Microsoft News: Software giant Microsoft suffered losses due to its contract with the Pentagon. See why the agreement between the two companies was cancelled?
The US military Pentagon announced today that it has terminated a cloud contract with Microsoft. The reason for this move, which dealt a heavy blow to Microsoft, is quite interesting. A $10 billion contract to build a single cloud for the Joint Enterprise Defense Infrastructure (JEDI) Cloud, a US military vehicle, and as part of a broader digital modernization program, was submitted to Microsoft in 2019. The Pentagon’s decision was challenged by Amazon, which competes with Microsoft in the cloud computing market.
Pentagon cancels $10 billion contract with Microsoft
According to the army; With the changing technology landscape, it became clear that the long-delayed JEDI Cloud contract no longer meets the DoD’s need to fill capacity gaps. The Pentagon is currently planning a new Joint Warrior Cloud contract, which appears to be an attempt to appease both companies.
It is believed that with the option of other major cloud providers, including Google, IBM and Oracle, it will end up with Amazon and Microsoft at the same time. Unlike the original program, the new program is designed for 5 years, not 10 years. It has not yet been announced how many billion dollars the new contract will be.
Putting a stone in front of Microsoft, Amazon, as you know, has a very wide network around the world with AWS. Amazon, which wants to add the American army to its portfolio, considers Microsoft’s contract as a monopoly. Let’s see with the new tender that will be opened towards the end of this year, which company will be entrusted with the network infrastructure of the Pentagon.