After a monthslong investigation by the Pentagon, the Department of Defense said Friday that it’s sticking with Microsoft for its $10 billion cloud computing contract. And Amazon is not happy.
After a monthslong investigation by the Pentagon, the Department of Defense said Friday that it’s sticking with Microsoft for its $10 billion cloud computing contract. And Amazon is not happy. As a quick refresher: Microsoft was originally awarded the Joint Enterprise Defense Infrastructure, or JEDI, contract in October 2019 after facing off against other tech giants like IBM, Oracle, and Amazon in a fierce, yearslong bidding process. The contract would provide cloud computing services to the U. S. Army and is valued at as much as $10 billion for services rendered over a decade. Amazon, with its nearly 48% market share in the global cloud computing industry, was long considered to be the clear frontrunner until the process’s final phase. The pushback was swift: Amazon filed a federal court complaint claiming that it only lost the contract because President Donald Trump wanted to “screw” over Amazon CEO Jeff Bezos (which, granted, Trump’s history of disdain for the man isn’t exactly a secret) and won a federal court injunction in February to pause work on the project pending an investigation into “unmistakable bias” and other issues in the procurement process.
