Microsoft buys Cloud Security Adallom Around $320M to bolster cloud software security

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Microsoft has announced the acquisition of cloud security firm Adallom in a move to bolster the identity management capabilities of its cloud-based software.

Takeshi Numoto, corporate vice president of cloud and enterprise marketing at Microsoft, revealed the acquisition on the Microsoft blog, describing it as an indication of the company commitment to boosting its security offerings.

“Adallom expands on Microsoft’s existing identity assets, and delivers a cloud access security broker to give customers visibility and control over application access as well as their critical company data stored across cloud services,” he wrote.

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“Adallom works with popular cloud applications including Salesforce, Box, Dropbox, ServiceNow, Ariba and, of course, Office 365.
“As a cloud-delivered, security-as-a-service [product], Adallom will complement existing offerings that Microsoft makes available today as part of Office 365 and the Enterprise Mobility Suite, including our recent Microsoft Advanced Threat Analytics release.”

Numoto explained that Microsoft’s interest in cloud security stems from the increasing amounts of advanced cyber attacks making headlines in the technology and consumer worlds.
Managing the identity of people using software is a major challenge for IT teams trying to protect their applications and data, he added.

Few details have been revealed as to how Microsoft will integrate Adallom into the corporate fold, but Numoto indicated that Microsoft will not shed any Adallom staff.
“Adallom, co-founded in 2012 by Assaf Rappaport, Ami Luttwak and Roy Reznik, has assembled a world-class team with a dedicated focus on making it easier to enhance data security in the cloud,” he said.

“The team will continue to evolve, build technology, sell [products]and work with customers as we complete the integration into Microsoft.”
Rappaport expressed enthusiasm for the acquisition of his startup and outlined how it will affect Microsoft.
“This acquisition represents a major investment in cloud and software-as-a-service application security for the Microsoft team,” he said.
Microsoft and Adallom had not revealed financial details of the acquisition at the time of writing, despite V3’s request for more information.
This acquisition is Microsoft’s second in the past seven days after picking up VoloMetrix to boost data analytics in Office 365.

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Asmaa Mubita is a Kenyan journalist of international repute with over fifteen years of experience in broadcast journalism. Asmaa Mubita began his journalism career at the Kenyan state broadcaster (KBC) and later worked at the KTN owned by the Standard Group and Citizen Television, the flagship brand of Royal Media Services. These exploits together with his reporting experience with the Voice of America, CNN and BBC have been rewarded with local and global recognition.