Adallom

The firm's core offering was a security platform designed to give IT departments visibility and control over the SaaS applications being used by employees, a phenomenon often referred to as 'Shadow IT'. Adallom's platform functioned as a cloud access security broker (CASB), positioning itself as a proxy between users and cloud services like Salesforce, Google Apps, and Microsoft Office 365. This strategic placement allowed it to monitor activity, audit user behavior, and enforce security policies in real-time without requiring agents to be installed on end-user devices. Its primary value proposition was securing corporate data within third-party cloud applications, preventing unauthorized access, and identifying potential breaches through activity anomaly detection.

The business model was centered on selling this security-as-a-service platform to enterprises concerned with data leakage and compliance in the cloud. Adallom targeted organizations that were increasingly reliant on SaaS but lacked the tools to govern usage and protect sensitive information stored off-premises. The platform's ability to create a complete audit trail of user activities for SaaS applications and provide real-time alerts for suspicious behavior made it a critical tool for IT and security teams.

After raising a total of $49.5 million in venture capital, Adallom's trajectory culminated in its acquisition by Microsoft in 2015 for a reported $320 million. Following the acquisition, the Adallom team and its technology were integrated into Microsoft's security portfolio, forming the basis of what would become Microsoft Cloud App Security. This move signaled a major validation of Adallom's approach to securing the cloud-first enterprise.