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October 5, 2012

Microsoft buys PhoneFactor

The acquisition will enable Microsoft enhance the security of its cloud services and other applications

By CBR Staff Writer

Microsoft has acquired the multifactor authentication (MFA) applications provider PhoneFactor for undisclosed sum to enhance the security of its cloud services and other applications.

The multi-factor authentication is designed to protect enterprise services and applications from data breaches if user passwords are compromised.

Microsoft Server and Tools Division corporate vice president Bharat Shah said the acquisition of PhoneFactor will help Microsoft brin multifactor authentication to its cloud services and on-premises applications.

"In addition, PhoneFactor’s solutions will help Microsoft customers, partners and developers enhance the security of almost any authentication scenario," Shah said.

Following the acquisition, PhoneFactor’s products are expected to be transitioned to Microsoft’s Volume Licensing contracts.

The existing PhoneFactor customers will continue to be supported and the company will remain open for business, Microsoft said.

In addition, PhoneFactor’s technology will continue to work with non-Microsoft products and the company’s existing partners will be able to continue to resell its products.

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The MFA applications provider already works with many Microsoft products and services, including Outlook Web Access and Internet Information Services, and interoperates with Active Directory.

PhoneFactor CEO and co-founder Timothy Sutton said: "We are thrilled to join Microsoft and look forward to bringing our secure, cost- effective and convenient authentication solutions to the millions of Microsoft customers, partners and developers around the world."

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