Israel's own cybersecurity firm, Check Point, uncovered the vulnerability and reported it to Microsoft.
Media reports in recent months have estimated that the deal is worth approximately $165 million.
Israeli CyberArk company has released a new research that points at a decade-old vulnerability in the Windows Group Policy Object (GPO) software.
The cloud could be the new growth engine of the Israeli economy as a whole, and the government sector in particular.
The flaw, which researchers said was fixed prior to yesterday’s announcement, could lead to widespread data-theft campaigns, compromised credentials, ransomware attacks and even corporate espionage.
Digital transformation, the leading global business strategy for the last five years, relies on and is driven by three main technologies: artificial intelligence, robotics and the Internet of things.
Microsoft explained that it had decided to end all of its minority investments in companies that sell facial recognition technology.
“I have full confidence in Michal and the team in Israel to continue the tremendous momentum of the development center in Israel in recent years"
The tech giant's first cloud datacenter region in Israel will offer Azure cloud computing services to local customers in 2021, with Office 365 to follow.
Thallium is believed to be operating from North Korea and the hackers targeted government employees, think tanks, university staff and individuals working on nuclear proliferation issues.