The Pentagon chooses Amazon and Microsoft for its cloud project

Overcoming other giants, Amazon and Microsoft are selected by the US Department of Defense to directly bid for the cloud computing project of The Pentagon.

Reuters on April 11 reported that Amazon and Microsoft will continue bidding for an agreement to provide cloud computing services to the Pentagon – the headquarter of the US Department of Defense. According to the Pentagon, the contract to provide cloud computing services worth up to 10 billion dollars and will last 10 years.

This decade-long military contract is part of an investment project called Joint Enterprise Defense Infrastructure (JEDI).

JEDI could be temporarily understood as a common cloud data infrastructure project created, stored and provided by enterprises. JEDI, to put it more simply, is the US Department of Defense data transfer to a single enterprise that wins the bid, making it easier to manage and secure. This project is expected to play an important role in modernizing the entire Pentagon information technology system.

According to Defense Ministry spokesman, Elissa Smith, AWS (Amazon Web Services) and Microsoft Azure are the only two services that meet the minimum requirements given.


Before the new decision was announced, Amazon, IBM, Microsoft and Oracle were the leading companies in the bidding for this lucrative military contract. At that time, Amazon was the only company allowed by Washington to handle their top-level confidential data.

Currently, AWS is still leading the cloud race. However, Microsoft has made great efforts to close the gap. According to experts, if the company of CEO Satya Nadella wins the contract, this contract would completely change the appearance of the cloud computing industry.

Any company that successfully wins this project will certainly benefit a lot from the long-term domino effect. First, it will definitely win more US government contracts in the future. According to analysts, the US government is likely to spend up to $ 20 billion on cloud computing services. Next, enterprise-type customers can hardly refuse any business cooperation offer from a company that is officially chosen by the US government.


Ms. Smith also says it would not until at least mid-July that the contract could be signed. The reason is that this is a large-scale contract and it is difficult for both sides to reach an agreement while minimizing the risk of litigation and investigation.

Earlier, Oracle said it doubted the role of an AWS employee, who previously worked for the JEDI project. Specifically, this person had been an old employee of Amazon until he joined this huge project. Later, he quitted his job at the US Department of Defense and went back to work at AWS - Amazon's subsidiary.

However, according to Ms. Smith, the Defense Department's inspector investigated this story. And the results of the investigation show that there are no conflicts of interest that are likely to affect their transparency.

By: Frank Bennett

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