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The Pentagon is reportedly considering scrapping its Microsoft-led JEDI project

The Visitor’s Center at Microsoft Headquarters campus is pictured July 17, 2014 in Redmond, Washington.
The Visitor’s Center at Microsoft Headquarters campus is pictured July 17, 2014 in Redmond, Washington. (Image credit: Stephen Brashear/Getty Images for Microsoft)

What you need to know

  • The Pentagon awarded Microsoft its JEDI cloud computing contract in 2019.
  • Amazon claims that foul play led to it losing the contract.
  • The litigation headaches are big enough that the Pentagon is reportedly considering nixing the whole project.

It seems the fights over JEDI aren't stopping anytime soon. After being awarded to Microsoft in 2019, the Pentagon's JEDI cloud-computing project and its associated contract have been the subject of legal controversy as Amazon has claimed the Trump administration interfered with the awarding of the deal. Based on a new report, it seems the Pentagon's tolerance for JEDI headaches is nearing an end.

According to The Wall Street Journal, Pentagon officials are toying with the idea of killing the JEDI project, given how much of an annoyance it's become. Thanks to Amazon's litigation efforts, the $10 billion deal may not be a win for the company, but it will at least be a mutual loss for both it and its competitor Microsoft.

With that being said, Microsoft has another lucrative government deal in the works thanks to its successful IVAS prototype netting it an almost $22 billion contract with the U.S. Army. However, losing a $10 billion contract is bound to be an unpleasant reality for the tech giant if the Pentagon decides to scrap JEDI and reassess its cloud computing plans.

This development from the Pentagon comes not long after a judge denied requests from Microsoft and the U.S. Justice Department to dismiss Amazon's claims.

Robert Carnevale is the News Editor for Windows Central. He's a big fan of Kinect (it lives on in his heart), Sonic the Hedgehog, and the legendary intersection of those two titans, Sonic Free Riders. He is the author of Cold War 2395. Have a useful tip? Send it to robert.carnevale@futurenet.com.

13 Comments
  • This is interesting. On what grounds is Amazon basing these claims? That's more of a rhetorical question, as I doubt Amazon would waist time, money and resources just to keep MS from having the contract. A big company like this would never do anything as ridiculous as that, I'm sure. 😏 Guess I need to do a little research on this. But, as for now, it seems as if Amazon is bitter.
  • Amazon is claiming that President Trump's personal dislike of Jeff Bezos led to him influencing the Department of Defense to go with Microsoft over Amazon. Nevermind the fact that the DOD already runs on Windows, Office, Azure, etc. and that Microsoft is a trusted vendor, has more reliable products, and would represent lower migration costs...
  • I didn't know Amazon could be a jerk like Google. Go figure. When money is at stake, everyone is.
  • Amazon is one of the biggest jerks there is. Just look up their union busting practices, the fact that they knew COVID infected warehouse workers were dying and they didn't warn their coworkers that they may have been exposed, or the fact that their drivers routinely have to pee in bottles in order to make delivery quotas.
  • If they do cancel it, Microsoft should sue Amazon for screwing with their deal.
  • This will most likely happen. Amazon is a blight on the US economy.
  • Amazon is the devil.
  • well if Amazon (USA) dies then other companies will come in and take over such as Alibaba (China), FlipKart (India), etc.
  • Flipkart is owned by Walmart now.
  • Microsoft has been pro-US government for decades, working closely with the government, military, etc. They have worked hard to meet military standards and allowing them insight into their code to ensure their own systems are secure. Amazon simply does not have that same long history and relation with the government. If I were the one in charge, I would have awarded to MS as well.
  • Amazon just doesn't want anyone else on the playground.
  • How to be annoying, a guide by Jeff Bezos.
  • The dollars here are substantial to most of us, but really not that significant to these two companies. Seems like just bitterness. I agree with another post that notes the significant amount of history the Gov/DoD has had with MS. Prior performance is a factor in procurement decisions. It's a shame Amazon has thrown such a wrench into the process. There are/were lots of folks leaning forward to provide the services MS was expecting that are just sitting on their thumbs.