August 12, 2020

Battle for the cloud: Amazon takes the Pentagon contract with Microsoft to court | Innovation

The U.S. Department of Defense opened a public tender a little over a year ago For a special contract. It was the JEDI project (Joint Enterprise Defense Infrastructure), which seeks to outsource data hosting in the cloud. With an estimated value of around 10,000 million dollars, it has quickly become one of the most coveted contracts in the history of the sector.

Analysts expected the concession go to amazon. The Pentagon, however, granted the contract to Microsoft. Microsoft's first decision was to start the legal process to protest against the award. On Friday he stepped forward in his battle and denounced the Pentagon under secrecy, so as not to reveal sensitive information.

It is assumed that a good part of the case will be based on the open confrontation between the president of the United States, Donald Trump, with that of Amazon, Jeff Bezos, among other issues, for the fees charged to Washington. In July, Trump surprised lawmakers and technology companies by openly questioning whether the JEDI contract was taking competitive criteria, and cited alleged complaints from Microsoft, Oracle or IBM.


The contract, called Joint Defense Infrastructure Company (JEDI, in English), aims to replace its own storage systems with cloud data from technology giants, allowing access to the latest technology and massive servers.

"Numerous aspects of the JEDI evaluation process contained clear deficiencies, errors and an obvious bias, and it is important that these issues be examined and rectified," the Seattle company (Washington State, USA) said in a statement.

In addition to the economic value of the contract itself, its importance goes even further, since this – the largest in the history of the Pentagon in the technological field – is seen as the pioneer that other government agencies can follow.

Amazon is not the only losing bidder that will sue the Pentagon. Oracle is also appealing a July ruling by the United States Court of Federal Claims that decided to deny its appeal to the termination of the contract.

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