Microsoft-Oracle cloud deal collapses over FedRAMP gap

A multibillion-dollar cloud infrastructure deal between Microsoft and Oracle has collapsed, reportedly due to Oracle's public cloud lacking a key federal security certification. The proposed arrangement, which sources said was worth over $3 billion, would have seen Microsoft lease computing capacity from Oracle Cloud Infrastructure.

The negotiations broke down because Oracle's public cloud does not have authorization under the Federal Risk and Authorization Management Program (FedRAMP), a mandatory security framework for cloud services handling U.S. government data. According to sources familiar with the matter, Oracle was unwilling to pursue the certification for its public cloud to salvage the agreement. An Oracle executive separately acknowledged that implementing FedRAMP across its public cloud would require a massive engineering undertaking.

Oracle disputed the account of the failed deal, with a spokesperson stating the reported details were inaccurate. The spokesperson emphasized that Microsoft remains both a partner and customer of Oracle Cloud Infrastructure and that the two companies maintain a strong, collaborative relationship. Microsoft has not issued an official...