- Oracle says reports a Microsoft deal had broken down were “inaccurate”
- The two companies regularly explore further partnership options
- Microsoft is actively using rival clouds to support its customers
Oracle says that details reported about its cloud deal with Microsoft are “inaccurate” (via Reuters), and that Microsoft remains both an OCI customer and a partner as the two companies continue to collaborate.
“We have a tremendously collaborative and fruitful partnership, where we often talk about ways we can expand upon 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 are still working together
Per earlier reports, the agreement could have been worth more than $3 billion, making it one of the largest cloud infrastructure leasing deals between any hyperscalers. The aim was to give Microsoft access to additional GPU and compute, which it could distribute between 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 commits expected to increase 14x in the space of just one year.
According to the report, Microsoft was struggling with OCI’s lack of 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, do have FedRAMP.
Oracle recently announced a 47% rise in cloud revenues – more than twice the growth of the entire business, which was already a very impressive 21%. At $9.9 billion, its cloud business is now worth more than half of its entire revenues.
Microsoft has not commented on the matter.
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