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Orange Business Services, a subsidiary of France Telecom , has enhanced its Security as a Service (SAAS) offering by teaming up with information security company SafeNet to provide its Secure Authentication solution over the cloud.

Orange Business service will augment its Authentication Service with SafeNet’s Authentication Service to provide its enterprise customers with an additional layer of security, while accessing vital corporate information.

This cloud-based solution will offer a software infrastructure, capable of supporting all enterprises and will help eliminate the cost and complexities of owning and managing their own equipment and employees. In addition to cost savings, the solution also addresses the security concern of the enterprise clients.

The cloud-based services business has been growing for quite some time, as it significantly reduces the operational cost of enterprises by providing secure and affordable data management solutions, thereby enhancing business productivity.

France Telecom reported weak financial results for the fourth quarter of 2012. The company earned €10.92 billion ($14.16 billion), marking a year-over-year drop of 3.2%. Enterprise segment also has a weak quarter, where revenue slid by 2.7% to €1.79 billion ($2.32 billion).

France Telecom is enhancing its service portfolio to tap the recent rise in demand among enterprise customers to use cloud-based service. We believe this will allow France Telecom to offset its falling wireless business and strengthen its enterprise segment revenue. Currently, France Telecom carries a Zacks Rank #2 (Buy).

Other Stocks to Consider

Other stocks to consider in the European telecom industry are Telecom Italia (TI - Snapshot Report), Telefonica SA and Liberty Global (LBTYA - Analyst Report). All these stocks currently carry a Zacks Rank #2 (Buy).

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