Microsoft wins Pentagon’s $10 bln cloud computing contract
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Microsoft wins Pentagon’s $10 bln cloud computing contract


Microsoft has won the Pentagon’s massive $10 billion cloud computing contract, the Defense Department said on Friday The company was selected over Amazon.com, which had been considered the favorite before President Donald Trump threatened to intervene in the bidding process Tech giants Oracle and IBM also bid for the contract. The Joint Enterprise Defense Infrastructure Cloud (JEDI) contract is part of a broad modernization of the Pentagon’s information technology systems, but the bidding process became mired in conflict of interest allegations involving a former Pentagon employee who worked on the contract and for Amazon Oracle and IBM protested the bidding process last year. The Joint Enterprise Defense Infrastructure Cloud contract is part of a broad modernization of the Pentagon’s information technology systemsTrump waded into the fray in July, saying that the administration would ‘take a very long look’ at the process because he had heard complaints Trump has frequently expressed his ire for Amazon and founder Jeff Bezos, who also owns the Washington Post The president said at the time he had heard from companies that the contract ‘wasn’t competitively bid ‘ The award follows revelations from a speechwriter for former Defense Secretary Jim Mattis, who alleges in a book published next week that Trump had wanted to ‘screw’ Amazon out of the contract, as part of his long running feud with Bezos Trump publicly stated earlier this year that he wanted to see other ‘great companies’ bid for the contract       Trump waded into the fray in July, saying that the administration would ‘take a very long look’ at the processThe JEDI system will store and process vast amounts of classified data, allowing the U S. military to use artificial intelligence to speed up its war planning and fighting capabilities RELATED ARTICLES Previous 1 Next Jeff Bezos loses $7billion in one day as Amazon stock EXCLUSIVE: Defense secretary Jim Mattis said he would rather. Share this article Share The Department of Defense emphasized in an announcement that the process was fair and followed procurement guidelines It noted that over the past two years, it has awarded more than $11 billion in ten separate cloud-computing contracts, and said the JEDI award ‘continues our strategy of a multi-vendor, multi-cloud environment ‘The statement appeared designed to address previous criticism about awarding such a large deal to one company The award follows revelations from a speechwriter for former Defense Secretary Jim Mattis, who alleges in a book published next week that Trump had wanted to ‘screw’ Amazon out of the contract, as part of his long running feud with Bezos (pictured)Over the last year, Microsoft has positioned itself as a friend to the U S. military. President Brad Smith wrote last fall that Microsoft has long supplied technology to the military and would continue to do so, despite pushback from employees  ‘It’s a paradigm changer for Microsoft to win JEDI,’ said Dan Ives, managing director of Wedbush Securities ‘And it’s a huge black eye for Amazon and Bezos.’The deal is a major win for Microsoft’s cloud business Azure, which has long been playing catch-up to Amazon’s market leading Amazon Web Services   Microsoft CEO Satya Nadella delivers the keynote address at Build, the company’s annual conference for software developers in SeattleMicrosoft, Amazon, Google and other tech giants have faced criticism from their own employees about doing business with the government, especially on military and immigration related projects  

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