Uber Will Shut Down Its Data Centers after It Signs A Cloud Agreement with Oracle, Google

Oracle has signed on as a global Uber for Business customer and selected Uber to be its preferred ridesharing company for international travel and dining

The partnership between Uber and Oracle is reciprocal. Both companies also agreed to collaborate on new delivery and retail solutions. Dara Khosrowshahi, Uber CEO, stated that the company needed a cloud provider to help them maximize innovation and reduce their overall infrastructure costs.

Uber may operate on a smaller scale than others, but 37signals, Ruby on Rails creator, and Basecamp maker, recently announced that they would be leaving the cloud because of the high cost of renting hardware. Derrick Wood, an analyst at Barron’s estimated that the Oracle deal was likely worth more than $1B.

The Wall Street Journal was told by Kamran Zargahi (uber’s senior director for technology strategy), that the company will move to a cloud provider to reduce its dependence on hardware supply chains. It will also be able to take advantage of certain cybersecurity defenses as well as compliance standards.