What you need to know
- The Pentagon today reaffirmed its decision to award Microsoft a $10 billion cloud contract.
- The JEDI contract in question has come under intense scrutiny ever since Microsoft beat Amazon out for the bid.
- The contract is still on hold after a court challenge by Amazon earlier this year.
The Pentagon today announced that it still plans to continue work on the Joint Enterprise Defense Infrastructure (JEDI) contract with Microsoft after completing a re-evaluation of proposals. The deal will see Microsoft working with the Department of Defense (DoD) to modernize its IT infrastructure. The contract was awarded to Microsoft in 2019, a decision that was challenged by Amazon, who was among the bidders.
In a statement issued today, DoD said:
"We appreciate that after careful review, the DoD confirmed that we offered the right technology and the best value," a Microsoft spokesperson told CNBC. "We're ready to get to work and make sure that those who serve our country have access to this much needed technology."
As the DoD notes, the contract is still on hold due to an injunction issued earlier this year. The court proceeding was initiated by Amazon, another bidder in the selection process, which claims that the DoD's decision was influenced by bias against Amazon and its CEO, Jeff Bezos, by President Donald Trump.
In a lengthy blog post (opens in new tab) responding to DoD's decision, Amazon stated:
While the JEDI contract is held up in courts, recent reporting suggests Microsoft is currently pursuing similar contracts with foreign governments.
Well, as a none US organicatin AWS is out of the question for our part. Google has some traction in our "market", but MS brings considerably more value to the table, and even if the price of licenses are higher in total, the cost in manpower can actually be significantly reduced as system integration over the entire "ecosystem" is much broader/better/more complete with more functionality, both on the user side and on the technical back end. Three/four years ago we said using these services was out of the question.
How did they have access to pricing some shady negotiation but as long as it is a valued partnership for citizens.
Don't know how it's done in US but the bidders with their offers must be published.
Someone should tell Amazon that "value" doesn't mean "lowest price". It means "more bang for your buck."
Nice MS! Get that money!
This is such a waste of resources on Amazon's part. There was a bid and they lost, just move on to the next project. What's the best outcome they hope to achieve? If somehow the court orders DoD to award the contract to Amazon, the working relationship there would be so toxic that it's probably not worth getting into. Yes Amazon can collect the $10 billion fee, but DoD will jump on them for every single breach of service levels and not be as tolerant as with a preferred partner, making life hell for Amazon and potentially eating up a good chunk of their margin with service credit payments.
Jeff is just trying to recuperate some of the money he had to split with his wife after he cheated and got caught! Guess he feels he doesn't want to be a "two time loser" when he should focus on not being a scumbag 😉. He's just a soar loser!
Good lord. Amazon is STILL whining about this? Get OVER it already. You lost, and no amount of screaming and stomping your feet is going to change anything.
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