Microsoft Acquires CloudKnox: Expanding Cloud Security Capabilities

Microsoft Expands Cybersecurity Capabilities with CloudKnox Acquisition

Microsoft has finalized the acquisition of CloudKnox Security, a company specializing in identity and access management (IAM). This marks the tech corporation’s fourth cybersecurity-focused acquisition within the current year.

Strengthening Microsoft’s Security Portfolio

The financial details of the transaction remain undisclosed. However, this acquisition underscores Microsoft’s commitment to bolstering its security offerings. Just recently, the company announced its intent to purchase RiskIQ, a threat intelligence firm.

Prior acquisitions include those of CyberX and Refirm Labs, both focused on securing Internet of Things (IoT) devices. These strategic moves demonstrate a significant investment in expanding Microsoft’s security portfolio.

Security represents a substantial revenue stream for Microsoft, generating over $10 billion in 2020. This figure reflects a notable 40% increase compared to the previous year.

CloudKnox’s Role in Enhanced Security

Founded in 2015, CloudKnox emerged from stealth mode in 2017. The company assists organizations in implementing the principle of least privilege, thereby minimizing risks and preventing potential security breaches.

Before being acquired, CloudKnox had secured $22.8 million in funding from investors including ClearSky, Sorenson Ventures, Dell Technologies Capital, and Foundation Capital.

Integration with Azure Active Directory

CloudKnox’s activity-based authorization service will be integrated with Azure Active Directory. This integration will provide customers with detailed visibility, continuous monitoring, and automated solutions for managing permissions across hybrid and multi-cloud environments.

According to Joy Chik, corporate vice president of identity at Microsoft, organizations are increasingly benefiting from cloud adoption and flexible work arrangements.

Addressing Challenges in Multi-Cloud Environments

However, many organizations encounter difficulties in effectively assessing, preventing, and enforcing privileged access across complex hybrid and multi-cloud infrastructures.

“CloudKnox delivers comprehensive visibility into privileged access,” Chik explained. “It enables organizations to optimize permissions and consistently enforce least-privilege principles, reducing risk and preventing breaches.”

Furthermore, continuous analytics are employed to ensure ongoing compliance and strengthen Microsoft’s overall cloud security approach.

Broader Integration with Microsoft Security Services

Beyond Azure Active Directory, Microsoft intends to integrate CloudKnox’s capabilities with other key security services. These include 365 Defender, Azure Defender, and Azure Sentinel.

CloudKnox CEO on the Acquisition

Balaji Parimi, founder and CEO of CloudKnox, stated, “Joining Microsoft will allow us to create new synergies and simplify the protection of multi-cloud and hybrid environments for our shared customers.”

He further emphasized that this acquisition will contribute to strengthening the overall security posture of their combined customer base.