MIcrosoft buys another Israeli security company, Secure Islands, for an alleged $77.5 million
Microsoft has purchased a third Israeli security firm with its purchase of data-security firm Secure Islands. — Recent rumors about Microsoft picking up a third Israeli security company were correct.
Context & Ripple Effects
Secure Islands is Microsoft's third Israeli security acquisition in under half a year, coming on the heels of the reported $320M Adallom cloud-security deal in July. The company brings data-protection technology, extending a buying spree that treats Israel's security startup scene as Microsoft's de facto M&A pipeline for cloud-era defenses.
First-order effects
- Secure Islands' data-security team and product join Microsoft, giving Redmond in-house information-protection capability rather than a licensing relationship.
Second-order effects
- Competing cloud providers lose access to an independent data-security vendor, pushing rivals toward other Israeli startups or building equivalents themselves.
Third-order effects
- The pattern held well beyond this deal: Microsoft went on to buy Hexadite for threat detection, CyberX for IoT and industrial security, and eventually RiskIQ for over $500M, consolidating a multi-domain security stack largely through Israeli-acquired talent.
The trend: Microsoft has spent years serially acquiring Israeli security startups at rising price points, assembling its enterprise security portfolio deal by deal.