Microsoft officially confirmed its acquisition of cloud access security broker Adallom Tuesday, more than a month...
after the deal was first reported by various news outlets.
Terms of the acquisition were not disclosed. In a blog post, Takeshi Numoto, Microsoft's corporate vice president of cloud and enterprise marketing, wrote that the Adallom acquisition will bolster Microsoft's effort to deliver enterprise identity and security capabilities to customers with on-premises and cloud environments. "Adallom expands on Microsoft's existing identity assets, and delivers a cloud access security broker, to give customers visibility and control over application access as well as their critical company data stored across cloud services," he wrote.
Like other CASBs, Adallom specializes in providing a secure gateway from enterprises to third-party cloud applications and services. Adallom's platform offers security policies and controls for popular SaaS offerings and cloud services such as Office 365, Google Apps and Dropbox. The platform also provides cloud application monitoring and discovery services that can identify high-risk or anomalous behavior as well as shadow cloud usage.
Numoto also said the CASB startup, which was founded in 2012, "will complement existing offerings that Microsoft makes available today as part of Office 365 and the Enterprise Mobility Suite (EMS)," although the announcement didn't specify what those offerings were. In addition, Adallom's platform will complement the recently-released Microsoft Advanced Threat Analytics, a security monitoring and anomaly detection tool for on-premise environments, according to Numoto.
The acquisition price was not disclosed by Microsoft. Bloomberg News cited a source claiming Microsoft paid $250 million for Adallom, but an earlier report from The Wall Street Journal claimed the deal was for $320 million in cash.
Microsoft's purchase of Adallom marks another major acquisition in the CASB space, also known as the cloud security gateway market. Last year enterprise security firm Imperva Inc. acquired Skyfence, a CASB startup founded in 2012, for approximately $60 million. And Blue Coat Systems Inc. recently acquired Perspecsys Inc., a CASB based in McLean, Va., for an undisclosed amount.
Netskope adds more VC funding
In other CASB market news, Netskope Inc. announced recently that it had secure $75 million in Series D funding, which marks the largest round yet for the CASB startup. The most recent round was led by Iconiq Capital, with additional participation from existing investors Accel Partners, Lightspeed Venture Partners and the Social+Capital Partnership.
The Los Altos, Calif.-based company has raised more than $130 million since it was founded in 2012. Netskope said in the past year, its customer base has grown by 500% with a 600% increase in revenue. Like Adallom's platform, Netskope's Active Platform offers granular security policies and controls for popular cloud apps and services, as well as cloud discovery services and user behavior monitoring. Netskope also offers encryption for files and data being stored or processed in those cloud apps and services.
Prior to Netskope's $75 million round, Adallom and Elastica each closed on a $30 million round of funding earlier this year.