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Cloud contract of Microsoft cancelled by Pentagon

For services rendered over 10 years, the JEDI cloud contract was meant to modernise the Pentagon’s IT operations

In s significant development, the US Department of Defense (DoD) announced on Tuesday that the $10 billion JEDI (Joint Enterprise Defense Infrastructure) cloud contract awarded to Microsoft in 2019 has been cancelled by Pentagon, 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”.

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

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. The Microsoft shares went down after the decision of cancelling the cloud contract was made public.

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

Amazon in December last year, by asking a US judge to set aside the award to Microsoft, decided to pursue its legal battle challenging the decision a year after Microsoft was awarded the $10 billion JEDI cloud contract.

After Microsoft was awarded the decade-long cloud contract, Amazon cloud computing business arm, Amazon Web Services (AWS), filed a bid protest directly to the DoD, challenging the decision.

The company vowed to continue its protests after the Department of Defense reaffirmed in September that it did a re-evaluation of the contract proposals and found that Microsoft has won the cloud contract.

AWS attacked the re-evaluation process in a court filing.

Amazon believed that the re-evaluation process was highly flawed, and subject to undue pressure from the US President Trump.

AWS said that the DoD’s re-evaluation is “nothing more than an attempt to validate a flawed, biased, and politically corrupted decision”.

Also read: DigiYatra: A paperless journey experience for domestic air traveller

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Khushbu Soni
Chief Editor - CIO News | Founder & CEO - Mercadeo


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