Microsoft (MSFT) walked away from a USD 3bln deal to lease Oracle (ORCL) cloud capacity over security concerns, Business Insider reports

Newsquawk Staff · 16 Jun 2026, 20:10 UTC

One of the people said that the deal could have been worth more than USD 3bln.
Microsoft is seeking a deal or deals with other cloud providers to prioritise its own Azure cloud computing resources on customers, the people said. "We are shopping for capacity everywhere," one of the people said.
The plan was to move some Microsoft workloads to Oracle Cloud Infrastructure, but Oracle's public cloud did not have the Federal Risk and Authorization Management Program (FedRAMP), a standardised security framework that ensures cloud services are secure enough to handle U.S. government data. Oracle was not willing to add this framework, one of the people said.
Microsoft is still evaluating and exploring options for leasing cloud infrastructure, the people familiar with the talks said. Amazon and Google's public clouds have FedRAMP.

Sources

businessinsider.com

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