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Amazon’s Bull Case Just Got Stronger Thanks to a Huge Pentagon Contract

December 8, 2022
The Pentagon announced the issuance of several contracts worth up to $9 billion for a cloud-computing project called the Joint Warfighting Cloud Capability. The news comes a little over a month after Amazon’s cloud business, AWS, reported revenue growth of 27% for the third quarter—the slowest increase since 2014 and well below the 32% Wall Street had penciled in. Amazon’s stock is down 47%, to $90, this year, versus a 30% drop in the Nasdaq Composite. Read More...

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Pentagon awards $9 bln cloud deal to big tech

STORY: The Pentagon has an early Christmas present for big tech. On Wednesday (December 7) it handed out cloud computing contracts worth a total $9 billion to four firms: Alphabet-unit Google, Amazon Web Services, software giant Microsoft and Oracle Corp. That’s to build the so-called Joint Warfighting Cloud Capability. The system will provide globally available cloud services across all security domains and classification levels. It replaces a troubled earlier effort. The Joint Enterprise Defense Infrastructure, or JEDI, died in the courts. It was originally awarded to Microsoft. But Amazon sued, saying that then president Donald Trump leant on officials to steer the contract away from it. Now the new deals run until 2028. They could put the military more in line with private sector firms, many of which split their cloud contracts among multiple suppliers.

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