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Adallom
Adallom
Adallom
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Adallom was a cloud security company based in Menlo Park, California. It secured enterprise software-as-a-service (SaaS) application usage, audited user activity, and protected employees and digital assets from threats.[1]

Key Information

Adallom was acquired by Microsoft for $320 million in July 2015.[2][3] The Adallom product was rebranded as Microsoft Cloud App Security (MCAS) and announced in general availability as of April 2016.[4] In November 2021, Microsoft Cloud App Security was rebranded as Microsoft Defender for Cloud Apps.[5]

History

[edit]

Adallom was founded in 2012 by Assaf Rappaport, Ami Luttwak, and Roy Reznik, who are former members of the Israeli Intelligence Corps’ Unit 8200 and alumni of the Talpiot program. Adallom’s namesake originates from Ad Halom, otherwise known as the “last line of defense.”(Ad Halom - עד הלם - meaning 'until here', or 'until today' in direct translation, and is biblical Hebrew) [6] In 2013, the founding team was joined by Michael Nicosia, at which point the company pivoted directions using the core solution. Adallom secured $4.5 million (~$5.86 million in 2024) in Series A funding from Doug Leone of Sequoia Capital and Zohar Zisapel.[7] The company secured $15 million (~$19.5 million in 2024) in series B funding led by Index Ventures with contributions from Sequoia Capital Israel.[8]

Adallom was named by CRN as the 10 Coolest Security Startups of 2013.[9]

Following Adallom's acquisition by Microsoft, its cofounders went on to work together again in cofounding Wiz.[10]

Product

[edit]

The founders created Adallom with the adage that SaaS as a class is secure, but the way employees utilize SaaS is not. In November 2013, Adallom launched a security service that audits activities performed in SaaS applications and develops intelligence to protect from IT security issues, providing SaaS end-user enablement while maintaining IT control and visibility. It provided tools to build a consistent security policy across all cloud applications in use within an enterprise.[11]

Adallom’s Smart Engines technology worked similarly to the way credit card companies track transactions that appear out of the ordinary because it stopped attacks by providing near-real-time reports of odd behavior.[12]

In December 2013, Adallom discovered and reported a token hijacking vulnerability (CVE-2013-5054) bug in Microsoft Office 365.[13] The identity theft vulnerability in Office 365, found in the wild, allowed attackers to grab user identities and steal email and documents.[14] The problem was reported by Noam Liran, chief software architect at Adallom, and the fix was addressed in Microsoft Security Bulletin MS13-104.[15]

References

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Adallom

View on Grokipedia
from Grokipedia
Adallom was a cybersecurity company founded in 2012 by Assaf Rappaport, Ami Luttwak, and Roy Reznik that specialized in (CASB) solutions for software-as-a-service (SaaS) applications. Based in , with additional operations in , , the company developed a platform providing real-time visibility, , threat detection, and protection for enterprise cloud environments, including applications like Office 365 and . Adallom's technology focused on monitoring user activity, identifying anomalous behavior, and enforcing security policies without requiring changes to existing infrastructure. The company raised approximately $49.5 million in venture funding from investors including Index Ventures and before its acquisition. Recognized as a 2014 Gartner Cool Vendor, Adallom gained prominence for addressing the growing risks of and unauthorized cloud app usage in enterprises. Its solutions emphasized context-aware security, enabling automated responses to potential threats such as or insider risks. In September 2015, Microsoft acquired Adallom to bolster its identity and access management capabilities in the cloud, integrating the technology into Azure Active Directory and Office 365 security features. The acquisition, for an undisclosed amount reported as approximately $250 million, marked 's tenth investment in an Israeli startup and accelerated its strategy to secure hybrid cloud environments. Post-acquisition, Adallom's innovations were rebranded as Microsoft Cloud App Security in 2016 and later integrated into Microsoft Defender for Cloud Apps in 2021, contributing to ongoing advancements in 's cloud security portfolio, including tools for SaaS governance and compliance as of 2025.

History

Founding and early development

Adallom was founded in 2012 in , , by three co-founders: Assaf Rappaport, who served as CEO, along with Ami Luttwak and Roy Reznik. All three were in their mid-20s at the time and shared prior experience in cybersecurity from their service in the Israeli Defense Forces' elite , a unit known for producing tech talent. The company's initial mission centered on addressing security gaps in software-as-a-service (SaaS) applications, as cloud adoption accelerated after 2010 and exposed enterprises to new risks from data breaches in environments. The founders were motivated by their observations of these vulnerabilities during consultations with chief officers, who highlighted the challenges of securing data in rapidly expanding ecosystems without traditional controls. From 2012 to 2013, the team developed an early product prototype that emphasized real-time monitoring of SaaS activity to detect and prevent threats. This prototype utilized an agentless approach, integrating via APIs to provide visibility and protection without requiring software installations on endpoints or network reconfiguration. In 2014, Adallom gained early industry recognition when named it a Cool Vendor in Infrastructure Protection for its innovative security solutions.

Funding and growth

Adallom secured its initial funding through a of $4.5 million in December 2012, led by Israel and investor . This capital supported early product development and initial market entry in . The company followed with a $15 million Series B round in January 2014, led by Index Ventures, with participation from Israel. These funds enabled scaling of operations and expansion into the U.S. market. In April 2015, Adallom raised $30 million in a Series C round led by Ventures and Venture Partners, joined by investors including EMC Ventures, Index Ventures, and Israel, bringing total funding to approximately $50 million. The funding fueled rapid operational growth from 2013 to 2015, transitioning from beta testing with Israeli enterprises to serving a global customer base that included high-profile clients such as , , , and Jive Software. This expansion was marked by strategic hires, particularly in sales and engineering, to support international demand; the company grew its workforce to around 90 employees by 2015, with about 50 in research and development in . To access Silicon Valley talent and proximity to key markets, Adallom established its U.S. headquarters in , in 2014 while maintaining its development center in , . This dual-location strategy enhanced recruitment of specialized personnel and facilitated partnerships with American enterprises. During 2014 and 2015, Adallom solidified its position as a leader in the emerging (CASB) category, recognized for its innovative approach to visibility, governance, and protection of cloud applications. Its platform's ability to monitor and secure SaaS environments positioned it ahead of competitors in addressing enterprise cloud security challenges.

Acquisition by Microsoft

In July 2015, reports emerged of 's intent to acquire Adallom, an Israeli cloud security startup, for approximately $320 million in cash and stock, marking the software giant's tenth acquisition in . The deal was first reported by Israeli business publication and confirmed by sources familiar with the matter, highlighting Adallom's rapid ascent from its 2012 founding to a high-value exit just three years later. Microsoft officially announced the acquisition on September 8, 2015. The acquisition aligned with Microsoft's strategic expansion in cloud services, particularly as Azure competed against and in a market increasingly focused on security. Adallom's cloud application security technology was seen as a key complement to Microsoft's existing identity and access management tools, such as those in Office 365 and the Enterprise Mobility Suite, enabling better visibility and control over data in multi-cloud environments. Negotiations reportedly began in early 2015, culminating in a signed by mid-July, with the deal officially closing on September 8, 2015, after swift regulatory approvals without significant obstacles. As part of the transaction, Adallom's cofounders—Assaf Rappaport, Ami Luttwak, and Roy Reznik—joined to lead ongoing development efforts in .

Products and services

Cloud security platform

Adallom's cloud security platform is an agentless, cloud-native solution launched in November 2013, designed as a (CASB) to deliver visibility, governance, and protection for enterprise SaaS applications including Office 365, , , , and . The platform operates as a security-as-a-service offering, integrating seamlessly with cloud services in minutes without requiring endpoint agents or network reconfiguration, thereby minimizing deployment complexity for hybrid cloud environments. Architecturally, the platform leverages real-time through integrations for direct application connectivity and proxy-based monitoring—deployable as a service or —to inspect user activities and data flows without disrupting workflows. This dual approach enables inline policy enforcement, such as blocking unauthorized actions, while maintaining performance for enterprise-scale operations. Key use cases center on threat detection in cloud environments, where the platform employs heuristics to identify and mitigate risks like suspicious user behaviors in real time, and compliance management through comprehensive audit logs that support standards such as . capabilities further enhance these functions by flagging deviations from normal activity patterns across SaaS apps, aiding in proactive risk reduction. The platform evolved from its 2013 prototype, which focused primarily on auditing and monitoring SaaS activities, to a full-featured solution by 2015, incorporating advanced governance and layers for broader enterprise adoption and scalability in multi-tenant setups. In 2014, Adallom was named a Gartner Cool Vendor in infrastructure for its innovative SaaS-focused approach.

Key features and capabilities

Adallom's platform provided comprehensive visibility into application usage through real-time monitoring and analytics tools. It offered a centralized for activity summaries and continuous scoring of SaaS applications, enabling administrators to track user interactions across supported services. generated customized profiles based on normal activity patterns, typically established over about 60 days, to detect deviations such as unusual locations or bulk file downloads. Risk scoring assigned severity levels to anomalies, flagging potential threats like unauthorized access, while discovery identified usage of over 13,000 applications, including unsanctioned ones, to uncover hidden risks. Governance features emphasized granular policy enforcement to maintain compliance and data protection. Administrators could implement intuitive, point-and-click policies for access controls, including context-based restrictions such as device pinning and network access controls that considered factors like or device type. Built-in data loss prevention (DLP) rules supported eDiscovery and sensitive data , allowing organizations to tag, encrypt, and restrict sharing of critical information within SaaS environments. These controls extended to major cloud applications, including , , , , Ariba, and Office 365, ensuring consistent policy application without disrupting user workflows. Protection mechanisms focused on proactive through inline and automated responses. The platform acted as a , blocking anomalous activities in real-time, such as suspicious uploads or access attempts, via algorithms. detection integrated with third-party sandboxing to scan cloud-bound files, preventing infections from spreading. Automated remediation included workflows that triggered intelligence-driven actions, like session termination for high-risk behaviors, to address efficiently. Advanced capabilities enhanced enterprise scalability and interoperability. The solution supported API-based integrations with existing security infrastructure, including SIEM systems for centralized logging and alerting. Deployable either on-premises or in the , it scaled to handle high-volume traffic as a proxy for all application access, providing seamless protection across diverse environments without requiring endpoint agents.

Business operations

Headquarters and partnerships

Adallom was founded in , , in 2012, where it initially maintained its primary operations. By 2014, the company had relocated its headquarters to , in the , to facilitate closer engagement with the U.S. enterprise market, while retaining a dedicated center in . The company's workforce expanded significantly during its growth phase, reaching approximately 80 employees by mid-2015, comprising experts in cybersecurity drawn from military and industry backgrounds, alongside specialists in cloud engineering and . This team structure supported Adallom's focus on building a platform, with distributed operations bridging its Israeli innovation roots and American commercial presence. Adallom pursued strategic partnerships with key SaaS and identity management providers to enhance its platform's interoperability and market reach. In June 2015, it announced an integration with for Business, enabling administrators to monitor data sharing, enforce governance policies, and mitigate security risks without disrupting user workflows. Additionally, Adallom supported SAML-based integrations with identity providers like , allowing seamless and access controls for enterprise environments. These alliances underscored Adallom's emphasis on embedding its security controls within existing cloud ecosystems, leveraging Israel's robust cybersecurity talent pool to drive technical collaborations.

Customers and market impact

Adallom's primary customers were large enterprises, including several companies in the technology and finance sectors, such as HP, , , , and . These organizations adopted Adallom's platform to address compliance requirements during their migration to cloud services, particularly for securing SaaS applications like and Office 365. By 2015, Adallom had established a strong foothold among mid-to-large enterprises transitioning to environments, serving a growing number of clients focused on visibility and control over app usage. The company played a key role in pioneering awareness of the (CASB) category, with its acquisition by highlighting its leadership in enabling secure adoption for businesses handling sensitive data. Adallom's platform contributed to the cloud security market by helping customers mitigate risks, such as discovering an average of seven administrators per 100 users in SaaS applications and 19% of users bypassing identity and access management controls. In the competitive landscape, it vied with rivals like Skyhigh Networks and Netskope, differentiating itself through agentless deployment that allowed quick setup in minutes without disrupting user workflows. This ease of implementation accelerated its traction among organizations seeking rapid protection for cloud-based operations.

Legacy and influence

Integration into Microsoft

Following the acquisition of Adallom by in September 2015, the company's cloud security platform was swiftly rebranded and integrated into 's ecosystem, forming the foundation of Microsoft Cloud App Security (MCAS), which reached general availability in April 2016. This integration enhanced security for Azure and Office 365 by providing visibility, control, and protection over cloud application usage, including support for services like , , , and . Adallom's platform complemented 's Enterprise Mobility Suite and Advanced Threat Analytics, enabling real-time monitoring and governance without disrupting existing workflows. Adallom's founders—Assaf Rappaport, Ami Luttwak, Roy Reznik, and key team members including VP of Product Yinon Costica—joined Microsoft's Cloud Security Group, with operations centered in and contributions extending to Redmond. Rappaport assumed leadership of Microsoft's cloud security division, while the team drove product roadmaps, including the development of the Azure security stack and refinements to by streamlining features for enterprise deployment. The technological merger incorporated Adallom's (CASB) capabilities into MCAS, adding app discovery through log analysis and risk scoring, granular prevention (DLP) via integrations, and threat protection using user behavioral analytics and . These features enabled proxy-based session controls and -driven discovery, extending broader threat protection across Microsoft's cloud services like Office 365 and Azure Active Directory. By 2017, the integration was fully operational, with Adallom's core technology powering advanced features in MCAS, which evolved into Microsoft Defender for Cloud Apps to provide comprehensive CASB functionality.

Founders' subsequent activities

Following the 2015 acquisition of Adallom by , co-founder Assaf Rappaport served as the head of 's Group, leading product development and growing the division into a multi-billion-dollar business until early 2020. In January 2020, Rappaport co-founded Wiz, an Israeli startup, where he assumed the role of CEO and drove its rapid expansion into a valued at over $10 billion by 2023. Under his , Wiz achieved $500 million in annual recurring revenue within four years and announced its agreement to be acquired by for $32 billion in March 2025—a deal that received regulatory approval in November 2025 and is expected to close in 2026—marking one of the largest cybersecurity deals in history. Co-founder Ami Luttwak joined Microsoft post-acquisition as CTO of the Cloud Security Group, where he oversaw product innovation, acquisitions, and incubation efforts for cloud security technologies until 2020. He then co-founded Wiz alongside Rappaport, taking on the role of CTO and contributing to its agentless cloud security platform, which emphasizes API-based scanning for rapid deployment and comprehensive visibility. Similarly, co-founder Roy Reznik served as principal R&D group manager at Microsoft, focusing on cloud security engineering until 2020, before co-founding Wiz as VP of R&D, where he led the development of scalable security scanning capabilities. Yinon Costica, who had been VP of Product at Adallom, advanced to Partner Director of Product Management for Microsoft's Cloud Security Group, scaling it to $1.5 billion in revenue by 2020, and subsequently joined Wiz as co-founder and VP of Product. The founders' tenure at , building on Adallom's agentless monitoring expertise for SaaS applications, directly shaped Wiz's innovative agentless approach to multi- , enabling frictionless integration and broad coverage without software agents. This foundation propelled Wiz to serve 45% of Fortune 100 companies and culminate in its announced transformative acquisition agreement by , which is expected to enhance the tech giant's offerings. Post-2015, the founders have remained active in Israel's cybersecurity ecosystem, mentoring emerging startups and fostering talent from through investments and advisory roles that promote -native innovations.

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