Security Advisor

Microsoft To Buy Cloud Security Firm Adallom for $320 Million

The move will help to strengthen Office 365's security capabilities.

Microsoft is reportedly working on a deal to buy security company Adallom, which specializes in cloud security, for $320 million.

If the deal goes through, this would make the fourth Israeli tech firm (and third security company) that Microsoft has bought in the last year, and the most expensive of the four. While Microsoft has not confirmed the possible acquisition, The Wall Street Journal reports that two anonymous individuals close to the deal have confirmed that the buyout is all but done.

Adallom was founded in 2012 in Tel Aviv and specializes in monitoring and securing data in custom apps, SaaS and IaaS solutions. The company provides monitoring tools that allows employees to spot and flag a possible security breach in real time, while at the same time alerting users of anomalies in data behavior. Adallom's security suite can work in conjunction with popular cloud services including Salesforce.com, Google Apps, Box, Office 365 and Amazon Web Services. Many of the large names already using the service include Netflix, LinkedIn, HP and Pixar, to name a few.

Since first arriving, the company has already secured $49.5 million in funding, including $4.5 million in Series-A funding by Sequoia Capitol.  

Just earlier in the week the company had announced a partnership with Softbank Commerce and Services, one of Japan's largest communications tech distributers, to bring Adallom's cloud security platform to enterprises in the region.

Adallom has had a past history with Microsoft. In 2013, the security firm disclosed to Microsoft of a critical vulnerability that could allow Office 365 tokens to be hijacked. The acquisition could be a way to strengthen Microsoft's cloud service and provide some confidence to a customer base that may be hesitant to move data to the cloud due to security concerns.

Neither company has yet to comment on the deal.

About the Author

Chris Paoli is the site producer for Redmondmag.com and MCPmag.com.

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