If there’s one big reason companies are hesitant to move to Office 365 and Azure, it’s that they’re still nervous about the cloud. So says Damon Tompkins, senior vice president of corporate and business development at Metalogix, which specializes in moving, managing and securing collaboration content.

While a majority of the customers Tompkins calls on are making the move skyward, there are many, many others that are not.

This presents a hurdle Microsoft CEO Satya Nadella needs to clear to fully execute on his cloud-first mission.

While the company’s “assume breach” security strategy, in which Microsoft’s own shrewd hackers simulate attempts to get a hold of sensitive data, its purchase of enterprise security startup Aorato late in 2014, and its many related partner solutions have gone a long way toward achieving these goals, today’s acquisition of  Adallom, may help it finally cross the chasm.

Buying a Solution

A source close to Microsoft, who has asked not to be identified, has confirmed to CMSWire that the Adallom deal has been made.

For those who aren’t familiar with Adallom, the startup — whose R&D is based in Israel and corporate headquarters are in Palo Alto, Calif. — provides services around securing data for Microsoft Office 365, Yammer, Ariba, Jive, Box, Dropbox, Google Apps, Salesforce, ServiceNow, Success Factors, among others. Its mission, simply stated is to “Keep Your Data Safe in the Cloud."

Adallom works by sitting between the end user and the Cloud. It looks for unusual patterns in usage, it reveals how data is being shared and it helps customers address compliance mandates like cloudDLP, e-discovery and encryption.

Adallom’s claim to fame, thus far, may be its discovery of a severe Office 365 token hijacking vulnerability in 2013 and its unearthing of a variant of the Zeus Trojan that targets Salesforce.com users.

We are awaiting comments form Microsoft and Adallom and will provide updates as appropriate.