After Trump and some lawmakers complained about Amazon’s bid, the Pentagon announced Friday that Microsoft has won an exclusive contract for cloud computing in the Defense Infrastructure (JEDI) of the U.S. Department of Defense’s joint venture. The contract, which totals up to $10 billion, was completed in 10 years with a down payment of $1 billion. The contract has sparked competition from Amazon, Google, Microsoft and Oracle, after amazon, widely seen as the industry’s leading cloud computing company, won the bid.
The JEDI project will enable the sharing of U.S. defense intelligence information platforms and significantly improve defense intelligence security, Reuters said On Tuesday. In addition, the Pentagon’s choice is likely to influence similar decisions in other parts of the U.S. government in the future. The project has been bidding for more than a year, with data showing that Amazon’s AWS cloud computing platform is the first and Microsoft’s second-largest, with 48% of the cloud computing market. During the bidding period, some companies said the bidding process favored Amazon, and even launched a lawsuit for it. Microsoft has previously said that such a large-scale bidding should involve a number of companies.
The New York Times reported on the 25th that U.S. President Donald Trump has always had a bad relationship with Amazon founder and CEO Bezos, whose Washington Post often publishes articles against the Trump administration. Just a day earlier, White House officials announced that they would not renew the New York Times and The Washington Post. During the bidding period, Mr. Trump and some senior officials made clear his opposition to Amazon’s bid.
“We were surprised by the results, and AWS is clearly ahead of the curve in cloud computing,” the Washington Post said, citing an Amazon spokesman after the Pentagon announced Microsoft’s exclusive bid. “It also emphasizes that U.S. federal procurement laws prohibit any politician, including the president himself, from interfering in the winning bid decision.
The Pentagon stresses that the bid evaluation process strictly follows the relevant standards and complies with legal and regulatory requirements. Pentagon officials said the results did not mean that the project was “locked” exclusively by the current winning bidder within the 10-year period, which could be short-lived. After Microsoft’s winning bid was announced, shares jumped 3 percent in late trading after the close of 25 U.S. shares, while Amazon’s fell 0.8 percent, but Bezos gave up the day before to Take back Bill Gates’ “world’s richest man” throne.