- Oracle says reports of failed Microsoft deal were ‘inaccurate’
- The two companies periodically explore other partnership options
- Microsoft is actively using rival clouds to support its customers
Oracle says reported details about its cloud deal with Microsoft are “inaccurate” (via PakGazette), and that Microsoft remains a customer and partner of OCI as the two companies continue to collaborate.
“We have a tremendously collaborative and fruitful partnership, where we often discuss ways we can expand our ongoing joint work,” a company spokesperson said.
Insider business information had reported that a deal between the two companies was under pressure due to security and compliance concerns.
Microsoft and Oracle continue to 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 hyperscalers. The goal was to give Microsoft access to additional GPUs and compute, which it could distribute to its own customers and for AI training and inference.
Microsoft has already had to turn to AWS for additional computing as it struggles to meet demand for GitHub’s AI tools, with commitments expected to increase 14-fold in the space of just a year.
According to the report, Microsoft was struggling with the lack of OCI from the Federal Risk and Authorization Management Program (FedRAMP), which it only offers to government cloud customers. Amazon and Google public clouds, on the other hand, do have FedRAMP.
Oracle recently announced a 47% increase in cloud revenue, more than double the growth of the entire business, which was already an impressive 21%. At $9.9 billion, its cloud business is now worth more than half of its total revenue.
Microsoft has not commented on the matter.
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