Published 13:33 IST, October 26th 2019

Pentagon awards $10 billion deal to Microsoft, Amazon surprised

The US Department of Defense, Pentagon announced on October 25 that they are awarding its controversial $10 billion cloud computing business to Microsoft.

Reported by: Sounak Mitra
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US Department of Defense anunced on October 25 that y are awarding its controversial $10 billion cloud computing business to Microsoft, a decision that surprised Amazon. It's a big win for Microsoft over Amazon, which is a long-time frontrunner for Joint Enterprise Defense Infrastructure (JEDI) cloud contract that will shift  Pentagon’s computing infrastructure and data to cloud. It was anunced after an intense lobbying effort and a lawsuit filed by some of America's biggest tech companies who have accused military of supporting Amazon in a process that has dragged on for more than a year. At that time, Trump and or ministrative officials opposed and me it clear that contract should t go to Amazon. According to federal acquisition laws, politicians including President are t allowed to influence contract awards.

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JEDI is largest information techlogy contract award 

Amazon developed its lucrative cloud computing business for more than 10 years ago and currently obtains a market share of 48 percent, according to a market research firm. Microsoft is second largest with a 15.5 percent share. cloud computing contract, JEDI is military's largest information techlogy contract award in history and is expected to le to or businesses across federal government. competitors and industry analysts h expected Amazon to le and win contract due to its years of experience dealing with highly confidential data for CIA. military also gave company its highest data manment certification.

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All parties were treated equally without any favoritism

Some of m thought that Microsoft would win over Amazon for massive contract but President's role in process will become a subject of litigation. While anuncing award Defense Department said that bidding process was conducted following applicable laws and regulations. statement said that all parties were treated equally without any favoritism and evaluated consistently. Amazon's spokesperson Drew Herdener said that y are completely surprised. He ded that AWS is leer in cloud computing. On or hand, Microsoft spokesperson Frank Shaw declined comment and said that positive approach is one that levers invations of different cloud service providers.

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11:31 IST, October 26th 2019