With TikTok Deal, Oracle Could Gain Billion-Dollar Cloud Customer

Oracle’s deal to act as TikTok’s new “trusted technology partner” could be worth more than $1 billion in potential revenue annually for Oracle’s cloud business in the coming years, according to previously undisclosed data viewed by The Information.

Revenue from housing TikTok’s data on Oracle’s servers would provide a major lift to the database company’s cloud efforts, which lag far behind those of its rivals. The deal would also take business away from Google and Amazon, cloud competitors that have counted TikTok as a major customer in the past year or two as the app grew. Financial details of TikTok’s cloud spending shed new light on the high-stakes courtship for the viral video app among the biggest enterprise tech companies, including Microsoft, which until two weeks ago was seen as the leading contender to buy the app’s U.S. operations outright.