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A scandal is brewing between Twitter and Oracle

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A scandal is brewing between Twitter and Oracle

Elon Musk’s reforms have put Twitter at odds with cloud providers
(photo: CC0 Public Domain)

Twitter’s reluctance to pay for cloud services has landed the company in new trouble. After cutting off AWS and Google Cloud, the social network also stopped paying Oracle Cloud. That could complicate Twitter owner Elon Musk’s friendly relationship with Oracle founder Larry Ellison, who has invested $1 billion in Twitter.

In an effort to optimize Twitter’s costs, Elon Musk is taking desperate measures that his counterparts don’t understand, notes Datacenter Dynamics. In March, a row broke out between Twitter and Amazon Web Services (AWS), which has been providing services to the social network since 2020. The social network refused to pay the cloud provider for services, but after AWS threatened to stop paying for Twitter ads, the conflict it got quiet.

The situation with Google Cloud Platfotm was no better, as continued non-payments forced Google to seek contacts with Musk through the management of SpaceX, with which the cloud service also cooperates. Fortunately for Musk, the problem was resolved with the arrival of Twitter CEO Linda Yaccarino, who directly agreed with Google Cloud head Thomas Kurian about new areas of cooperation.

Elon Musk allegedly tried to blackmail Google Cloud by asking to renegotiate the Cloud Services Agreement on terms more favorable to Twitter.

The billionaire optimizes not only cloud, but also local costs. He famously shut down one of Twitter’s three data centers, which Tesla eventually took over, and also laid off many IT professionals.

All this calls into question the work of one of the largest social networks in the world. Oracle is now said to be seeking direct contact with current and former Twitter employees in order to get its money from the overdue invoices.

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