Microsoft Plans to Buy Israel’s Adallom

It’s unclear what Microsoft may have planned for Adallom and whether the company will allow the Israel-based startup to continue to operate independently or build its technology into its own cloud services, like Azure and Office 365.

Microsoft has confirmed its biggest Israeli investment ever with the acquisition of cloud security company Adallom for 0 million (£205 million).

The Adallom cyber security company was founded in 2012 by CEO Adam Rappaport, Ami Luttwak, and Roy Reznik – all graduates of elite IDF technology units.

Adallom, which develops cloud security platforms, is predicted to develop into the middle for Microsoft’s cyber security enterprise in Israel, the newspaper stated. However, we have separately reached out to Microsoft regarding this, and would update the story once we receive a response.

Adallom concentrates on securing data stored in the cloud, and seems to focus on enterprise solutions ahead of consumer-facing products. Back in December 2013, Adallom gained popularity after it exposed the loophole in the security server of Microsoft 365. First observed in April of that year, the vulnerability was described by Adallom chief software architect Noam Liran as “a bona fide ideal crime; a crime where the victim doesn’t know that he’s been hit; a crime where there’s no proof of any foul play anywhere; a crime where protecting yourself against it without being familiar with its modus operandi is next to impossible”.

Last autumn Microsoft paid a reported $200m for the Israeli cybersecurity company Aorato, which specialises in the use of machine learning to monitor employee behaviour on corporate networks. Microsoft later released a patch that resolved the issue. In May, Microsoft acquired stylus technology maker N-trig for a reported $200 million.