Amazon lost Pentagon’s $10 billion JEDI cloud computing contract to Microsoft

The US Department of Defense has confirmed that the government has granted a mammoth $10 billion cloud contract to Microsoft. This contract also sets Microsoft as the clear winner in the cloud battle which it had with Amazon. The news in the air was either Amazon or Microsoft would win the Joint Enterprise Defense Infrastructure (JEDI) contract.

Pentagon's $10 Billion Cloud Computing Contract
Image Source: Flipboard

The contract states that it will provide the Pentagon with cloud services for basic storage and power all the way up to artificial intelligence processing, machine learning, and the ability to process mission-critical workloads. In short, the goal of JEDI is to give the Pentagon better access to data and the cloud from battlefields and other remote locations.

Pentagon’s $10 billion had IBM and Oracle competing as well but were eliminated for the bidding back in April. The contract has been controversial throughout the bidding process, and Oracle lost a legal challenge after it claimed the contract has conflicts of interest.

Pentagon clarified that the winner was selected fairly and legally. “All (offers) were treated fairly and evaluated consistent with the solicitation’s stated evaluation criteria. Prior to the award, the department conferred with the DOD Inspector General, which informed the decision to proceed,” it said.

Amazon Web Services (AWS) spokesman said in a statement that the company was ‘surprised about this conclusion. The e-commerce giant said that a “detailed assessment purely on the comparative offerings would clearly lead to a different conclusion.” It is considering options for opposing the award, according to a source.

“As we continue to execute the DOD Cloud Strategy, additional contracts are planned for both cloud services and complimentary migration and integration solutions necessary to achieve effective cloud adoption,” the Pentagon said.

The Pentagon has said it planned to award future cloud deals to multiple contractors. It also added that it had awarded more than $11 billion across 10 separate cloud contracts over the past two years.


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