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Pentagon to stick with Microsoft for JEDI cloud contract

Photo: Bill Clark/CQ-Roll Call, Inc via Getty Images

The Department of Defense reaffirmed its cloud-computing contract with Microsoft on Friday intended to upgrade the Pentagon’s IT infrastructure, according to CNBC.

Why it matters: The contract, the largest-ever of its kind with an estimated value of roughly $10 billion over a 10-year stretch, has been disputed in court by Amazon for months. The company claims that President Trump cut it and chief executive Jeff Bezos out of the Joint Enterprise Defense Infrastructure (JEDI) deal.

  • The Pentagon's reaffirmation settles questions over whether procedural errors Microsoft made in its bid could actually derail it, and comes as a blow to Amazon, which had been favored to win the contract until Microsoft received it, Axios' Kyle Daly writes.

What they're saying: “The Department has completed its comprehensive re-evaluation of the JEDI Cloud proposals and determined that Microsoft’s proposal continues to represent the best value to the Government,” said Russ Goemaere, a Defense Department spokesman cited by the Washington Post.

  • "While contract performance will not begin immediately due to the Preliminary Injunction Order issued by the Court of Federal Claims on February 13, 2020, DoD is eager to begin delivering this capability to our men and women in uniform.”

What to watch: "Today's decision could lead to more legal wrangling," CNBC notes.

Go deeper

Ashley Gold
Dec 4, 2020 - Technology

Scoop: Trump admin mulls blocking cloud firms from countries like China

Illustration: Eniola Odetunde/Axios

A proposed executive order that could keep American cloud computing companies out of certain foreign countries is being circulated within the Trump administration and to tech industry players, Axios has learned, disconcerting the firms that could be affected.

Why it matters: The proposal would likely represent a chance to plant another tough-on-China flag before the president leaves office. The Trump administration has repeatedly sought to prove that it will stand up to countries that it believes want to supplant or infiltrate American tech.

Go deeper (2 min. read)Arrow
Felix Salmon, author of Capital
Dec 3, 2020 - Economy & Business

Amazon's second great land-grab

Illustration: Aïda Amer/Axios

Amazon is in the midst of a hiring spree unprecedented in American corporate history. It's a show of force that, if history is any guide, will be extraordinarily difficult to compete with.

By the numbers: Amazon has been doing extremely well during the coronavirus pandemic. In the six months from April through September this year it made a profit of $11.6 billion. That's up from $4.8 billion in the same period of 2019, and a mere $450 million in those six months of 2017.

Go deeper (1 min. read)Arrow
Sara Fischer, author of Media Trends
1 hour ago - Politics & Policy

Journalism enters dangerous new era

Illustration: Brendan Lynch/Axios

The Capitol attack on Jan. 6 resulted in at least nine physical assaults against journalists and at least five arrests, per the U.S. Press Freedom Tracker's top editor.

Why it matters: President Trump's harsh rhetoric towards the press has empowered leaders abroad and locally in the U.S. to continue to attack press that they don't like.

Go deeper (1 min. read)Arrow

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