TikTok: Oracle takes care of the cloud, Walmart of Commerce

The TikTok file closed this weekend with the decision by Oracle and Walmart to run the micro-video-sharing service on American soil (mj, Twist in the case). Oracle takes over 12.5% ​​of those created by TikTok Global and Walmart 7.5%. With the already shareholders of the Chinese ByteDance, more than half of the capital would be held by American companies.

US President Donald Trump accepted on Saturday September 19th that TikTok would continue to operate in the US by creating a unit called TikTok Global in which Oracle and Walmart would hold minority stakes, 12.5% ​​for the 1st and 2nd 7th of September. 5% for the 2nd. The agreement with the Chinese ByteDance, the owner of TikTok, provides that Walmart will be the business partner in the US, while Oracle will be the secure cloud host for the short format mobile video sharing service . American funds that already hold shares in ByteDance, the Trump administration calculates that the American investment represents the majority in TikTok.

Oracle noted in a statement that the decision to keep the public cloud was largely influenced by the fact that Zoom had already kept it for much of its video conferencing service, which has grown dramatically since the pandemic began. from Covid-19. “TikTok chose the new generation 2 cloud infrastructure from Oracle because it is much faster, more reliable and more secure than the first-generation technology currently offered by all other major cloud providers,” said Larry Ellison, chief technology officer for the California group, said in a statement. And to cite the IDC 2020 Industry CloudPath survey that surveyed 935 IaaS service customers and found Oracle had the highest IaaS satisfaction levels compared to competitors.

Oracle will quickly deploy, scale and operate TikTok systems in its cloud, said Safra Catz, CEO of the group. “We are 100% confident that we can provide TikTok with a highly secure environment and ensure privacy for TikTok users in the United States and users around the world,” she added. Oracle’s second generation cloud infrastructure has been gradually rolled out worldwide by the provider over the past two years. It is based on Oracle’s automated database and its security technologies and, in particular, isolates the execution of applications.

No technology transfer to Oracle

Chinese ByteDance, owner of TikTok, recalled today that it would not transfer any algorithms or technologies to Oracle. The latter only has to examine the source code. Within the TikTok algorithm, the recommendation engine in particular contributed to the development of the micro video sharing service, which has 800 million users worldwide, 38% between 10 and 19 years old and 29% between 20 and 29 years old (BusinessofApps numbers) .

(Update) On September 21st, a new twist was made in the TikTok US file that has not yet been fixed.