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Photo: Bill Clark/CQ Roll Cal

The Department of Defense announced Tuesday it was canceling the massive cloud contract awarded to Microsoft in 2019, saying it "no longer meets its needs."

Why it matters: The JEDI contract was the largest-ever of its kind, with an estimated value of roughly $10 billion over a 10-year stretch. The deal, initially intended to modernize the Pentagon's IT operations, was the subject of a drawn-out legal battle with Amazon and Microsoft.

  • Amazon filed a lawsuit in 2019 claiming that former President Trump had a bias against CEO Jeff Bezos that influenced the Pentagon's decision to award the contract to Microsoft.
  • The Pentagon reaffirmed its decision to award the contract to Microsoft in September 2020.

What they're saying: "One contract has never, and will never, define our relationship with the DoD or any customer. Our decades-long partnership with the DoD will continue — and we stand ready to support our nation’s men and women in uniform as they address our national security needs," Microsoft said in a statement.

What to watch: In a press release, the Pentagon said it is still seeking an enterprise-scale cloud capability and announced a new multivendor contract, which both Microsoft and Amazon will be asked to bid for.

Go deeper

Ina Fried, author of Login
Sep 22, 2021 - Technology

Microsoft debuts new Surface hardware

Photo: Microsoft

Microsoft unveiled updates to its Surface line, including laptops, convertible tablets and an improved versions of its Android-based dual screen Surface Duo.

Why it matters: The new devices come ahead of Windows 11's official launch on Oct. 5.

Tech firms' nightmare: Vanishing green cards

Illustration: Megan Robinson/Axios

Thousands of green cards are about to go to waste, leaving Google, Microsoft and other tech companies fuming — and pushing the Biden administration to ensure it doesn't happen again.

Why it matters: Tech workers have waited years for green cards that will grant them permanent legal status in the U.S. — but because of pandemic-related processing delays, they will have to wait even longer.

2 hours ago - World

U.S: Nord Stream 2 "will not move forward" if Russia invades Ukraine

U.S. State Department spokesperson Ned Price during a press briefing at the State Department in Washington, D.C., on Tuesday. Photo: Kevin Lamarque/POOL/AFP via Getty Images

The U.S. will make sure the Nord Stream 2 gas pipeline project between Russia and Germany won't go ahead if Russian troops invade Ukraine, State Department spokesperson Ned Price told NPR on Wednesday.

Why it matters: Germany's ambassador to the U.S. appeared to support Price's strong rhetoric on the strategically significant pipeline that would circumvent Ukrainian transit infrastructure and deliver Russian gas directly to Germany, eliminating one of the last deterrents Ukraine has against an invasion, per Axios' Zachary Basu.

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