As the dust settles over the saga of the fate of TikTok in the US, one company has emerged as a clear winner: Software maker Oracle, with the help of the federal government, snatched the storage contract on the TikTok cloud. away from google, and emerged with a 12.5% ​​stake in the world’s most popular social media app.

These developments are a major blow to Oracle President Larry Ellison, the seventh richest person and one of the few prominent Silicon Valley leaders in publicly again The president of the United States, Donald Trump. The deal offers a much-needed win for your company, which has struggled to make a dent in the cloud computing market while competing against heavyweights like Amazon, Microsoft and Google.

Ellison made his fortune from Oracle, which began selling computer databases in the late 1970s. At the time, database services were a novel concept: as more and more economics moved online, Oracle became one of the largest data hosts in the worldand acquired a number of business software companies along the way, including Sun Microsystems, which created the Java programming language.

Today, Oracle still dominates the old-school enterprise software and databases market, but missed the momentum to jump into cloud computing. Competitors have aggressively jumped on the new technology, which is intended to supplant traditional Oracle databases, and Ellison’s company has have seen your income drop as you struggle to catch up.

As Oracle Struggled for Cloud Computing Market Share away from amazon, its biggest competitor, Ellison organized a major fundraiser for Trump in February, with attendees shelling out $ 250,000 to spend a day playing golf with the president. About 300 Oracle employees organized a strike in protest. Ellison said that support the presidentand Trump called the president of Oracle a “tremendous guy”. Ellison was reportedly the first person to sell Trump the benefits of hydroxychloroquine, a discredited Covid-19 treatment that the president enthusiastically touted.

Oracle did not respond to an email asking whether Ellison’s public support for Trump had anything to do with the company’s successful effort to secure the TikTok deal.

Triumph said saturday he would support Oracle’s deal with TikTok. Becoming TikTok’s “Trusted Technology Partner” means Oracle lands a major new customer that will surely increase its cloud computing revenue, which recently made modest profits. The 12.5% ​​stake in TikTok will also help its bottom line: Last year, the app got its parent company ByteDance. $ 3 billion in profitand its operations in the United States have been valued at up to $ 50 billion.

A key component in Oracle’s winning bid to partner with TikTok was its willingness to change very little about how TikTok operates. Rival suitor Microsoft had been seen as the pioneer in reaching a deal, but its conversations with ByteDance fell through. In a pointed statementMicrosoft insisted: “We would have made significant changes to ensure that the service meets the highest standards of security, privacy, online safety and the fight against disinformation.”

Oracle made no such demands and very little is going to change. ByteDance, a Chinese company, will retain 80% control over TikTok, and a new US-dominated corporate board will oversee TikTok’s US operations. That appears to satisfy the Trump administration’s concerns, although national security vulnerabilities that existed before the deal remains as relevant as ever. Meanwhile, the United States and China are still locked in a bitter battle for technological dominance, and both have reason to claim victory in this last action.

The charge The real winner of the TikTok deal is Larry Ellison appeared first in Quartz.


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