Microsoft Buys Authentication Company PhoneFactor

The authentication vendor is purchased for an undisclosed amount

By Bogdan Popa on October 5th, 2012 18:21 GMT

Microsoft has just announced in a press release that it would purchase authentication vendor PhoneFactor, but the company refused to reveal the agreed cost of the transaction.

PhoneFactor however will help Microsoft offer “a broader range of authentication services to the company’s cloud customers,” as it is mentioned in the press statement released by the two firms.

“The acquisition of PhoneFactor will help Microsoft bring effective and easy-to-use multifactor authentication to our cloud services and on-premises applications,” said Bharat Shah, corporate vice president, Server and Tools Division for Microsoft.

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

PhoneFactor is already working with Microsoft for several products, such as Outlook Web Access and Internet Information Services, but the partnership also concerns some other solutions, such as Active Directory, Windows Azure Active Directory and Office 365.

“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,” said Timothy Sutton, CEO and co-founder of PhoneFactor.

Microsoft is reportedly pursuing another company that could help it develop an online music streaming service. According to various sources close to the matter, Microsoft wants to buy Rdio, whose services could be then used for the company’s Xbox Music service.

We’ve contacted Microsoft for an official statement and a spokesperson told us that further information would be released in the near future. It’s believed that Microsoft will unveil the new Xbox Music service this month, together with the new Windows 8 operating system.

“We're not commenting on speculation around Xbox Music. What we can say is we're excited for Xbox Music as our definitive music service. It'll bring great new ways to enjoy, share and discover new music on all your Windows 8 devices, Xbox 360 console and Windows Phone 8. We'll let you know when we have more information to share,” a Microsoft spokesperson told us.
PhoneFactor is already working with Microsoft on several products
   PhoneFactor is already working with Microsoft on several products
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