Adallom

Adallom was a cloud-security company founded in 2012 by Assaf Rappaport, Ami Luttwak, and Roy Reznik. Based in Menlo Park, California, the company focused on securing enterprise use of software-as-a-service applications at a time when organizations were rapidly adopting cloud services but still had limited visibility into how employees accessed, shared, and used cloud-hosted data. Adallom’s central premise was that the SaaS services themselves could be secure while the way people used them created significant risk. Its technology therefore concentrated on monitoring activity across cloud applications, auditing user behavior, discovering data usage, and applying consistent security policies across an organization’s SaaS estate. The company’s Smart Engines technology analyzed activity for unusual patterns, with an approach comparable to transaction-monitoring systems used by payment-card companies. The objective was to identify suspicious behavior quickly and help security teams investigate or interrupt attacks. The founding team had backgrounds in Israel’s Intelligence Corps Unit 8200 and the Talpiot program. Michael Nicosia joined the founding group in 2013. Adallom raised a reported $4.5 million Series A round from Sequoia Capital partner Doug Leone and Zohar Zisapel, followed by a reported $15 million Series B led by Index Ventures with participation from Sequoia Capital Israel. CRN included the company among its 10 Coolest Security Startups of 2013. Adallom also became known for reporting a token-hijacking vulnerability in Microsoft Office 365 in December 2013. The vulnerability, identified as CVE-2013-5054, could allow an attacker to obtain user identities and access email or documents. Microsoft addressed the issue through Security Bulletin MS13-104. The disclosure illustrated Adallom’s interest in identity, session, and application-level risks rather than only traditional network perimeter security. Microsoft acquired Adallom for a reported $320 million in July 2015. The acquisition ended Adallom’s life as an independent company and brought its technology and personnel into Microsoft’s cloud-security organization. Microsoft subsequently rebranded the product as Microsoft Cloud App Security, which reached general availability in April 2016. In November 2021, Microsoft Cloud App Security was renamed Microsoft Defender for Cloud Apps. The later product names reflect the continuing integration of Adallom’s capabilities into Microsoft’s broader security portfolio rather than the continuation of Adallom as a standalone brand. After the acquisition, the co-founders later worked together again and co-founded Wiz. Public information about Adallom’s independent customer base, revenue, product packaging, and post-acquisition organizational structure is limited.

Adallom was established in 2012 by Assaf Rappaport, Ami Luttwak, and Roy Reznik, Israeli technology entrepreneurs with backgrounds in Intelligence Corps Unit 8200 and the Talpiot program. The name was derived from the Hebrew expression “Ad Halom,” associated with the idea of a final line of defense. The company was headquartered in Menlo Park, California, and entered the market as enterprises were moving substantial workloads and business processes from on-premises systems to SaaS platforms. The founders argued that cloud applications could be technically secure while still being exposed through unsafe or poorly understood employee behavior. Adallom consequently developed technology for observing how users interacted with SaaS services, identifying anomalous activity, discovering where enterprise data was located and used, and enforcing policies across multiple cloud applications. Its Smart Engines technology applied behavioral analysis to detect activity that appeared inconsistent with normal usage, with the goal of producing near-real-time warnings and helping stop attacks. Michael Nicosia joined the founding team in 2013. During that year, Adallom raised a reported $4.5 million Series A round from Doug Leone of Sequoia Capital and Zohar Zisapel. It later raised a reported $15 million Series B led by Index Ventures, with participation from Sequoia Capital Israel. The company’s profile grew when CRN named it one of the 10 Coolest Security Startups of 2013. Adallom’s security-research work also attracted attention. In December 2013, its chief software architect, Noam Liran, reported a token-hijacking vulnerability in Microsoft Office 365. The issue, tracked as CVE-2013-5054, could allow attackers to capture user identities and gain access to email and documents. Microsoft fixed the problem through Security Bulletin MS13-104. The disclosure was consistent with Adallom’s focus on cloud identity, application sessions, and user activity. Microsoft acquired Adallom in July 2015 for a reported $320 million. The transaction ended the company’s independent operation and gave Microsoft technology and personnel that supported its expanding cloud-security strategy. Microsoft rebranded the acquired product as Microsoft Cloud App Security and announced it as generally available in April 2016. In November 2021, the product was renamed Microsoft Defender for Cloud Apps, integrating its capabilities more visibly with Microsoft’s Defender portfolio. Adallom therefore survives primarily as an acquisition-origin technology lineage rather than as an active independent brand. Its former co-founders later reunited to establish Wiz. Detailed public information about Adallom’s revenues, customer numbers, product editions, and internal operations is not available in the cited reference material.

• 2021

  Product is renamed Microsoft Defender for Cloud Apps

  [1]Adallomen.wikipedia.org

  Microsoft changes the Cloud App Security name to Microsoft Defender for Cloud Apps.

• 2016

  Microsoft Cloud App Security reaches general availability

  [1]Adallomen.wikipedia.org

  The acquired Adallom product is rebranded as Microsoft Cloud App Security and becomes generally available.

• 2015

  Microsoft acquires Adallom

  [1]Adallomen.wikipedia.org

  Microsoft acquires Adallom in July for a reported $320 million, ending its independent corporate operation.

• 2013

  Founding team expands and early financing is raised

  [1]Adallomen.wikipedia.org

  Michael Nicosia joins the founding group, while Adallom raises reported Series A and Series B financing to develop its cloud-security platform.

• 2013

  SaaS security service launches

  [1]Adallomen.wikipedia.org

  Adallom launches a service for auditing SaaS activity, generating security intelligence, and applying consistent policies across cloud applications.

• 2013

  Office 365 vulnerability is reported

  [1]Adallomen.wikipedia.org

  Adallom reports the CVE-2013-5054 token-hijacking vulnerability affecting Microsoft Office 365; Microsoft later issues a fix.

• 2012

  Adallom is founded

  [1]Adallomen.wikipedia.org

  Assaf Rappaport, Ami Luttwak, and Roy Reznik establish Adallom to address security risks in enterprise SaaS usage.

An enterprise cloud-security provider focused on visibility, behavioral monitoring, identity protection, data discovery, and policy enforcement across SaaS applications.

• Cloud security software · 2013

  Adallom cloud security platform

  Adallom’s principal platform was designed to secure enterprise use of SaaS applications. It provided visibility into cloud activity, audited user actions, helped discover and protect data, and supported security-policy enforcement across multiple applications. The platform addressed risks created by employee behavior, unauthorized access, compromised identities, and inconsistent controls between cloud services. After Microsoft’s acquisition, the product lineage continued as Microsoft Cloud App Security and later Microsoft Defender for Cloud Apps.

• Behavioral security analytics · 2013

  Smart Engines

  Smart Engines was Adallom’s behavioral-analysis technology. It evaluated SaaS activity for patterns that appeared abnormal or suspicious, using an approach compared in the reference material with payment-card transaction monitoring. The system was intended to produce rapid reports on potentially malicious behavior and support responses to attacks against cloud applications and identities.

• 2021

  Microsoft Cloud App Security is renamed Microsoft Defender for Cloud AppsGeneration change

  Background

  Microsoft was consolidating its security offerings under the Defender product family.

  Action taken

  In November 2021, Microsoft changed the product name to Microsoft Defender for Cloud Apps.

  Aftermath

  The Adallom technology lineage became part of Microsoft’s broader Defender-branded cloud-security portfolio.

  Source

• 2016

  Adallom product is rebranded as Microsoft Cloud App SecurityProduct launch

  Background

  Following the acquisition, Microsoft incorporated Adallom’s cloud-application security capabilities into its own product portfolio.

  Action taken

  Microsoft announced Microsoft Cloud App Security as generally available in April 2016.

  Aftermath

  The technology continued under Microsoft ownership rather than as an Adallom-branded standalone product.

  Source

• 2015

  Microsoft acquires AdallomM&A

  Background

  Adallom had developed technology for monitoring SaaS usage and protecting cloud identities and data, while Microsoft was expanding its cloud-security capabilities.

  Action taken

  Microsoft acquired Adallom in July 2015 for a reported $320 million and integrated its technology and personnel into Microsoft’s security business.

  Aftermath

  Adallom ceased operating as an independent brand. Its product was subsequently rebranded Microsoft Cloud App Security and later Microsoft Defender for Cloud Apps.

  Reported acquisition value. $320 million (July 2015)

  Source

• 2021

  Microsoft Cloud App Security becomes Microsoft Defender for Cloud Apps[1]Adallomen.wikipedia.org

  Product generation

  Microsoft renamed Cloud App Security as Microsoft Defender for Cloud Apps, placing the acquired technology under the Defender security-product family.

• 2016

  Adallom technology becomes Microsoft Cloud App Security[1]Adallomen.wikipedia.org

  Product generation · Product launch

  Microsoft announced general availability of the rebranded Microsoft Cloud App Security product, which incorporated Adallom’s acquired capabilities.

• 2015

  Microsoft acquires Adallom[1]Adallomen.wikipedia.org

  M&A

  Microsoft acquired Adallom in July 2015 for a reported $320 million, bringing the company’s cloud-security technology and team into Microsoft.

• 2013

  Adallom launches SaaS security service[1]Adallomen.wikipedia.org

  Product launch

  Adallom introduced a service for auditing activity in SaaS applications and developing threat intelligence to support security controls across enterprise cloud applications.

• 2013

  Adallom named one of CRN's 10 Coolest Security Startups[1]Adallomen.wikipedia.org

  Other

  CRN recognized Adallom among its selected security startups, increasing the company’s visibility in the emerging cloud-security market.

• 2013

  Adallom reports an Office 365 token-hijacking vulnerability[1]Adallomen.wikipedia.org

  Other

  Adallom reported CVE-2013-5054, a vulnerability that could enable identity theft and unauthorized access to Microsoft Office 365 email and documents. Microsoft addressed the issue in Security Bulletin MS13-104.

1. 1Adallomen.wikipedia.org