San Jose-based InMage Systems, the developer of cloud-based, business backup software headed by storage veteran Kumar Malavalli, has been acquired by Microsoft. Financial terms of the buy were not disclosed. Malavalli was the co-founder of Brocade Systems. Microsoft said it will integrate InMage's Scout technology into its Azure Site Recovery Service. InMage was venture backed by Hummer Winblad Partners, Intel Capital, and Amidzad Partners.