SINGAPORE: Oracle (ORCL.N) has secured its first cloud and AI services deal in Southeast Asia, partnering with Singapore’s defence technology arm to provide advanced “isolated” cloud computing solutions. According to the latest Reuters report, this landmark agreement underscores the growing importance of cybersecurity in a region facing increasing threats from cyber espionage and supply chain attacks, according to security experts.

As part of the deal, the tech giant will offer Singapore’s armed forces and defence ministry a highly secure, “air-gapped” cloud infrastructure. This system, which operates in complete isolation from the public internet, will be linked only to classified networks through encrypted devices, ensuring enhanced protection against external threats.

Rand Waldron, Oracle’s global defense chief technology officer, emphasised the integration of generative AI tools into these isolated environments. “We’re bringing our generative AI capabilities across the air gaps, making it possible to analyze sensitive data while maintaining stringent security protocols,” Waldron explained. The AI tools will assist with various applications, including analyzing video streams for facial recognition, license plates, and vehicle details—vital for defence and security operations.

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While Oracle has yet to disclose the financial terms of the deal, this collaboration marks a significant milestone in the company’s push to expand its footprint in Southeast Asia. The company has already committed to a $6.5 billion investment to establish a new cloud region in Malaysia, signalling its growing influence in the region.

This move comes as Southeast Asian governments increasingly prioritise cybersecurity, with the region becoming a frequent target of cyberattacks. Oracle’s initiative provides a critical layer of defence by delivering cutting-edge AI technology within a secure framework, reinforcing Singapore’s position as a leader in regional defence innovation.

As cybersecurity threats continue to evolve, Oracle’s deal with Singapore may serve as a model for other nations seeking to bolster their defence capabilities in an era of digital warfare.