Oracle stated that claims its discussions with Microsoft over a potential more-than-$3 billion cloud infrastructure leasing deal fell apart due to security and FedRAMP compliance concerns were inaccurate. The company emphasized its collaborative partnership with Microsoft’s OCI, noting ongoing discussions to expand joint cloud work.
A report claimed that discussions for a more-than-$3 billion Microsoft cloud infrastructure leasing deal with Oracle fell apart due to security and compliance shortcomings, specifically the absence of Federal Risk and Authorization Management Program authorization in Oracle’s public cloud.
Oracle issued a statement labeling the report’s details as inaccurate, reaffirming that Microsoft remains both a customer and a partner of Oracle Cloud Infrastructure and highlighting the productive, ongoing collaboration between the two companies.
The deal’s collapse raised questions about Oracle’s ability to meet stringent government security standards, but Oracle’s denial and emphasis on joint expansion efforts suggest both companies may continue exploring further collaboration in cloud services.

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