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.
The 💜 of EU techThe latest rumblings from the EU tech scene, a story from our wise ol' founder Boris, and some questionable AI art. It's free, every week, in your inbox. Sign up now!An Oracle executive told Business Insider that bolting FedRAMP onto its public cloud would be a massive engineering lift. Without it, the capacity Microsoft wanted to lease could not be used for the government-adjacent workloads that made the deal worth doing.
