Microsoft acquires security software company Adallom, reportedly for $250 million

The acquisition by Microsoft will provide additional funding to Adallom for the continual development of its Security as a Service platform, and adds to the $49 million it has already gained from private investors in the last two years.

Microsoft has purchased cloud-security vendor Adallom for an undisclosed amount. The three-year-old startup’s technology will be used in other Microsoft offerings as well, such as its Enterprise Mobility Suite and Advanced Threat Analytics.

Adallom is the third Israeli company to be acquired in the past year by Microsoft, which purchased text-analysis startup Equivio in January and enterprise security firm Aorato Ltd.in November 2014. “After all, their IT departments don’t have direct control over these services, which are delivered from the service provider’s data center”. With the acquisition of Adallom, Microsoft is addressing the security part of that puzzle.

Adallom, co-founded in 2012 by Assaf Rappaport, Ami Luttwak and Roy Reznik, will continue to evolve, build technology, sell solutions and work with customers as the integration is completed, Microsoft said.

In improvement to really Office 365, Adallom’s application may also be utilized to defend cloud functions such as Salesforce, Box, Dropbox, ServiceNow and Ariba. The company’s solution works by establishing a normal usage pattern that is predefined, so in case of anomalies, it can send security alerts to the employer.

The deal with Microsoft was originally reported in July but not confirmed at that time.

Microsoft has bought out cloud security firm Adallom in a deal carrying an estimated value of $300m. Adallom has raised more than $49 million from investors since starting up.

Adallom promises that SaaS applications can be as secure as on-site applications. The company’s platform can also help with regulatory and compliance mandates for data in the cloud, according to the company’s website.