Microsoft shores up server business with BlueTalon purchase


On July 29, Microsoft announced it purchased data-centric security company BlueTalon Inc. The Big Tech firm didn’t disclose details of the acquisition, but it did note the sale would “enhance our ability to empower enterprises across industries.” The corporation intends to use its new subsidiary’s staff and intellectual property to make Azure services more secure.

BlueTalon Details

Founded in 2003, the Redwood City, California-based BlueTalon helped enterprises protect their data by implementing fine-grain access control. With its tools in place, business users can only access information they’ve been authorized to and no more. The firm also offers data masking and stealth analytics features that create a visible trail of all data access processes.

Consequently, BlueTalon’s customers can quickly audit and identify any unauthorized data access events. Furthermore, the firm’s tools provide a level of detail in its audits that are regulatory compliant.

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Before its acquisition by Microsoft, BlueTalon had raised $27.4 million in funding. Most recently, the company received $16 million in a Series A round led by Maverick Ventures (Dollar General) in 2016.

Why Microsoft is Investing in its Cloud Computing Service

While primarily known for its Windows operating system, Microsoft’s services segment now provides a significant portion of its revenue. Moreover, the firm’s intelligent cloud division has seen remarkable growth this year. In its fiscal year Q4 2019 results, the company noted it earned $1.7 billion, a 22 percent gain from 2018.

Microsoft noted its Azure business drove its cloud services growth because its revenue grew by 64 percent year-on-year. The corporation attributed those gains to high infrastructure-as-a-service and platform-as-a-service sales. Indeed, Synergy Research indicates the Redmond, Washington-based corporation represents 16 percent of the cloud computing market.

Currently, Amazon dominates the sector with a 33 percent market share.

With BlueTalon under its umbrella, the company should be able to harness its new technologies to tighten up its cloud computing service. Accordingly, Microsoft should be able to better differentiate itself from Amazon and other rivals such as IBM and Alibaba.

Several large tech companies are taking an interest in the cloud computing sector because of its high growth potential. Currently, the intelligent cloud market is worth $214 billion. But market analyst firm Gartner notes the industry will increase in value by 54 percent to reach $331 billion by 2022.