Oracle stock rises on report of Japan cloud contract lead

Oracle stock rises on report of Japan cloud contract lead

Gold extends losses as oil rally keeps Fed rate outlook in focus Investing.com -- Oracle (NYSE:ORCL) shares gained 1.4% in premarket trading Monday following a report that the company is leading rivals in talks to supply cloud services to Japan. The Financial Times reported that Oracle is ahead of Amazon Web Services, Microsoft, and Google in discussions to provide cloud infrastructure to the Japanese government, citing seven people familiar with the talks. According to the report, Japan has not made a final decision and could still split the contract among multiple providers, two people familiar with the situation told the Financial Times.

Oracle, Microsoft, Google, and the Japanese prime minister’s office declined to comment to the Financial Times. AWS told 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." The potential contract represents a competition among the largest cloud service providers to secure government business in one of the world’s major economies.

Government cloud contracts typically involve stringent security and data sovereignty requirements. Oracle has been expanding its cloud infrastructure business as it competes with larger rivals AWS and Microsoft Azure in the enterprise cloud market.