Amazon, Google, Microsoft, Oracle Win $9 Billion Pentagon Cloud Contracts

The Pentagon Building in Washington, DC

Employees | AFP | Good pictures

The Pentagon said That’s Wednesday Amazon, Google, Microsoft And Oracle Each secured a cloud-computing contract that could reach up to $9 billion each through 2028.

The outcome of the Joint Warfare Cloud Capability, or JWCC, initiative is in line with the U.S. Department of Defense’s effort to rely on multiple providers of remotely operated infrastructure technology, as opposed to relying on a strategy promoted during the Trump administration.

An increasing number of businesses are also looking to rely on more than one cloud provider. Sometimes they rely on the specialized skills of one and the majority of front-end and back-end workloads on the other. Other times, they are Come down to the cost. Having more than one cloud gives companies more confidence that they can withstand service disruptions caused by outages.

First, there was the Pentagon provided Joint Enterprise Security Infrastructure, or JEDI, to Microsoft in 2019. The legal battle came as Amazon, the dominant player in the cloud infrastructure market, challenged the Pentagon’s decision.

In 2020, the Pentagon’s surveillance system conducted a review and He ruled There is no evidence that the Trump administration interfered in the process of awarding the contract. Months later the Pentagon declared It will stick with Microsoft for the JEDI deal.

The Pentagon changed its approach last year. Asking for bids To address cloud needs from Amazon, Google, Microsoft and Oracle. But the General Services Administration said at the time that only Amazon and Microsoft could meet the Pentagon’s needs.

Wednesday’s decision was a boon for Oracle in particular, which analysts did not see at the top tier of cloud-based computing services companies. Oracle was created $900 million Cloud infrastructure was a small part of revenue in the quarter ended August 31 A total of $20.5 billion for Amazon Web Services, Amazon’s cloud subsidiary, in the third quarter.

All four technology companies have won Indefinite Delivery, Indefinite Quantity or IDIQ contracts, meaning they can engage an indefinite amount of services for a specified period of time.

“The purpose of this agreement is to provide the Department of Defense with enterprise-class global cloud services across all defense domains and classification levels, from the strategic level to the tactical edge,” the Department of Defense said.

See: About 75% of our customers use multi-cloud and data centers, says VMware CEO

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