Oracle Leads Race for Japan's Secret Cloud

Oracle is reportedly leading the race against major tech rivals like Amazon Web Services, Microsoft, and Google to supply Japan with highly secure, air-gapped cloud services. These services are considered vital by the US for facilitating robust intelligence sharing between Tokyo and its allies, especially in light of escalating threats from China.

The push for enhanced cybersecurity in Japan is a significant priority for Washington, which views stronger cyber defenses as essential for Japan to potentially join the Five Eyes intelligence-sharing network. Discussions between the US and Japan, including a past conversation between former President Trump and Prime Minister Takaichi, have underscored the urgency.

An air-gapped cloud is a system not connected to the internet, offering superior security for classified information. Oracle's early commitment to providing this specialized service has positioned it favorably. While Microsoft and AWS have experience with such systems, they reportedly showed less eagerness for this specific business case, suggesting commercial alternatives would suffice.

Japan has not finalized its decision, with possibilities including splitting the contract or initially implementing an air-gapped system for top-secret data before integrating commercial solutions for less sensitive information. The US ambassador to Japan is overseeing a working group engaged with the tech companies and the Japanese government on this matter.

Critics have raised concerns about the high cost and lengthy implementation of air-gapped solutions, requiring new data centers that could become targets. Furthermore, debates about national sovereignty and over-reliance on US technology persist, particularly following past actions by the Trump administration. Advocates for Japanese industry involvement acknowledge current local capabilities are limited, suggesting a supporting role for domestic companies.