Pentagon to reconsider Jedi $10bn cloud contract

Pentagon to reconsider Jedi $10bn cloud contract

Pentagon to reconsider Jedi $10bn cloud contract

The US Department of Defence (DoD) has asked for permission to reconsider specific aspects of its decision to award Microsoft its $10 billion JEDI cloud contract, Reuters reported.

The US military said on Friday that it will halt all domestic travel, with some exceptions, for service members, Defense Department civilians and their families amid the fast-spreading coronavirus.

Amazon Web Services is a market leader in providing cloud computing services and had always been considered a leading candidate to run the Pentagon's Joint Enterprise Defence Infrastructure project, known as JEDI.

In a court filing, the Pentagon said the U-turn was "in response to. technical challenges presented by AWS".

"During the proposed remand, the agency could make decisions that would moot this action, in whole or in part, and may obviate the need for further litigation in this court", the government said in court papers made public on Thursday night.

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Microsoft said it "remained confident" its bid was "technologically superior".

"We are pleased that the DoD has acknowledged "substantial and legitimate" issues that affected the JEDI award decision, and that corrective action is necessary", said an Amazon spokesperson.

A federal judge issued a preliminary injunction last month preventing Microsoft and the Pentagon from proceeding with work on the contract pending the outcome of Amazon's legal challenge. Bezos, who also owns The Washington Post, is a frequent target of the United States president, who claims the newspaper is biased against him.

The new system is created to replace the DoD's ageing computer networks with a single cloud system, which will host classified secrets and provide artificial intelligence-based analysis to the military. In additional to critiques about Microsoft's online storage capability, Amazon has claimed that President Donald Trump's personal animus toward Amazon improperly influenced the outcome of the JEDI competition.

Wedbush analyst Dan Ives said one possible outcome is that the Pentagon could end up splitting the award between Microsoft and Amazon, or with other vendors.

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