JEDI Pentagon cloud contract awarded to Microsoft

"We remain deeply committed to continuing to innovate for the new digital battlefield where security, efficiency, resiliency and scalability of resources can be the difference between success and failure". The Pentagon has awarded Microsoft a $10 billion cloud computing contract called JEDI, Friday, Oct. 25, 2019.

"We're surprised about this conclusion", an Amazon Web Services told GeekWire.

After Judge Eric Bruggink dismissed its case amidst the previously pending contract period, Oracle is now appealing the decision alleging that Oracle couldn't be harmed during the JEDI contract and that the contract's requirements didn't accurately follow acquisition regulations in the DoD's decision to make the JEDI cloud a single award.

"Amazon and Microsoft...know what the criteria are against which they were being evaluated", said Professional Services Council President and CEO David Berteau on an October 28 call with reporters.

Amazon, which won a lucrative cloud contract with the Central Intelligence Agency in 2013, was seen to have the upper hand in the competition.

"Still, a win is a win and this is a huge one which should further push Azure as the favorite of the US Government and with Gates again passing Bezos as the world's richest man it also showcases Nadella's strategy of staying close to his firm's competencies as the better one long term".

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Trump, who has been a critic of Amazon and Bezos over the company's tax arrangements, even got involved during the bidding process, saying the government was looking at the contract after "getting enormous complaints" from competitors to Amazon and Microsoft.

Believed to have a smaller market share than Amazon, which received $9 billion in revenue from AWS in the third quarter, Microsoft can now add this contract to its list of major cloud-infrastructure deals it has closed with companies such as Walmart. The company will now work with the Pentagon to deliver secure cloud services for no less than ten years. A speechwriter for former defense secretary Jim Mattis has told the Washington Post that Trump intervened to lock the company out of the contract. Mattis didn't do what Trump asked, Snodgrass wrote.

Microsoft has not responded to the Daily Caller News Foundation's request for comment.

While Microsoft was announced as the victor, it's a safe bet that Amazon will be contesting that decision with Government Accountability Office until the protest window closes, based on Trump's hostility to Bezos. Nearly from the beginning, AWS was hit with complaints that it was improperly influencing the Pentagon's decision making process in an effort to get its thumb on the scale.

Microsoft's task: Microsoft is tasked with overhauling DoD's entire IT infrastructure, creating a globally available and responsive network, and providing ongoing monitoring of issues like bugs and breaches.

The Pentagon said the contract was expected to be completed by 2029. Microsoft's stock rose by 3% on Friday evening as a result. Bloomberg's Naomi Nix has more on "Balance of Power".

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