Pentagon Cancels Microsoft's $10 Billion JEDI Cloud Contract After Amazon Challenge
In October of 2019, the Department of Defense awarded Microsoft the Joint Enterprise Defense Infrastructure (JEDI) contract, which could have been worth upwards of $10 billion over the next decade. Afterward, Amazon, which lost the bid, filed a lawsuit with allegations that former President Donald Trump influenced the decision over his dislike for former Amazon CEO Jeff Bezos. Now, in an incredible turn of events, the Pentagon has canceled the JEDI cloud contract with Microsoft after reporting it wanted to reconsider the contract last year.
As reported by the Associated Press, the Pentagon has come out explaining that it is now canceling the JEDI contract to pursue a deal with both Microsoft and Amazon. In a statement from the Pentagon, “it has become clear that the JEDI Cloud contract, which has long been delayed, no longer meets the requirements to fill the DoD’s capability gaps,” due to a “shifting technology environment.”
This statement, however, did not mention any of the legal issues that the Pentagon faced due to its selection of Microsoft over Amazon. Another interesting note is that the move to pursue a deal with both Microsoft and Amazon seems more of a way to placate both companies rather than work things out. This change could also be a way to see who provides the best services at the lowest rates with real-world experiences. This is critical as the DOD will be using the JEDI Cloud to secure classified files and develop “efficient data sharing via its evolutionary cross domain solution, advanced data analytics capabilities, and a cutting-edge cybersecurity posture for the Department of Defense.”
Hopefully, the Pentagon will elaborate further on its plans for the new deal and an interim plan as the former JEDI contract was already behind. Whatever happens, stay tuned to HotHardware and keep an eye out for updates on the JEDI Cloud project.
