Stephen Brashear, Getty Images
Microsoft CEO Satya Nadella.

Microsoft Purchases Israeli Cloud Startup

Sept. 9, 2015
The company continues its cloud expansion by snatching up cybersecurity startup Adallom for an estimated $250 million.

As Microsoft expands its offerings for the enterprise, the company announced it bought Adallom, an Israel-based cybersecurity startup specializing in defending programs and content in the cloud. Microsoft did not disclose the purchase price, but TechCrunch put it at $250 million.

The acquisition comes as Microsoft responds to the cloud computing trend, in which data or software is accessed remotely over the Internet.

Microsoft built its revenue selling packaged programs such as its widely used Office software for business or home computers, but the tech giant is shifting to offering that software through cloud-based subscriptions.

Adallom helps customers “protect critical assets across cloud applications,” Microsoft vice president Takeshi Numoto said in a blog post announcing the acquisition. “With more frequent and advanced cybersecurity attacks continuing to make headlines, customer concerns around security remain top of mind. These concerns pose real challenges for IT, who are charged with protecting company data in this rapidly evolving mobile-first, cloud-first world.”

Adallom works with cloud-based applications such as Salesforce, Dropbox and Microsoft’s own Office 365. 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.

News of the acquisition came the same day Microsoft announced its expansion of its partnership with Dell to widen the array of Windows 10-powered devices and services for businesses. A strong part of the push centered on Microsoft Surface Pro tablets and accessories, which Dell will start selling in Canada and the United States through an online shop at More markets will be added early next year, according to the companies.

“Our global enterprise customers have asked us to match the Surface Pro 3 and Windows 10 experience with enterprise-grade support and services — and our partnerships like this one with Dell will do just that,” Microsoft CEO Satya Nadella said in a release.

The Dell partnership kicked off a “Surface Enterprise Initiative,” and Microsoft is out to build on the popularity of its business software to make Surface the preferred tablet for businesses.

The move comes a day ahead of a media event by Apple, widely expected to unveil a new tablet aimed at businesses that could cut into the market for Surface.

Microsoft said this month it will ramp up the business capabilities of its Windows 10 operating system, which was recently released as a free upgrade and powers some 75 million devices.

Copyright Agence France-Presse, 2015

Popular Sponsored Recommendations

Why DataOps may be the key to unlocking the full potential of digital transformation

Nov. 3, 2023
Read the 2023 market survey conducted by IndustryWeek

7 Benefits of Adopting Smart Manufacturing

July 2, 2023
Make smart manufacturing a reality.

Food and Beverage 2024 Trends and Outlook for North America

Oct. 29, 2023
Ready to hear what 200 of your peers said are the top challenges and opportunities in 2024? Don’t fall behind. Uncover actionable insights to better prepare for 2024 in this whitepaper...

Shifting Your Business from Products to Service-Based Business Models: Generating Predictable Revenues

Oct. 27, 2023
Executive summary on a recent IndustryWeek-hosted webinar sponsored by SAP

Voice your opinion!

To join the conversation, and become an exclusive member of IndustryWeek, create an account today!