Negotiations between Microsoft Corp. (NASDAQ:MSFT) and Oracle Corp. (NYSE:ORCL) regarding the leasing of Oracle’s cloud infrastructure reportedly came to a halt due to security and compliance issues.

The objective was to transfer some of Microsoft’s workloads to Oracle’s Cloud Infrastructure. However, Oracle’s public cloud did not meet the Federal Risk and Authorization Management Program (FedRAMP) standards, a security framework essential for handling U.S. government data. Oracle was not ready to implement this framework, reported Business Insider.

The deal, which could have been worth over $3 billion, was called off due to these security concerns. An Oracle executive stated that integrating FedRAMP into Oracle’s public cloud would necessitate significant engineering efforts.

According to the report, public clouds from Amazon.com Inc. (NASDAQ:AMZN) and Alphabet Inc.‘s (NASDAQ:GOOGL) (NASDAQ:GOOG) Google already comply with FedRAMP.

However, an Oracle spokesperson ...