Microsoft’s talks to lease Oracle cloud capacity have collapsed, report says
A reported deal worth more than $3bn fell apart over a US-government security framework Oracle was unwilling to add, according to Business Insider. Oracle calls the account inaccurate.
The story of the AI build-out is usually one of companies signing for more capacity than anyone thought possible. This is the rarer version: a deal that did not get done. T
alks between Microsoft and Oracle over a cloud-infrastructure leasing arrangement, reportedly worth more than $3bn, have collapsed over security and compliance concerns, Business Insider reported on Tuesday. Oracle, for its part, says the report is wrong.
The sticking point, according to the report, was a single certification. Oracle’s public cloud lacked FedRAMP, the Federal Risk and Authorization Management Program, the security framework a cloud provider needs to handle US government data, and the company was unwilling to add it.
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