Utimaco Atalla

Utimaco Atalla

Company type	Subsidiary
Industry	Data security, cryptography
Founded	1972 (1972)
Founder	Mohamed M. Atalla
Fate	Acquired by Utimaco (2018)
Headquarters	Sunnyvale , United States
Products	Hardware security modules (HSMs), network security solutions

Utimaco Atalla, initially established as Atalla Technovation and previously known as Atalla Corporation or HP Atalla, is a specialized provider in the fields of data security and cryptography. The company offers comprehensive, government-level solutions for network security and hardware security modules (HSMs), which are integral to automated teller machine (ATM) operations and Internet security. Founded in 1972 by Egyptian engineer Mohamed M. Atalla, its HSM products have become the industry benchmark for payment card security, protecting more than 250 million card transactions daily and the majority of ATM transactions globally.

1970s

Dr. Mohamed M. Atalla, the inventor of the MOSFET, launched the company in 1972 under the name Atalla Technovation. It was a pioneer in creating encryption-based remote PIN verification technology. The firm introduced the first hardware security module, known as the "Atalla Box," which debuted commercially in 1973 as Identikey—a device combining a card reader with customer authentication capabilities to secure plastic card and PIN transactions during banks’ transition from traditional passbook systems.

A significant breakthrough was the development of the Atalla Key Block (AKB), which facilitated secure exchanges of symmetric keys and PINs. This technology laid the groundwork for cryptographic protocols later incorporated into the Payment Card Industry Data Security Standard (PCI DSS) and standards set by the American National Standards Institute (ANSI). Atalla’s innovations shaped widespread adoption of robust security modules across the payment card ecosystem and established new benchmarks for PIN verification, positioning it as an early rival to IBM in banking security solutions.

By 1976, Identikey evolved into the Interchange Identikey system, supporting online transaction processing alongside enhanced network security features, allowing banks to conduct transactions electronically over multiple networks. The introduction of the first network security processor (NSP) in 1979 further cemented Atalla’s role as a leader in cryptographic hardware development.

Dr. Atalla’s visionary leadership earned him recognition as both the "Father of the PIN" and a trailblazer in information security technologies, highlighting his influence as a founder and innovator within cybersecurity.

1980s–present

In 1987, Atalla merged with Tandem Computers, which itself became part of Compaq in 1997. By 1998, the Atalla Box had secured more than 90% of ATM networks worldwide, rising to protect approximately 85% of global ATM transactions by 2006. Following HP’s acquisition of Compaq in 2001, Atalla’s product portfolio was incorporated into HP’s offerings. After HP split its business in 2015, these products were assigned to the newly created Hewlett Packard Enterprise (HPE).

On September 7, 2016, then-HPE CEO Meg Whitman announced that HPE planned to spin off its software division—including Atalla—and combine it with Micro Focus. This move resulted in a new entity predominantly owned by HPE shareholders. Micro Focus CEO Kevin Loosemore noted that this strategy aimed to boost core earnings margins from 21% to 46% within three years through targeted acquisitions. The merger was finalized on September 1, 2017.

Subsequently, on May 18, 2018, German HSM manufacturer Utimaco revealed intentions to acquire Atalla’s HSM and Enterprise Secure Key Manager business units from Micro Focus. The deal received approval from U.S. regulatory authorities in October 2018.

Product overview

Atalla consists of a multi-chip embedded cryptographic module that includes a hardware platform, a secure firmware loader, and the firmware itself. Its main purpose is to securely load Approved application programs, referred to as personalities. The firmware is responsible for maintaining the module’s physical security and confirming its certification status.

The security policy for Atalla encompasses both the hardware and the secure firmware loader, creating a protected environment for loading authorized code. Once control transfers from the loader, the module leaves FIPS mode, ensuring that no personality can access the module’s confidential keys. The cryptographic boundary required for FIPS 140-2 Level 3 certification is established by the secure metal enclosure that contains all essential security elements.

External links

• Official website