The cloud computing race in 2020 will have a definite multi-cloud spin. Here’s a look at how the cloud leaders stack up, the hybrid market, and the SaaS players that run your company as well as their latest strategic moves.
TikTok’s US footprint is saved in a deal that includes Oracle and Walmart owning 20% of a newly formed TikTok Global and an IPO within 12 months.
Oracle said it will be TikTok’s cloud provider in a deal that gives it a 12.5% stake in the social media network and a key reference customer. Walmart will own a 7.5% stake and explore the intersection of TikTok and e-commerce.
In a statement, Oracle said “the technical decision” by TikTok was based on the Zoom reference account. However, TikTok, owned by ByteDance, was facing a Sunday shutdown order over security concerns by President Trump. Trump said he approved the deal earlier Saturday. Walmart announced its role in the deal for TikTok’s US operations shortly after Oracle. The Department of Commerce said the TikTok ban deadline has been extended by a week to Sept. 27.
More: With TikTok, Oracle hopes its cloud infrastructure business goes viral | ByteDance won’t allow TikTok’s algorithm to be part of a sale; Microsoft is rejected as suitor | US Commerce Department to ban TikTok and WeChat downloads starting Sept. 20
Oracle CTO Larry Ellison, who touted cloud momentum on the company’s first quarter earnings call, said that TikTok will run on Oracle Cloud. CEO Safra Catz said:
Oracle will quickly deploy, rapidly scale, and operate TikTok systems in the Oracle Cloud. We are a hundred percent confident in our ability to deliver a highly secure environment to TikTok and ensure data privacy to TikTok’s American users, and users throughout the world.
For Oracle, the cloud deal with TikTok is a win and can give it a higher profile. Should Oracle be able to use its cloud infrastructure to protect and isolate US data, TikTok will equate to a key reference customer. Oracle’s Generation 2 Cloud will isolate TikTok Global’s operations and respond to security threats autonomously.
While Oracle was looking to the TikTok deal for its cloud business, Walmart is thinking more about e-commerce.
In its statement, Walmart outlined the following:
With the TikTok Global deal complete there are a few moving parts to consider.