Microsoft Corp. won a $10 billion, 10-year cloud-computing contract from the U.S. Department of Defense, beating out larger cloud rival Amazon.com Inc. after a contentious battle. In a brief bulletin, the Pentagon revealed Friday afternoon that Microsoft had won the contract for the Joint Enterprise Defense Infrastructure, or JEDI, project that is meant to modernize the Department of Defense's tech infrastructure. Bidding for the lucrative contract led to a rare lawsuit before the award was decided, as Oracle Corp. accused Amazon of having an unfair advantage through ties to the Pentagon. International Business Machines Corp. also protested its removal from the process, which led to a one-on-one battle between Microsoft and Amazon. President Donald Trump even publicly said he was considering getting involved after receiving complaints from companies that felt Amazon had an inside track, and Defense Secretary Mark Esper removed himself from the decision-making process this week. Microsoft shares gained more than 2% in late trading after the announcement was made, and Amazon shares fell about 1%. Read More...
Microsoft Corp. won a $10 billion, 10-year cloud-computing contract from the U.S. Department of Defense, beating out larger cloud rival Amazon.com Inc. after a contentious battle. In a brief bulletin, the Pentagon revealed Friday afternoon that Microsoft had won the contract for the Joint Enterprise Defense Infrastructure, or JEDI, project that is meant to modernize the Department of Defense’s tech infrastructure. Bidding for the lucrative contract led to a rare lawsuit before the award was decided, as Oracle Corp. accused Amazon of having an unfair advantage through ties to the Pentagon. International Business Machines Corp. also protested its removal from the process, which led to a one-on-one battle between Microsoft and Amazon. President Donald Trump even publicly said he was considering getting involved after receiving complaints from companies that felt Amazon had an inside track, and Defense Secretary Mark Esper removed himself from the decision-making process this week. Microsoft shares gained more than 2% in late trading after the announcement was made, and Amazon shares fell about 1%.
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