Oracle has gained a leading position in the competition to supply Japan with a top-secret cloud service.
According to seven individuals with knowledge of discussions between technology companies, the Japanese government, and U.S. officials, the Texas-based company is ahead of Amazon.com Web Services, Microsoft, and Alphabet in the race to provide an air-gapped cloud for Japan.
An air-gapped cloud offers heightened security, with its core feature being a complete disconnection from the internet; government agencies can transfer information between isolated cloud environments using specialized gateways equipped with advanced protective mechanisms.
Oracle founder Larry Ellison, an ally of former U.S. President Donald Trump, signaled early to Japan its ability to provide a higher security-grade service, distinguishing it as the primary bidder.
The informed sources stated that while both Microsoft and Amazon.com Web Services possess extensive practical experience in deploying air-gapped systems, their commercial considerations have led to a lower bidding interest, having previously indicated to Japan that the security level of commercial cloud solutions is sufficiently adequate.
These sources also revealed that the two companies have expressed dissatisfaction with the U.S. conclusion that Japan must adopt an air-gapped cloud.
Oracle, Microsoft, Alphabet, and the Japanese Prime Minister's Office all declined to comment. Amazon.com Web Services stated that a British media report was "inaccurate," asserting that the company can provide clients with a full suite of air-gapped solutions for hosting top-secret information.
Amazon.com Web Services said, "We engage with all our clients, including the Japanese government, to tailor architectures that best meet their security, data sovereignty, and mission requirements."
Japan has not yet reached a final decision. Two sources indicated that the procurement contract could still be split. There is also information suggesting Japan might first build its own air-gapped cloud and later introduce commercial cloud technology to handle sensitive, but non-"top-secret," data.
U.S. Ambassador to Japan, George Glass, is leading a dedicated task force responsible for liaising between Oracle, other bidders, and the Japanese government.
Opponents of the air-gapped solution point out that it carries extremely high costs, involves a lengthy implementation timeline, and necessitates building new data centers within Japan.
A Japanese government advisor acknowledged that there is unease within Japan about selecting an American company, noting that Trump's past dealings with allies have shaken Japan's trust in the U.S. government.
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