Oracle Corporation (NYSE: ORCL) announced yesterday via twitter and their company blog that TikTok chose them to become their secure cloud technology provider in the US, through a decision heavily influenced by the recent success Zoom had after they moved a large portion of their video conferencing capacity to Oracle’s Public Cloud.
The following announcement was also made by TikTok’s communication team:
The following statement released by the team goes as follows:
We are pleased that the proposal by TikTok, Oracle, and Walmart will resolve the security concerns of the US Administration and settle questions around TikTok’s future in the US.
As part of this proposal, Oracle will become out trusted technology provider, responsible for hosting all US user data and securing associated computer systems to ensure US national security requirements are fully satisfied. We are currently working with Walmart on a commercial partnership as well. Both companies will take part in a TikTok global pre-IPO financing round in which they can take up to a 20% cumulative stake in the company. We will also maintain and expand TikTok Global’s Headquarters in the US, while bringing 25,000 jobs across the country.
TikTok has won the hearts of hundreds of millions of people around the world, including 100 million Americans, because it’s a home for entertainment, connection, and expression. We’re delighted that the individuals who’ve turned their creativity on TikTok into thriving careers, the small businesses using TikTok to reach customers during the pandemic, and the families who’ve found joy and connection through our platform will be able to use TikTok for many years to come.
Our team works tirelessly to provide a safe and inclusive platform and we’re thrilled that we will be able to continue serving our amazingly diverse and creative community.
According to Oracle’s Chief Technology Officer Larry Ellison, “TikTok picked Oracle’s new Generation 2 Cloud infrastructure because it’s much faster, more reliable, and more secure than the first generation technology currently offered by all the other major cloud providers.” He continued by saying that “In the 2020 Industry CloudPath survey that IDC recently released where it surveyed 935 Infrastructure as a Service (IaaS) customers on their satisfaction with the top IaaS vendors including Oracle, Amazon Web Services, Microsoft, IBM, and Google Cloud… Oracle IaaS received the highest satisfaction score.”
Oracle CEO Safra Catz said “As a part of this agreement, TikTok will run on the Oracle Cloud and Oracle will become a minority investor in TikTok Global,” and that “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. This greatly improved security and guaranteed privacy will enable the continued rapid growth of the TikTok user community to benefit all stakeholders.”
“I have given the deal my blessing,” President Trump said. In other words, President Trump has let the deal go through!
For many TikTokers across the country, this comes as great news, as their social media platform of choice is not getting banned in the US. The crisis has been adverted at practically the last second. If the deal would have failed, the ban would’ve taken place today!
From President Trump initially placing a ban on TikTok for national security reasons, Oracle stepping in with a bid to keep TikTok available in the US, this news finally puts an end to this saga, and hopefully brings about positive change for the platform as a whole.
Oracle has stated in a press release that they also took a 12.5% stake in TikTok Global.
To learn more about TikTok, visit https://tiktok.com/about. To learn more about Oracle Cloud, which will be used by TikTok for its US operations and secure cloud services, visit https://oracle.com/cloud.