Pentagon Distributes Major Cloud Computing Deal Among 4 Companies
The work is for a brand-new cloud architecture called the Joint Warfighting Cloud Capability, which would offer cloud services to the Defense Department across all classification levels and security domains.
Those claims that President Donald J. Trump meddled in a process that favored Microsoft over its rival bidder, Amazon, led to a legal dispute over the contract for the Joint Enterprise Defense Infrastructure, or JEDI.
The Wedbush Securities tech analyst Dan Ives wrote in an email that this is the largest cloud Beltway deal in history and that it was crucial for all the software vendors to win this multiyear soap opera.
It's good to finally close this chapter and complete a cloud deal for the Pentagon after years of ups and downs.
The Microsoft contract was canceled by the Defense Department in 2021 because it was created when the department's needs were different and our cloud literacy was still in its infancy.
Officials said they would also contact IBM, Oracle, and Google even though market research suggested that Microsoft and Amazon would be best suited to meet the needs.
A larger group of technology companies gained significantly from the government contract announcement made on Wednesday.
The largest of them had vigorously pushed for the earlier JEDI contract because it was thought that this would be the best way to transform and update the military's cloud computing infrastructure.
Oracle was one of the companies that pushed the Pentagon to award contracts for cloud computing and other government projects to a number of businesses.