Microsoft wins $10 billion cloud contract with US defense

Microsoft has received an order from the US defense to provide cloud services. The contract is worth ten billion dollars and will in principle run for ten years. Major companies such as Oracle, IBM and Amazon also preyed on the contract.

Reuters, among others, writes that the JEDI project, or the Joint Enterprise Defense Infrastructure Cloud, is intended, among other things, to give the US military better access to defense data on battlefields and other remote areas. According to the New York Times, defense today mostly runs on technology from the 80s and 90s.

It is somewhat surprising that all cloud services are provided by a single provider, but the Pentagon believes this is the best first step in the overall IT modernization it needs. In the future, however, cloud services should be provided by different companies, according to the US defense.

Amazon, the leader in cloud services, tells Reuters it is “surprised” at the outcome of the trial. “An in-depth comparison of the various offerings, based purely on the content of the services, should clearly lead to a different conclusion,” the internet giant said. It is considering filing a complaint.

Oracle has long complained about partiality in the process, but has always said that Amazon in particular would have an unfair advantage. This is because it has already won a major cloud contract with the CIA. Google has previously withdrawn from the trial over protests from its employees over the ethical implications.

US President Trump has repeatedly expressed his preference for Amazon not to receive the contract. However, according to Reuters information, the Pentagon has not complied with Donald Trump’s request to penalize Amazon.