February 3, 2023

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Amazon, Google, Microsoft and Oracle get $9 billion in Pentagon cloud deals

Amazon, Google, Microsoft and Oracle get $9 billion in Pentagon cloud deals

The Pentagon Building in Washington, D.C

Staff | AFP | Getty Images

Pentagon He said Wed that AmazonAnd the The GoogleAnd the Microsoft And the inspiration They have each been awarded a cloud computing contract that could be worth up to $9 billion each through 2028.

The result of the joint Warfighting Cloud Capability, or JWCC, effort is in line with the US Department of Defense’s effort to rely on multiple providers of remotely operated infrastructure technology, rather than on a single company, a strategy promoted during the Trump administration.

An increasing number of companies have also sought to rely on more than one cloud provider. In some cases, they rely on specialized capabilities on one and majority of front-end and back-end workloads on the other. Other times, they are cost decreases. Having more than one cloud can increase organizations’ confidence in their ability to withstand service disruptions caused by outages.

Originally, it was the Pentagon awarded The Joint Enterprise Defense Infrastructure, or JEDI, for Microsoft in 2019. A legal battle ensued as Amazon, the number one player in the cloud infrastructure market, challenged the Pentagon’s decision. inspiration Challenge the Pentagon’s Choice like that.

In 2020, Pentagon Sgt Rule There is no evidence to conclude that the Trump administration interfered with the contract award process. Months later, the Pentagon announce You will stay with Microsoft for the JEDI deal.

Last year the Pentagon changed its approach, Asking for bids from Amazon, Google, Microsoft and Oracle to meet your cloud needs. But the General Services Administration said at the time that only Amazon and Microsoft appeared to be able to meet the Pentagon’s requirements.

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Wednesday’s result was a particular boon for Oracle, which analysts don’t see in the top tier of companies that provide cloud computing services. Oracle was created 900 million dollars In cloud infrastructure revenue in the quarter ended August 31, a small portion of Total $20.5 billion of Amazon Web Services, the cloud subsidiary of Amazon, in the third quarter.

All four technology companies have won contracts for indefinite delivery, indefinite quantity, or IDIQ, which means they can include an indefinite amount of services for a specified period of time.

“The purpose of this contract is to provide the Department of Defense with globally available, enterprise-wide cloud services across all security domains and classification levels, from the strategic to the tactical edge,” the Department of Defense said.

Watch: Nearly 75% of our customers use multiple cloud and data centers, says VMware CEO