Key Moments
- Oracle (NYSE:ORCL) rose 1.4% in premarket trading after a report that it is leading negotiations to provide cloud services to Japan.
- The Financial Times reported that Oracle is currently ahead of Amazon Web Services, Microsoft, and Google in talks to supply cloud infrastructure to the Japanese government.
- Japan has not yet made a final decision and may still divide the contract among several providers, according to people familiar with the situation.
Market Reaction and Reported Negotiations
Oracle (NYSE:ORCL) traded 1.4% higher in premarket action on Monday after a media report indicated the company is in a leading position to secure a cloud services mandate in Japan.
The Financial Times reported that Oracle is ahead of Amazon Web Services, Microsoft, and Google in discussions to deliver cloud infrastructure to the Japanese government. The publication cited seven people described as being familiar with the talks.
Contract Structure Still Undecided
Although Oracle is reported to be at the front of the pack, the outcome of the process remains open. According to the Financial Times, Japan has not reached a final decision and could still opt to allocate the project across several cloud providers. Two people familiar with the matter relayed this possibility to the publication.
| Company | Role in Reported Talks | Comment Status to Financial Times |
|---|---|---|
| Oracle (NYSE:ORCL) | Reportedly leading discussions to provide cloud infrastructure | Declined to comment |
| Amazon Web Services | Competing cloud provider | Provided a statement |
| Microsoft | Competing cloud provider | Declined to comment |
| Competing cloud provider | Declined to comment | |
| Japanese prime minister’s office | Government stakeholder in the talks | Declined to comment |
Responses From Companies and Officials
The Financial Times reported that Oracle, Microsoft, Google, and the Japanese prime minister’s office all declined to comment on the negotiations.
AWS, however, provided a statement to the publication: “We engage with every customer, including the government of Japan, to design the architecture that best meets their security, sovereignty, and mission needs.”
Strategic Importance of the Potential Deal
The reported negotiations highlight competition among major global cloud providers to win government business in a significant economy. Such public-sector cloud agreements are typically characterized by strict security and data sovereignty requirements.
Oracle has been growing its cloud infrastructure operations as it challenges larger competitors AWS and Microsoft Azure in the enterprise cloud arena.
TradingPedia.com is a financial media specialized in providing daily news and education covering Forex, equities and commodities. Our academies for traders cover 
