This $ 10 billion contract has been the subject of a bitter legal battle between the two giants since 2019.
There is no longer a giant contract to contend with. The Pentagon announced on Tuesday that it was canceling JEDI (Joint Entreprise Defense Infrastructure), the huge $ 10 billion contract to build its cloud infrastructure (remote computing). This contract was the subject of a bitter legal battle between AWS, the cloud subsidiary of Amazon and Microsoft for many months. “With the evolution of the technological environment, it has become clear that this long-delayed contract (…) no longer meets the requirements to fill the capacity gaps.From the Ministry of Defense, a spokesperson said in a statement.
This contract aimed to switch the computer systems of the American armed forces to the “cloud”. Its size and security requirements made it a major business stake.
In October 2019, it was awarded to Microsoft, after months of tough negotiations. The following month, Amazon launched an appeal, accusing the Pentagon of having made its choice for political reasons, under pressure from Donald Trump. The latter saw in the boss of Amazon Jeff Bezos – also owner of the daily Washington Post – a political opponent. A legal battle ensued.
New multicloud contract
In February 2020, a judge suspended the application of the contract. While waiting to judge the case on the merits. On Tuesday, the Pentagon decided to cancel the contract altogether, so that it could move on. Microsoft may claim compensation in connection with this cancellation.
With the Pentagon’s digital modernization and transformation needs remaining intact, he announced that another call for tenders will again be launched on a multicloud principle. Microsoft and AWS are invited to participate, as these two groups are currently “the only ones able to meet their needs“. But the ministry is going “continue market research to determine if other US-based vendors“Could also fulfill its requirements.
In 2018, the Pentagon was hit by a compromising cyber attack. The flaw came from one of its service providers in the Department of Defense. A report had more broadly pointed to the weaknesses of the US military in terms of cybersecurity.