Microsoft Acquires Israeli Cybersecurity Startup for $250 million


Microsoft buys yet another Israeli startup, Adallom, an Israel-based cybersecurity company specializing in defending programs & content in the cloud.

By Arutz Sheva Staff


Microsoft said Tuesday it bought an Israel-based cybersecurity startup specializing in defending programs and content in the cloud, as it expands offerings for the enterprise.

Microsoft did not disclose how much it paid for Adallom, but the website TechCrunch put the purchase price at $250 million.

The acquisition comes as Microsoft responds to the trend toward cloud-based computing, 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, according to the AFP news agency.

“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 it is expanding 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.

This would be far from Microsoft’s first brush with Israel’s startup industry; the technology giant runs its Microsoft Ventures Accelerator in Tel Aviv to promote new startup endeavors.

In 2014, Microsoft purchased Equivio, an Israeli-based startup located in Rosh Haayin to the east of Petah Tikva.

AFP contributed to this report.


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