Microsoft Shares Drop on Failed Oracle Deal
Microsoft (NASDAQ: MSFT) shares fell nearly 4% during Wednesday’s trading session following reports that discussions to lease cloud capacity from Oracle (NYSE: ORCL) ended without an agreement. The news was published by Business Insider on Tuesday, citing sources that attributed the collapse to unresolved issues related to security and compliance standards.
The talks were centered on transferring certain Microsoft workloads to Oracle Cloud Infrastructure; however, Oracle’s public cloud does not meet the Federal Risk and Authorization Management Program (FedRAMP) security requirements necessary for handling potentially sensitive government data. An unnamed Oracle spokesperson disputed claims of a deteriorating relationship, reiterating that Microsoft remains both a partner and customer.
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