Microsoft confirms it has acquired Israeli cloud security platform Adallom

Satya Nadella,   chief executive officer at Microsoft / Getty


Microsoft announced its acquisition of the Israeli cyber security startup Adallom, for an undisclosed sum.

Confirmation comes two months after rumors first emerged of a potential $320 million deal.

Adallom’s software is used for monitoring cloud-based services such as Dropbox, Google Apps, Amazon Web Services (AWS), Box, and Salesforce. When it establishes a typical usage pattern, it tells admins of any anomalies that could indicate security issues.

Adallom, received attention in December 2013 when it exposed vulnerability in Office365’s security.

Adallom was founded in 2012, by Adam Rappaport, Ami Luttwak, and Roy Reznik, and has offices in Palo Alto, California, and Tel Aviv. It has raised $50 million in funding to date, including $30 million from HP – the firm’s first investment in an Israeli startup.

Microsoft said Adallom’s technology will complement some of its own existing tools, including Advanced Threat Analytics, which recently launched as a direct result of the Aorato acquisition.

Microsoft CVP Takeshi Numoto said, “This acquisition is the latest example of Microsoft’s commitment to delivering innovative identity and security capabilities to our customers, across both on-premises and multiple clouds.

“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.”


Assaf Rappaport,   CEO Adallom


The Israeli firm’s CEO Rappaport wrote on the company’s website: “Adallom started 2.5 years ago when Ami, Roy and I saw an opportunity to solve a challenge helping our customers that were looking for a way to keep their data safe in cloud applications.

“We’ve come a long way since those early days. Now, today I’m excited to announce another validation of Adallom, our vision, our team and our technology we are joining the Microsoft family.”

Last year, Microsoft has aquired other Israeli companies: Aorato and Equivio for about $200 million each.



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