Oct 25, 2019

Microsoft wins Pentagon's $10 billion cloud computing contract

Illustration: Lazaro Gamio/Axios

Microsoft secured a $10 billion cloud computing contract from the Pentagon on Friday, CNBC reports, beating competitors like Amazon to a lucrative 10-year contract.

Why it matters, via Axios' Ina Fried: This giant deal has been a hard fought battle, as Oracle and IBM previously held hopes they could win the cloud computing prize.

Background: A dozen GOP members of Congress sent President Trump a letter in July urging him to delay the Pentagon's plan to award its Joint Enterprise Defense Infrastructure contract to a single company.

Our thought bubble, via Axios' Scott Rosenberg: The president's outspoken criticism of Amazon and its founder put the Pentagon in a tough place however the choice came down. If the government went with Amazon, it might have raised Trump's ire, but now that it is rejecting the company, it will inevitably be accused of politicizing the choice.

What they're saying:

“We’re surprised about this conclusion. AWS is the clear leader in cloud computing, and a detailed assessment purely on the comparative offerings clearly lead to a different conclusion. 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.”
— Amazon Web Services statement to Axios

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Microsoft's Pentagon cloud contract win opens new political battles

Illustration: Lazaro Gamio/Axios

Friday's announcement that the Defense Department chose Microsoft over Amazon for a huge cloud computing contract will set two new battles in motion — one procedural and one political.

Why it matters: Amazon's lawyers will likely challenge the decision, while 2020 Democratic candidates will line up to charge the Pentagon with putting its hand on the scales to please President Trump.

Go deeperArrowOct 28, 2019

Podcast: Microsoft beats Amazon for JEDI deal

Microsoft beat out Amazon for a $10 billion cloud computing contract with the U.S. Department of Defense, nicknamed JEDI. Dan digs into the deal, and its political implications, with TechCrunch's Ron Miller.

Go deeper: Microsoft's Pentagon cloud contract win opens new political battles

Keep ReadingArrowOct 28, 2019

Amazon to challenge its loss of a $10B defense contract

Photo: Chesnot/Getty Images

Amazon Web Services told the government it intends to fight the Defense Department's decision last month to award a gigantic cloud computing contract to Microsoft, a spokesperson said Thursday.

Why it matters: The politics surrounding the decision made it almost certain Amazon would challenge it, opening up the latest front in the long-running fight over the massive JEDI contract, worth up to $10 billion.

Go deeperArrowNov 14, 2019