MIcrosoft buys another Israeli security company, Secure Islands, for an alleged $77.5 million

Microsoft has purchased a third Israeli security firm with its purchase of data-security firm Secure Islands.
Written by Mary Jo Foley, Senior Contributing Editor

Recent rumors about Microsoft picking up a third Israeli security company were correct.

On November 9, Microsoft announced it had purchased Secure Islands Technologies. While company officials declined to comment on how much Microsoft paid for the data-security firm, sources familiar with the matter said the purchase price was around $77.5 million.

(Original reports claimed Microsoft was paying between $100 million and $150 million for Secure Islands.)

Microsoft plans to integrate Secure Islands' technology into Azure Rights Management Service to help companies meet compliance and protection requirements of their cloud, on-premises and mobile data, Microsoft execs said.

Microsoft purchased cloud-security vendor Adallom in September. Adallom has technology that monitors the use of software-as-a-service applications from Salesforce, Google, Amazon, Dropbox and Microsoft. (In Microsoft's case, Adallom monitors Office 365.) Adallom -- a company with its R&D efforts headquartered in Tel Aviv -- is based in Palo Alto, Calif. Adallom's founders met while servicing in the Israel Defense Forces.

Microsoft bought another cloud-seucrity vendor, Aorato, with Israeli Defense Force ties, in 2014. Aorato has been rebranded as Advanced Threat Analytics.

Secure Islands main product is IQProtector, which the company describes as a "policy-driven classification and protection solution." IQProtector captures unstructured data at the point of creation so it can provide classification based on context and content. It already uses Microsoft's Rights Management Services technology to apply protection to files and emails.

Secure Islands' current list of customers includes UBS, OSRAM, Vodafone and Credit Suisse.

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