May 12 (UPI) — In October 2019, the U.S. Department of Defense unexpectedly awarded Microsoft a $10 billion cloud computing contract instead of Amazon, considered the most promising,media reported. Microsoft has actually been quietly teaming up with Oracle to take a break from Amazon, according to newly declassified documents.
Over the years, the relationship between Microsoft and Oracle has been complex, competing in many areas and facing the challenges of a strong Amazon. Declassified documents show that the two companies have been quietly working together since April 2018 to help persuade the U.S. Department of Defense not to award the so-called “Joint Enterprise Defense Infrastructure” (JEDI) contract to Amazon.
Lobbyists at Microsoft and Oracle have joined forces to urge influential political leaders to present their case to the Pentagon, and have funded a task force through a conservative think tank that argues that the U.S. military should not award contracts to an entity. Both companies want the Defense Department to break up the contract, which will be undertaken by several companies. Amazon’s AWS is a market leader in cloud computing.
In June 2019, Microsoft also struck a deal with Oracle to consolidate its cloud computing services, which will be combined through high-speed links between data centers, with the goal of competing with big corporate users in the cloud computing market and joining forces against Amazon. It’s no surprise that the laggards in the cloud computing market are sniping at the leading Amazon by joining forces.
Amazon, the U.S. Department of Defense and Microsoft are suing for contract rulings, which Amazon claims are unfair and biased in the process of awarding procurement contracts. Last week, Amazon and Microsoft executives engaged in a “war of words” on their blogs, with both accusing each other of misrepresenting the facts. (Small)