- Oracle says reports of failed Microsoft deal were ‘inaccurate’
- Both companies regularly explore other partnership options
- Microsoft actively uses competing clouds to support its customers
Oracle says reported details about its cloud deal with Microsoft are “inaccurate” (via PK Press Club), and that Microsoft remains both a customer and partner of OCI as the two companies continue to collaborate.
“We have an extremely collaborative and successful partnership, where we often discuss ways we can expand on our ongoing work together,” a company spokesperson said.
Business Insider had reported that a deal between the two companies was under pressure due to security and compliance concerns.
Microsoft and Oracle still work together
According to previous reports, the deal could have been worth more than $3 billion, making it one of the largest cloud infrastructure leasing deals among all hyperscalers. The goal was to give Microsoft access to additional GPUs and compute, which it could distribute among its own customers and for AI training and inference.
Microsoft has already had to turn to AWS for additional computing as it struggles to keep up with demand for GitHub’s AI tools, with commitments expected to increase 14-fold in just a year.
According to the report, Microsoft was struggling with OCI’s lack of a Federal Risk and Authorization Management Program (FedRAMP), which it only offers to government cloud customers. Amazon and Google’s public clouds, on the other hand, have FedRAMP.
Oracle recently announced a 47% increase in cloud revenue, more than twice the growth of the entire business, which was already at a very impressive 21%. At $9.9 billion, its cloud business now accounts for more than half of its entire revenue.
Microsoft has not commented on the matter.
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