Microsoft said to add another cybersecurity vendor to its acquistion list

Microsoft may have purchased another cybersecurity vendor, Adallom, to bolster its cloud-security play.
Written by Mary Jo Foley, Senior Contributing Editor

Microsoft may have bought yet another cloud-security vendor.

An Israeli financial site reported on July 19 that Microsoft bought Adallom -- a company with its R&D efforts headquartered in Tel Aviv -- for $320 million. (Adallom's corporate headquarters are in Palo Alto, Calif.)

Another site, Geektime, reported the same day that it was receiving conflicting reports as to whether Microsoft has purchased Adallom.

Adallom has developed a system to monitor the use of software-as-a-service applications from Salesforce, Google and Microsoft. Among Adallom's claims to fame: The startup uncovered an Office 365 security flaw it reported to Microsoft.

Microsoft bought Israeli cloud-security vendor Aorato Ltd. for an undisclosed amount in November 2014. Aorato was founded by Israeli Defense Forces veterans. Coincidentally (or not), Adallom's founders also met while serving in the Israel Defense Forces.

Microsoft rebranded Aorato as Advanced Threat Analytics. Microsoft is planning to add Advanced Threat Analytics to its Enterprise Mobility Suite -- a subscription-service bundle consisting of Azure Active Directory Premium, Azure Rights Management and Intune.

"Microsoft isn't commenting," said a Microsoft spokesperson when I asked about rumors of the company buying Adallom.

"We can neither confirm nor deny any of the questions you may have related to recent rumors," a spokesperson for Adallom answered me via email after I asked about Microsoft's rumored purchase of the company.

One of my contacts said that Microsoft has been on a buying spree for cloud cybersecurity companies. The codename for the Adallom purchase may be "Andover," according to that contact.

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