Google, Oracle, Microsoft and Amazon will share in the Pentagon's $9 billion contract to build its cloud computing network, a year after accusations of politicization over the previously announced contract and a protracted legal battle.
“It’s the most important cloud deal to come out of the Beltway,” said analyst Daniel Ives, who monitors the cloud industry for Wedbush Securities. “It’s about the Pentagon as a reference customer. It says significant accolades about what they think about that vendor, and that’s the best reference customer you could have in that world.”
Last July, the Pentagon announced it was cancelling its previous cloud computing award, then named JEDI. At the time, the Pentagon said that due to delays in proceeding with the contract, technology had changed to the extent that the old contract, which was awarded to Microsoft, no longer met DOD’s needs.
It did not mention the legal challenges behind those delays, which had come from Amazon, the losing bidder. Amazon had questioned whether former President Donald Trump’s administration had steered the contract toward Microsoft due to Trump’s adversarial relationship with Amazon’s chief executive officer at the time, Jeff Bezos.
Forrester analyst Devin Dickerson said awarding the contract to four companies instead of one shows a “multicloud strategy” that could improve the Pentagon’s bargaining position with major cloud providers and make it easier for individual offices within the Defense Department to acquire cloud technologies and services.
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