Oracle lends Tiktok a hand

Oracle lends Tiktok a hand

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TikTok has deployed Oracle (ORCL, $67.72) infrastructure in the US to address concerns about the Chinese government accessing consumer data in the US.

In a blog post last week, TikTok confirmed it has maintained user data in its own data centers in the US and Singapore for a long time. For more than a year, TikTok has collaborated with Oracle on a number of efforts to improve the app's security, processes, and the security of US user data.

All user traffic in the US is routed through Oracle Cloud Infrastructure. TikTok continues to back up its data centers in the US and Singapore, but it plans to remove US users' private data from its own data centers and entirely pivot to Oracle cloud servers in the US.

TikTok also stated that it is collaborating with Oracle to build data management policies that would be audited and managed by the cloud firm. TikTok's user data will be managed completely by US-based leadership and teams as a result of operational adjustments.

Why it matters

Oracle, which was once one of the world's biggest data hostshas struggled to keep up with rivals, may change the game with its 12.5% stake in TikTok Global business. The company is well-positioned to make a big splash in the cloud domain and capture more market share over the next few years. TikTok, on the other hand, has been trying to reassure users that its Chinese parent company or even the local government won't gain access to their data. Still, according to leaked audio from over 80 internal TikTok sessions, ByteDance personnel in China have routinely accessed non-public data regarding US TikTok customers. It looks like the deal will benefit both parties involved.

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