Oracle NYSE:ORCL is reportedly leading rivals in talks to build a highly secure cloud network for Japan, putting it ahead of Amazon Web Services, Microsoft and Google in a strategically important government contract.
The proposed system would be air-gapped, meaning it would operate without access to the public internet and connect only to classified networks through encrypted hardware, according to the Financial Times. The setup is intended to protect highly sensitive government and intelligence data.
Oracle provides databases, enterprise software and cloud infrastructure to businesses and governments. Its cloud division competes directly with Amazon NASDAQ:AMZN, Microsoft NASDAQ:MSFT and Google NASDAQ:GOOG for large-scale computing contracts.
The U.S. reportedly views the project as critical to strengthening intelligence sharing between Japan and its allies. Winning the deal could give Oracle a valuable foothold in one of Asia's most sensitive cloud markets.