Microsoft Wins $10B Pentagon Cloud Contract, Amazon Loses Out

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For Microsoft, the contract is a massive win for the company’s Azure cloud computing service.


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This story initially appeared on PCMag

The U.S. government has awarded Microsoft a enormous $10 billion contract to run the Pentagon’s cloud network.

On Friday, the Division of Defense selected Microsoft for the Joint Enterprise Defense Infrastructure contract, also identified as JEDI. As component of the deal, Redmond will supply cloud computing for the Pentagon more than the subsequent decade.

The JEDI contract calls for Microsoft’s Azure service to supply a quickly on the internet network to energy U.S. military operations. The cloud infrastructure will also want to be in a position to defend against the most sophisticated cyber attacks when facilitating access to AI-powered algorithms for defense analytical purposes.

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The news is raising eyebrows simply because Microsoft’s rival in the cloud computing space, Amazon, was regarded to be the front-runner for the JEDI contract, according to The New York Instances. But back in July, President Trump mentioned he was taking into consideration intervening in awarding the JEDI contract, citing complaints created by the other bidders, which includes Microsoft, Oracle and IBM.

It is no secret that Trump is no fan of Amazon CEO Jeff Bezos. The president has accused the e-commerce giant of placing thousands of retailers out of business enterprise devoid of paying its fair share in taxes. In addition, Trump has criticized the reporting from The Washington Post, a newspaper Bezos owns.

So far, the Division of Defense hasn’t explained why Microsoft won the contract. The department’s statement merely says: “All offerors had been treated relatively and evaluated regularly with the solicitation’s stated evaluation criteria. Prior to the award, the division conferred with the DOD Inspector Common, which informed the choice to proceed.”

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In response to losing out on the contract, an Amazon spokesperson mentioned: “We’re shocked about this conclusion. AWS (Amazon Internet Solutions) is the clear leader in cloud computing, and a detailed assessment purely on the comparative offerings clearly lead to a unique conclusion.” The corporation is also taking into consideration a legal challenge to the contract more than Trump’s probable interference, according to Bloomberg.

As for Microsoft, the contract is a massive win for its Azure cloud computing service. But the company’s operate on JEDI might also attract higher scrutiny and even protest about the company’s activities with the U.S. military. In February, a group of Microsoft staff published an open letter opposing the corporation supplying its HoloLens technologies to the U.S. Army more than issues the headsets will be utilised to conduct warfare.

So far, Microsoft hasn’t commented on the contract.

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In the future, the Division of Defense mentioned it expects far more cloud computing contracts to be presented. “DOD will continue to companion closely with business to bring the greatest of industrial innovation to bear on behalf of our nation’s warfighters,” the division added.