- Oracle says reports a Microsoft deal had collapsed were ‘inaccurate’
- The two companies regularly explore further partnership opportunities
- Microsoft actively uses rival clouds to support its customers
Oracle says information reported about its cloud deal with Microsoft is “inaccurate” (via Pakinomist), and that Microsoft will remain both an OCI customer and a partner as the two companies continue to collaborate.
“We have a hugely collaborative and fruitful partnership where we often talk about ways to expand our ongoing work together,” a company spokesman said.
Business Insider had reported that a deal between the two companies was under pressure due to security and compliance concerns.
Microsoft and Oracle are still working 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 between any hyperscaler. The goal was to give Microsoft access to additional GPUs and computers that it could distribute among its own customers and for AI training and inference.
Microsoft has already had to turn to AWS for extra compute as it struggles to meet demand for GitHub’s AI tools, with commitments expected to increase 14x in just one year.
According to the report, Microsoft struggled with OCI’s lack of the Federal Risk and Authorization Management Program (FedRAMP), which it only offers to public 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 double company-wide growth, which was already a very 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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