Microsoft (Nasdaq:MSFT) has acquired Israeli cloud security company Adallom. Bloomberg Business reports that Microsoft paid $250 million, according to a person familiar with the agreement who asked not to be named because the acquisition price hasn’t been disclosed officially. The Wall Street Journal reported in July that the purchase price would be about $320 million.

“I’m pleased to announce today that Microsoft has acquired Adallom, an innovator in cloud security and a leader in helping customers protect their critical assets across cloud applications,” said Takeshi Numoto, Microsoft corporate Vice President for Cloud and Enterprise Marketing. “This acquisition is the latest example of Microsoft’s commitment to delivering innovative identity and security capabilities to our customers, across both on-premises and multiple clouds.”

Microsoft is betting big on cloud computing and cloud services for the enterprise. “We’re creating technology that becomes essential but invisible, to help you build something amazing – whether you need on-demand scalability, technology to connect your people, or real-time data insights,” states the Microsoft Cloud website. “The Microsoft Cloud is designed to empower your business, so you can do more and achieve more.”

Cloud computing frees enterprises from having to maintain in-house data centers with large processing facilities and staff, and provides them with redundancy, backups and scalability on demand, but security is often considered as a concern. With the acquisition of Adallom, Microsoft wants to boost the security of its cloud and ensure large business customers that their data and processes in the cloud will be protected by a world-class IT security team and infrastructure.