IBM made a discovery that allows computations to be performed on encrypted data without decrypting it first. That could open up the possibility for some very interesting services. It would be easier to calculate, for example, aggregate statistics on sensitive data (such as financial or medical) regarding an individual, without requiring certain sensitive information (such as account numbers, specific balances, DNA sequences) to be leaked. There are almost certainly applications for this technology that have not even been dreamed of yet. The biggest downside so far is that the CPU performance hit is enormous.
http://www-03.ibm.com/press/us/en/pressrelease/27840.wss
http://www.forbes.com/2009/06/24/encryption-rsa-privacy-technology-breakthroughs-ibm.html
http://www.eweek.com/c/a/Security/IBM-Uncovers-Encryption-Scheme-That-Could-Improve-Cloud-Security-Spam-Filtering-135413/
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