Oracle (ORCL) has emerged as the frontrunner to provide Japan with highly secure, air-gapped cloud services for classified government data, ahead of rivals Amazon (AMZN) Web Services, Microsoft (MSFT) and Google (GOOG), the Financial Times reported Wednesday, citing unnamed sources familiar with the matter.

The report said Japan favored a US cloud provider after discussions with Washington, as both countries seek stronger cybersecurity to counter growing threats from China and improve intelligence sharing with allies.

Oracle reportedly gained an edge after signaling early that it would provide a fully air-gapped cloud service, while AWS and Microsoft argued that commercial alternatives would be sufficiently secure.

Japan has not made a final decision and could still split the contract, according to the report.

Oracle did not immediately respond to MT Newswires' request for comment.

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)