Major cloud security acquisition allegedly made by Microsoft

Software giant, Microsoft, has been attempting to position itself as a leading light in the emerging cloud industry. And now, Reuters reports that the company is apparently in the process of acquiring a cloud security firm called Adallom, as part of a deal worth an alleged $320 million (£205 million).

Cloud security is the chief concern of the majority of businesses which are in the process of adopting a relevant platform within this industry. With a raft of recent acquisitions under its belt, most of which are targeted at enhancing the cloud solutions that it has on offer, Microsoft is fending off competition from Google, Amazon and others.

Adallom itself was only founded three years ago and currently employs just 80 people, both in the US and in Israel.

It no doubt caught the attention of Microsoft as a result of the fact that it offers cloud security to businesses, keeping their mission critical data on third party servers, such as those offered by its new American parent firm.

The flexibility of the cloud ecosystem is such that it allows a range of companies to operate within it as well as profit from it, meaning that Microsoft and others can run the hardware infrastructures while Adallom and its contemporaries offer additional services, to further enhance the functions available to enterprise clients.

Cloud security concerns stem from the fact that data will be hosted off-site, on hardware over which individual users have no control. And there have been instances of security breaches, as well as government monitoring, which caused controversy in the market.

However, with intelligent systems in place, it is possible for the cloud to meet and exceed expectations of security, especially when compared with on-site setups, which can be just as vulnerable to exploitation.