Pentagon cancels $10bn contract with Microsoft after Amazon challenge
The Pentagon has canceled a $10 billion cloud computing contract with Microsoft after a challenge by Amazon.
“Today, the Department of Defense (DoD) canceled the Joint Enterprise Defense Infrastructure (JEDI) Cloud solicitation and initiated contract termination procedures,” the department said in a statement on Tuesday.
The Jedi Cloud is a classified version of normal cloud services on the Internet, such as Apple's iCloud, which are used to store and share files.
The department added that JEDI “no longer meets its needs,” as it involves “evolving requirements, increased cloud conversancy, and industry advances.”
The contract was awarded to Microsoft in October 2019 but Amazon has contested the $10 billion for more than a year.
“JEDI, conceived with noble intent and a baseline now several years old, was developed at a time when the department’s needs were different and our cloud conversancy less mature,” Pentagon acting chief information officer John Sherman told reporters. “In light of new initiatives along with changes in DOD and user requirements to leverage multiple cloud environments for mission needs, our landscape has evolved and a new way ahead is warranted.”
The contract was aimed at building a cloud-computing system for the Pentagon but Amazon alleged that it was denied the deal due to political reasons.
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