Cloud: Amazon, Google, Microsoft and Oracle selected to equip the Pentagon

In the end, the Pentagon chose to cut the pie in four for its cloud. The US Department of Defense has chosen to award Amazon, Google, Microsoft and Oracle a contract to accelerate their digital transformation. This public order amounts to $9 billion and runs until June 2028.

Initially, Microsoft thought it had won the day in 2019 when it was awarded a $10 billion mega-contract called JEDI (Joint Enterprise Defense Infrastructure), but the US Department of Defense finally backed down in the summer of 2021 after a bitter legal battle launched by Amazon. The e-commerce giant accused former President Donald Trump of influencing the Pentagon’s election. The former tenant of the White House harbored strong animosity towards Jeff Bezos, the emblematic founder of the American group. The latter has especially washington posta newspaper behind several embarrassing investigations for Donald Trump.

A compromise under pressure from the White House

In the new contract, called Joint Warfighting Cloud Capability (JWCC), Amazon is not excluded this time. By choosing the Seattle octopus along with other US cloud specialists Microsoft, Google and Oracle, the Ministry of Defense spared itself a series of twists and turns that could have lasted several years. When the Pentagon failed to bet everything on a single company, the Pentagon has chosen to compromise after pressure from the Biden administration.

In a difficult economic context, this mega-contract represents a serious boost for the winners, especially for Amazon, whose cloud division is experiencing an erosion of growth. In the third quarter, Amazon Web Services (AWS) saw its revenue rise 27% to $20.5 billion, up from 39% a year ago. However, this slowdown in the cloud is not a huge surprise given the rise of Google Cloud and Microsoft Azure.

Leave a Comment