Pentagon cancelled a previously Microsoft awarded $10bn contract on cloud services


The contract for the US Department of Defense’s Joint Enterprise Defense Infrastructure project awarded to Microsoft in October 2019 which have been worth $10bn was cancelled. The Pentagon will instead pursue a deal with both Microsoft and Amazon and possibly other cloud service providers. Before, Amazon filed a suit with the US Court of Federal Claims contesting the decision and argued that the Microsoft award was tainted by politics, particularly then-President ’s antagonism toward Amazon’s chief executive officer, Jeff Bezos. The Pentagon’s chief information officer, John Sherman, told media that during the lengthy legal fight with Amazon, “the landscape has evolved” with new possibilities for large-scale cloud computing services. The new program is called Joint Warfighter Cloud Capability, and both Amazon and Microsoft “likely” will be awarded parts of the business. , IBM and Oracle might qualify, too.


Amazon Web Services, a market leader in providing cloud computing services, had long been considered a leading candidate to run the Pentagon’s Joint Enterprise Defense Infrastructure project. The project was meant to store and process vast amounts of classified data, allowing the US military to improve communications with soldiers on the battlefield and use artificial intelligence. n a blog post Tuesday, Microsoft said it understands the DoD’s rationale for canceling the contract and defended its technology as being best suited for the job. In a statement, Amazon Web Services said it agreed with the decision.