiency gains .

As organizations race to meet impending end-of-support deadlines for legacy SAP systems, this new deployment route offers a pragmatic path. With Power Virtual Server now embedded in the RISE with SAP portfolio, existing IBM Power customers can modernize with minimal disruption and strong cost control—a formula designed to accelerate cloud ERP adoption.

RISE with SAP on IBM Power Virtual Server is slated for general availability in the second quarter of 2025. Enterprises can begin planning migrations by engaging IBM or SAP partners to leverage the newly launched investment program and transformation tools. This milestone positions IBM as both a trusted infrastructure provider and strategic cloud partner with SAP, delivering enterprises an integrated, agile, and secure route to modernize high-stakes ERP environments.

Tags: IBMIBM CloudIBM Power Virtual ServerSAP

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Technology

OpenAI Taps Google Cloud’s TPUs to Power ChatGPT and Slash Costs

Observenow Desk

OpenAI has begun renting Google Cloud’s Tensor Processing Units to power its flagship ChatGPT product and other AI services—marking its first major use of non‑Nvidia chips and a strategic shift away from its historic reliance on Microsoft Azure and Nvidia GPUs. OpenAI is now utilizing Google’s TPUs for model serving, a move aimed primarily at reducing the high costs associated with inference computation—the phase where trained AI models respond to user input. While Google is not offering its top-tier TPUs, this marks a milestone in OpenAI’s diversification strategy.

This arrangement reflects a growing recognition in the AI industry that supply-chain resilience and cost efficiency matter. By expanding beyond its traditional Nvidia‑Azure setup, OpenAI aims to introduce competition into its computing stack. For Google, landing OpenAI as a customer—alongside other AI players like Apple and Anthropic, validates its move to commercialize internal TPU hardware.

Nvidia currently dominates AI chip supply, with an estimated 90% market share in high-performance AI hardware. Google’s push to externalize TPUs signals an intent to challenge that dominance and offer a compelling alternative for compute-hungry AI services. OpenAI expects Google TPUs to help lower the costs of inference workloads, which have ballooned with ChatGPT’s user growth. Reports estimate OpenAI’s chip spending could rise from $4 billion in the prior year to nearly $14 billion by 2025. Renting TPUs also gives OpenAI a safety net as it pursues its own custom chip development efforts.

Despite the competitive backdrop—OpenAI’s ChatGPT rivals Google’s Gemini—the deal underscores a pragmatic turn in AI infrastructure provisioning. Even fierce rivals are forging infrastructure deals to meet skyrocketing compute demands. In essence, OpenAI’s move to Google TPUs puts pressure on Nvidia, boosts Google Cloud’s AI credentials, and highlights a strategic rethink among AI leaders: diversifying and optimizing chip supply chains is becoming essential in scaling cutting-edge services.

Tags: ChatGPTGoogle CloudOpenAI

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HR

Salesforce Joins Tech Layoff Wave as CEO Says AI Now Performs 30–50% of Work

Observenow Desk

Salesforce CEO Marc Benioff recently confirmed that artificial intelligence now carries out 30% to 50% of internal workloads at the company, spanning roles in software engineering, customer support, analytics, marketing, and branding. Speaking on Bloomberg’s The Circuit, Benioff hailed the shift as a “digital labor revolution,” emphasizing how AI agents—powered by Salesforce’s own Agentforce platform—free employees to focus on higher-value tasks.

The CEO highlighted that Agentforce now handles customer interactions with 93% accuracy, even in high-profile accounts such as Disney. Salesforce is targeting one billion active AI agents by the year’s end, with more than 5,000 clients already leveraging the technology. However, this level of automation has come with a human cost: Salesforce has already cut over 1,000 jobs in 2025, even as it simultaneously hires new teams to support and promote its AI offerings. Benioff framed this as a strategic redeployment, noting that AI adoption helped reduce hiring needs while boosting efficiency.

Benioff’s remarks align with similar statements from other tech leaders—Microsoft’s Satya Nadella and Alphabet’s Sundar Pichai have both noted AI-generated code now makes up roughly 30% of their software development output. Bloomberg reported that the trend is prompting widespread workforce reshaping across Silicon Valley. Despite growing productivity, critics and employees have expressed concern over job displacement risks . Workforce metrics underscore the trend: over 63,000 tech sector layoffs in 2025, with major firms including Google, Intel, Meta, and Microsoft undertaking significant reductions—often citing AI-driven efficiency gains.

Salesforce’s internal metrics suggest strong support for its AI-driven direction. Benioff described the transition as inevitable: “All of us have to get our head around this idea that AI can do things that before, we were doing, and we can move on to do higher‑value work”. While acknowledging that no system is perfect, he underscored that reaching peak accuracy is less important than progress toward efficient, sustainable operations .

As Salesforce races toward a future powered by AI agents, the industry is watching closely. Benioff predicts the economic impact of AI implementation could skyrocket to between $3 trillion and $12 trillion in global productivity—a testament to the scope of this transformation. Whether businesses and workers can adapt remains the central question in a landscape where “digital employees” are increasingly integral.

Tags: Marc BenioffSalesforce

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Cybersecurity

Meta’s Quiet Policy Update Could Open Doors to Private Photo Usage

Observenow Desk

Meta has sparked caution among Facebook and Instagram users by subtly expanding the scope of its terms and conditions. While no overt changes were highlighted, the update grants Meta broad rights that users may inadvertently accept—rights that extend far beyond current expectations.

Historically, Meta’s platforms have relied on publicly shared content for AI model training. However, recent shifts indicate a growing appetite for private, unpublished photos housed in users’ personal camera rolls. Though Meta denies current use of these private images for AI training, it has not ruled out future access, creating a legal avenue that warrants user scrutiny. This highlights why users must not treat terms and conditions as perfunctory checkboxes: they may unknowingly sign away control over deeply personal content.

Meta’s introduction of optional “cloud processing”—enabling automatic upload of unshared photos for features like AI-generated collages—illustrates this new paradigm. Users may opt in, but the terms give Meta ongoing data usage rights, including retention and metadata analysis, with ambiguous constraints about future AI applications.

Experts emphasize the broader importance of reading terms, noting that corporations frequently include clauses covering content ownership, data collection, shared usage rights, liability limitations, and legal governance. Even established platforms like Facebook, Instagram, and WhatsApp may have terms that seem benign yet include provisions triggered by new features, making a simple click potentially binding .

Academia and consumer advocates alike have warned against blindly assenting. Studies reveal that even simplified privacy policies can conceal complex data-sharing permissions that users often misunderstand. Some terms grant companies sweeping rights over intellectual property, limit users’ legal recourse, or allow content to be used in marketing without compensation .

The stakes grow even higher as social media apps evolve. Meta’s recent content moderation overhaul—ending third-party fact-checking, loosening hate speech rules, and shifting enforcement to community submissions—accentuates how evolving terms may justify future platform policy shifts. What seemed acceptable last year may not apply today, but previous agreement to blanket terms often makes such changes legally permissible.

For most users, the solution is simple: pause before tapping “I agree.” Review key clauses, particularly those involving data usage, privacy, intellectual property, dispute resolution, and account termination. Changes to camera roll access should prompt fresh consent, not default approvals hidden behind glossy features.

Ultimately, these developments signal an important shift: users may be conceding more rights than they realize. With Meta granting itself extended latitude through AI tools and cloud features, transparency and intention in agreement are crucial. Mindful reading of terms isn’t just legal due diligence—it’s the only way to truly understand what personal data and content we may be surrendering in return for convenience.

Protecting privacy starts with awareness. Users are now empowered to renegotiate the trade-off—partaking in innovation without sacrificing control. The recent changes are a compelling reminder: always read before agreeing.

Tags: Meta

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Governance

PSU Bank Stocks Surge as Government Pushes for Subsidiary Listings to Unlock Value

Observenow Desk

Public sector bank stocks surged sharply on June 30, driven by a fresh directive from the Finance Ministry encouraging institutions like SBI and Indian Union Bank to list subsidiaries and joint ventures to unlock value and boost transparency. The move propelled the Nifty PSU Bank index higher, with SBI, Indian Bank, Indian Overseas Bank, Bank of Maharashtra, Union Bank, and others rising between 3% and 4% on the National Stock Exchange.

Market reaction was immediate. Shares of SBI and Union Bank led the momentum, each gaining up to 4%, while mid-tier lenders such as Canara and Central Bank rose more modestly. The broader PSU Bank index outpaced the Nifty 50 and even the Nifty Financial Services subset, which saw flat or slightly negative returns . Investors welcomed the news as a long-term value catalyst, signaling a shift toward strategic restructuring and hidden asset monetization.

Analysts at YES Securities highlighted that public sector banks are well-positioned to benefit from the initiative. Their robust margins—buoyed by reserves tied to MCLR-linked lending—and the government’s push for capital recycling through IPOs create favourable conditions for sustained profitability. Historically, PSU banks have enjoyed upside during periods of clarity in capital and asset reallocation, with expanding liquidity and low non-performing assets adding to tailwinds.

The policy backdrop is significant. The Finance Ministry has identified around 15 PSBs with viable subsidiaries ripe for stock market listings among them SBI, which is reportedly exploring options for unlisted arms to enter public markets. Capital infusion via IPOs can strengthen balance sheets, reduce state ownership, and improve corporate governance standards—moves that tend to resonate well with equity investors over time.

This announcement builds on a broader narrative of public bank resurgence. Strong Q4 earnings, stable asset quality, and improved fee and treasury incomes have all reinforced confidence in PSU profitability even as credit growth remains cautious . Broader trends—including India’s easing liquidity landscape, declining bond yields, and early-stage rate cuts by the Reserve Bank—make fixed-income portfolios within PSU banks more attractive, helping sustain margins.

Despite positive indicators, observers note the gains may be short-lived if policy implementation falters. Listing complex subsidiaries involves regulatory hurdles, valuation clarity, and execution risk. Moreover, with systemic credit growth moderate and competition from private banks on the rise, PSU lenders will need to deploy IPO proceeds wisely to maintain momentum.

Looking ahead, market participants expect PSU banking stocks to remain in focus, especially as definitive plans emerge for specific listings. With HDFC Institutional Equities forecasting around 15% CAGR in core earnings for PSU banks between FY25–27—driven by disciplined lending, digitalisation, and asset-quality upkeep—the sector appears well primed to recover under renewed market impetus.

Tags: PSU Bank

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Digital Native

ixigo Leverages AI to Capture India’s $23 billion Online Travel Market

Observenow Desk

ixigo, India’s leading online travel platform, is doubling down on artificial intelligence and strategic cricket associations to outpace rivals in the nation’s $23 billion travel industry. As competition from players like MakeMyTrip and Goibibo intensifies, ixigo is blending cutting-edge tech with high-impact marketing to connect with a new wave of Indian consumers.

Central to ixigo’s strategy is an array of AI-powered tools. Its trip‑planning assistant, PLAN, launched in July 2023 atop OpenAI models, has generated over 280,000 itineraries and engaged more than 1.5 million users. Integrated into ixigo’s native apps and as a ChatGPT plugin, PLAN offers context-aware, personalized itineraries complete with real-time factors like weather, cultural interests, and travel timing. The platform’s multilingual voice assistant, Tara, handles nearly 87% of customer queries across English and Hindi, even detecting user emotions to deliver empathetic responses—enhancing both speed and conversational fidelity.

ixigo’s AI investment extends beyond planning. The “Assured” dynamic insurance product—backed by AI—automates cancellations across flights, buses, and trains, doubling convenience for users. During travel disruptions, ixigo’s algorithms modulate pricing and availability proactively, offering optimized re-booking routes for impacted users.

AI has propelled operational success: ixigo achieved an all-time high FY25 profit and revenue, with flight and bus transactions surging by 92%, and overall GTV climbing 65% in Q4—driven largely by Tier II and III city users.

To broaden its appeal, ixigo has embraced cricket, India’s most popular sport. Partnerships with IPL teams and campaigns featuring star cricketer Rohit Sharma—who appears as a rapping “Ticket Man”—have boosted brand visibility across linear and digital media. These tie-ups, featuring emotionally resonant and culturally attuned messaging, are designed to engage deepened national interest during cricket seasons.

ixigo’s brand positioning has become increasingly sector-specific. It operates segmented services—ixigo Flights, ixigo Trains, ConfirmTkt, and AbhiBus—each tailored with focused communications and incentives. This vertical-brand strategy ensures relevance across user demographics from small-town travelers to cosmopolitan planners.

Industry data underscores the rationale: India’s OTA market is expected to grow at nearly 8% CAGR to $34 billion by 2030. App adoption surged sharply post-pandemic—92% for travel and 84% for airlines—fueling a 26% spike in OTA downloads during 2023.

Rajnish Kumar, co‑CEO, describes ixigo’s mission as “building travel tech for the next billion Indians,” making travel planning intuitive, inclusive, and affordable. By combining machine-learned trip planners, voice automation, dynamic pricing, and emotionally attuned branding, ixigo aims to convert growing travel demand into retained loyalty and scalable growth.

In summary, ixigo is forging a new travel industry paradigm—anchored in AI and amplified by cricket’s cultural resonance. As India emerges as one of the world’s largest digital travel markets, ixigo’s dual-engine growth strategy of tech innovation and mass engagement positions it to not just compete, but lead.

Tags: Ixigo

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Trending

India Firm on Agriculture and Dairy “Red Lines” as US Trade Talks Hit Snags Ahead of July 9 Deadline

Observenow Desk

India and the United States are locked in intense negotiations over a bilateral trade agreement intended to ease tensions ahead of the July 9 deadline for reciprocal tariffs. Indian Finance Minister Nirmala Sitharaman has issued a clear warning that agriculture and dairy are non-negotiable sectors—describing them as “very big red lines”—as Bengaluru-based negotiators prepare for an interim deal that could shape future cooperation.

The urgency stems from Washington’s decision in April to suspend a proposed 26 percent tariff on Indian exports for 90 days. With that pause expiring on July 9, both nations are under pressure to secure an agreement that avoids economic disruption. Indian negotiators have signaled willingness to move forward on industrial goods, information technology, pharmaceuticals, and non‐sensitive agricultural imports like nuts and cranberries, but remain adamant on protecting domestic farmers and dairy producers.

U.S. officials are pushing for broader access to the Indian market—citing interest in wheat, corn, dairy, ethanol, automobiles, medical devices, and genetically modified crops—as part of a package deal aimed at closing the bilateral trade imbalance. However, India has consistently refused to yield in sectors with strong domestic political implications, particularly dairy—a stance rooted in both economic protectionism and cultural considerations, including religious sentiments surrounding cattle .

This standoff threatens the timeline. While early-stage negotiations showed promise, disagreements over market access for autos, steel, and farm goods have stalled progress, casting doubt on whether a Phase 1 deal can be finalized by July 9. Government insiders indicate that India is prioritizing a balanced outcome over a rushed agreement—preferring a “win‐win” framework even if that means delaying any interim understanding .

Despite the standoff, both nations are maintaining momentum. India’s top trade officials are reported to be in Washington this week holding talks aimed at an early-harvest package—likely focused on non-sensitive goods and tariff reductions—while laying groundwork for a larger, comprehensive accord expected by autumn .

On the political front, External Affairs Minister S. Jaishankar expressed cautious optimism that an agreement or interim pact could be achieved before July 9—highlighting India’s proactive efforts, including measured tariff reductions, to demonstrate flexibility. But President Trump’s aggressive negotiating posture—emphasizing reciprocal demand leverage and public scrutiny—has led to growing resistance in New Delhi, where the deal is risking being perceived as coercive rather than cooperative .

Ultimately, reaching a balanced tariff accord will test New Delhi’s ability to protect its agricultural base while engaging in strategic economic diplomacy. Analysts anticipate a phased outcome: first easing tariffs on non‑sensitive products by July, then addressing agriculture, dairy, GM goods, and medical devices in a more inclusive package aimed for autumn completion—possibly alongside ratification by the U.S. Congress .

With the clock ticking, the coming days represent a critical window. Resolving the tension between fast-track gains and long-term stability—especially on red-line sectors—will determine whether India secures a viable interim deal or risks incurring retaliatory tariffs. The stakes are high: both nations aim to pivot towards a $500 billion bilateral trade relationship by 2030, but only if foundational disagreements can be resolved without undermining domestic priorities.

Tags: Nirmala SitharamanRed Lines

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Digital Native

Torrent Pharma to Acquire Controlling Stake in JB Chemicals in ₹19,500 Crore Deal

Observenow Desk

Torrent Pharmaceuticals, the Ahmedabad-based drugmaker, has announced plans to acquire a 46.39% controlling stake in Mumbai-headquartered JB Chemicals and Pharmaceuticals from private equity firm KKR. The deal is valued at ₹19,500 crore, marking the second-largest transaction in India’s pharmaceutical sector and positioning Torrent as the country’s second-most valuable pharma company.

Following the transaction, Torrent will launch an open offer to acquire an additional 26% stake from public shareholders—a regulatory requirement under Indian takeover rules. Once the open offer concludes, Torrent expects to merge JB Pharma into its operations, combining both entities’ portfolios.

The transaction establishes a fully diluted valuation for JB Pharma of ₹25,689 crore, reflecting its strong brand equity and growth potential. Shares of JB Pharma dropped over 6% on the BSE following the announcement, with concerns raised over the open offer being priced roughly 9% below the prevailing market rate.

According to sources, the deal is expected to close within 15 to 18 months, making it the most substantial acquisition in the sector since Sun Pharma’s 2015 takeover of Ranbaxy. Torrent Pharmaceuticals will leverage both equity and debt financing, including raising approximately $1.6 billion through banks, following patterns set in prior acquisition talks.

The acquisition represents a transformational step for Torrent, which has built its business through a combination of branded generics and strategic mergers and acquisitions. JB Pharma brings a strong presence in critical therapeutic segments—cardiology, gastroenterology, anti-infectives, and women’s health—anchored by popular brands such as Nicardia, Rantac, Cilacar, and Metrogyl.

JB Pharma recorded robust performance in FY25, posting ₹3,918 crore in revenue—12% higher than the prior year—and expanding its profitability, despite broad market challenges. Analysts view the acquisition as strategically complementary to Torrent’s existing portfolio, offering enhanced scale, geographic reach, and entry into contract development and manufacturing organization (CDMO) services .

Torrent’s Managing Director designate, Aman Mehta, has previously outlined an ambition to break into India’s top three pharma companies by 2027 through focused inorganic growth. A successful integration of JB Pharma could bring Torrent’s revenues to the ₹15,000–16,000 crore range, positioning it just behind market leader Sun Pharma.

Industry observers suggest the deal will accelerate consolidation in India’s branded generics market, reinforcing Torrent’s capability to leverage JB Pharma’s marketing networks and manufacturing synergies. The shared product portfolios offer scope for cross-selling and operational efficiencies.

The transaction represents another milestone in KKR’s exit from JB Pharma. The private equity firm originally acquired a 54% stake in 2020 for ₹3,100 crore and gradually sold part of its holdings earlier in 2025. With Torrent stepping in as the buyer, KKR’s exit underscores the attractiveness of Indian mid-cap pharma assets to both strategic and financial investors.

Moving forward, regulatory approval, the outcome of the open offer, and integration execution will shape the long-term success of the deal. However, Torrent’s decisive move signals its ambition to challenge India’s pharma hierarchy and emerge as a leading force across domestic and export markets.

Tags: JB PharmaRanbaxyTorrent Pharma

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Trending

Indian Startups Garner Over $350 Million in Funding in June

Observenow Desk

Between June 23 and 28, India’s startup ecosystem clinched over $350 million in investment, underscoring both the depth and dynamism of its technology-driven sectors. The buoyant week was highlighted by substantial rounds across diverse industries, from defense-tech and internet services to enterprise AI and e‑commerce—reflecting strong investor appetite amid a broader funding slowdown.

The marquee deal was secured by RaphemPhibr, a Noida-based drone manufacturing firm. The startup raised $100 million in a round led by Silicon Valley’s General Catalyst, elevating its valuation to nearly $900 million. This represents the largest private capital infusion in India’s emerging defense-drone segment to date.

Another highlight came from Wiom, a Delhi-based internet-services aggregator, which secured $40 million in growth capital. The round was backed by leading global investors, including Bertelsmann India Investments, Accel, and Prosus, reinforcing confidence in the platform’s expansion strategy. ShopOS, an ecommerce AI startup, received a $20 million investment led by 3STATE Ventures, backed by Flipkart co-founder Binny Bansal, marking it as a notable mid-stage success in the week’s funding landscape .

Earlier in the week, startups such as Fantail, a Surat-based B2B fabric company, Skippi, an ice‑pop D2C brand, Prozo, and Fabheads, a Chennai-based deep-tech composites venture, received significant funding—ranging from ₹13–₹20 crore to $10 million each—demonstrating widespread investor interest across both consumer and industrial segments.

In parallel, several high-profile corporate capital events unfolded. Pine Labs, the fintech and payments solutions provider, filed for an IPO targeting ₹2,600 crore. The groundwork was laid that same week with investor confidence buoyed by a strong anchor book, which had recently amassed $392 million from marquee funds including BlackRock, LIC, and sovereign wealth vehicles.

Overall funding for the month of June reached approximately $738 million, spanning four weeks—though this reflects a sharp 60% year-on-year decline compared to the $1.8 billion raised across 207 rounds in June 2024. Despite the slowdown, the concentration of funding in high-impact sectors like defense-tech and enterprise software highlights a clear investor strategy toward specialized, scalable innovations.

This surge was further emphasized by the broader context of India being ranked the third-largest recipient of global tech startup investment in H1 2025, securing $4.8 billion overall. The momentum, however, has moderated—with seed funding down 44%, early-stage drops of 16%, and late-stage funding declining by 27% year-over-year.

The week’s varied capital flows suggest that investor focus has shifted from a broad-based funding spree to concentrated bets on sector leaders. High-ticket investments in drone and tech infrastructure startups like RaphemPhibr and Wiom, alongside growth rounds for regionally scaled ventures such as ShopOS, indicate a trend toward selective but meaningful infusion.

With Pine Labs preparing for a significant public market debut, India’s financing ecosystem is demonstrating maturity. Clear, differentiated value propositions—whether in defense innovation, AI-enabled e-commerce, or enterprise platforms—continue to draw investor confidence, positioning the country’s startups for sustainable growth even amid macroeconomic caution.

As India’s startup funding evolves, recent capital trends underscore a shift: from volume-driven IPO stockpiles to curated support for deep-tech and high-capacity players. Despite the contraction in overall deal numbers, the strategic nature of these investments suggests a robust foundation for innovation-led expansion in the months ahead.

Tags: GarnerIndian Startups

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Cybersecurity

F5 Unveils Post‑Quantum Cryptography Tools to Shield Apps from Quantum Threats

Observenow Desk June 27, 2025

F5 Inc. has launched an integrated suite of post‑quantum cryptography (PQC) capabilities within its Application Delivery and Security Platform, designed to protect applications, APIs, and sensitive data against the looming menace of quantum-enabled cyber attacks. The announcement highlights F5’s push to make quantum‑safe encryption accessible and seamless for modern enterprises operating across hybrid, multicloud, and on‑premises environments.

With the rapid progress of quantum computing—exemplified by reports of breakthroughs capable of undermining RSA encryption—F5 stresses that organizations must prepare now to prevent future data breaches through “harvest now, decrypt later” tactics. The new PQC offering embeds algorithms standardised by the National Institute of Standards and Technology, ensuring both server-side and client-side encryption remain resilient without sacrificing performance.

Kunal Anand, F5’s Chief Innovation Officer, underscored the importance of proactive defense: “Post‑quantum threats aren’t a distant problem; they’re a forcing function to modernize security now. Our platform makes PQC adoption practical, so enterprises can future‑proof their apps, APIs and trust models without slowing down”.

F5’s platform approach ensures that quantum‑resistant protection is delivered end‑to‑end—securely handling encrypted traffic across diverse environments while preserving application delivery performance. Users benefit from unified visibility into encrypted flows and comprehensive control over policy and compliance—all supported by high availability and automation features.

The company also addresses broader industry challenges: transitioning cryptographic systems can induce outages, degrade user experience, or lead to compliance lapses if done hastily. By combining classical and quantum‑safe encryption in hybrid deployments, F5 enables careful, phased adoption that mitigates risk and ensures continuity.

Industry analysts echo the urgency. Gartner has estimated that by 2029, classical asymmetric encryption will be vulnerable to quantum decryption—making NIST-standardized PQC readiness imperative. As part of its solution, F5 offers interoperability with legacy systems, simplifying migrations and easing compliance with evolving regulations .

The PQC features are immediately available as extensions to F5’s existing platform, complementing tools like application firewalls, API protection, telemetry, and AI-based threat detection. Customers can thus begin transitioning to quantum-safe encryption across critical infrastructure without wholesale system overhauls.

In doing so, F5 positions itself at the forefront of quantum-resistant security innovation, anticipating the needs of enterprises navigating both current and emerging threats. By embedding PQC into application delivery infrastructure today, organizations can better safeguard business continuity, regulatory compliance, and customer trust in a quantum-enabled future.

Tags: F5

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