Pentagon kills $10 bn cloud contract awarded to Microsoft

Washington: In a significant development, the US Department of Defense announced that the Pentagon has canceled a $10 billion JEDI (Joint Enterprise Defense Infrastructure) contract that was given to Microsoft in 2019, leaving the favourite Amazon out of the race during the Donald Trump administration.

According to a report in CNBC, the Pentagon said that “due to evolving requirements, increased cloud conversancy, and industry advances, the JEDI Cloud contract no longer meets its needs.”

The JEDI contract was meant to modernise the Pentagon’s IT operations for services rendered over 10 years. After Microsoft was awarded the decade-long contract in October 2019, Amazon Web Services (AWS) which is the Cloud arm of Amazon, filed a bid protest directly to DoD, challenging the decision.

The Pentagon said in a statement it still needs enterprise-scale cloud capability and has announced a new multi-vendor contract known as the ‘Joint Warfighter Cloud Capability’.

The agency said “it plans to solicit proposals from both Amazon and Microsoft for the contract”.

Amazon and Microsoft did not respond immediately to the Pentagon decision. Microsoft shares went down after the decision was made public.

Microsoft had said that it won the JEDI contract because the US Department of Defense found that it offered “significantly superior” technology at a better price.


Image courtesy of (Daily Mountain Eagle)

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