Channel investors, Content, IoT

Microsoft Acquires CyberX; Azure Cloud Gains IoT Security Services


Microsoft has acquired CyberX, an Internet of Things/Operational Technology (IoT/OT) security company. The deal will boost various Microsoft Azure cloud services and MSSP partners with more security capabilities. Financial terms were not disclosed.

This is M&A deal number 253 that MSSP Alert and ChannelE2E have covered so far in 2020. See the complete M&A deal list here.

Rumors about the Microsoft-CyberX deal first surfaced in early May 2020. At the time, the rumored price tag was $165 million.

CyberX, founded in 2013, has developed IoT/OT-aware behavioral analytics and agentless technology for asset discovery, vulnerability management, and continuous threat monitoring.

MSSPs should watch for CyberX technology to surface in such areas as:

  • Azure IoT stack;
  • Azure Security Center for IoT; and
  • Azure Sentinel, the first SIEM with native IoT support.

MSSPs and security-minded MSPs should pay particularly close attention to Azure Sentinel. A growing number of managed security services providers are embracing that tool for cloud-based SIEM (security information and event management) capabilities.

CyberX: Microsoft and MSSP Relationships

CyberX in February 2020 announced API-level integration with Microsoft Azure Security Center for IoT. The move “enabling joint clients to gain a unified view of security across all their managed and unmanaged IoT devices,” the company said at the time.

CyberX in February also joined the Microsoft Intelligent Security Association, which is a group of technology providers who have integrated their solutions with Microsoft products to provide customers better protection, detection, and response.

MSSP Relationships: CyberX’s strategic partners include resellers, managed security services providers (MSSPs) and cybersecurity technology companies.

The company’s XCELERATE partner program works with such Top 200 MSSPs as:

The company also works with key technology suppliers to MSSPs (such as Fortinet and Palo Alto Networks).

In a prepared statement about the CyberX partner program, Microsoft said it is committed to the channel and will continue working with CyberX’s strategic reseller and technology partners worldwide.

CyberX’s customer base spans:

  • Three of the top 10 global pharmaceutical companies
  • Four of the top 10 global telecommunications companies
  • Three of the top 10 U.S. energy utilities
  • Two of the top five French manufacturers
  • Two of the top 20 Japanese enterprises

Microsoft Acquires CyberX: Executive Perspectives

Nir Giller, co-founder, CyberX
Nir Giller, co-founder, CyberX
Omer Schneider, co-founder, CyberX
Microsoft TK Michal Braverman-Blumenstyk

In a prepared statement about the deal, Microsoft Corporate VP Michal Braverman-Blumenstyk said:

“CyberX’s technology and team are a great addition to Microsoft. With CyberX’s expertise and innovative platform, together with Microsoft’s exciting security products, Microsoft is offering a powerful and scalable solution that accelerates digitalization for enterprises at all phases of their IoT/OT journey.”

Added Omer Schneider, co-founder and CEO of CyberX:

“Nir and I founded CyberX with the goal of delivering a scalable solution that would be easy to deploy and reduce risk for enterprises worldwide. We’re thankful to our loyal customers and partners as well as to our dedicated employees whose innovation and hard work made it possible for us to reach this important milestone, and also to our investors for their ongoing support.”

Concluded Nir Giller, co-founder, GM International, and CTO of CyberX:

“By joining forces with Microsoft, we will rapidly scale our business and technology to securely enable digital transformation for many more organizations. Together, CyberX and Microsoft provide an unbeatable solution for gaining visibility and a holistic understanding of risk for all IoT and OT devices in your enterprise.”

Microsoft Acquires CyberX: Next Moves

Schneider and Giller will join Microsoft, and the CyberX platform will continue to be enhanced and supported by CyberX personnel. Moreover, CyberX platform will continue to be available in a hybrid model supporting both cloud-connected and air-gapped networks, Microsoft said.

Joe Panettieri

Joe Panettieri is co-founder & editorial director of MSSP Alert and ChannelE2E, the two leading news & analysis sites for managed service providers in the cybersecurity market.