The decision also comes days after Andy Jassy, the former head of Amazon’s cloud business, took over as chief executive from Amazon founder Jeff Bezos. Mr. Jassy’s appointment underscores the importance of cloud computing to major technology companies, which have built massive data centers around the world to accommodate enterprise and business customers. new government.
The 10-year JEDI contract was awarded to Microsoft in 2019 after a battle between Amazon and other tech giants over a deal to modernize the military’s cloud computing system. Much of the military operates on outdated computer systems, and the Department of Defense has spent billions of dollars trying to modernize those systems while protecting classified documents.
Although a number of companies, including business software company Oracle, have lobbied for the Pentagon to split the contracts and hand them over to multiple vendors, the Department of Defense has continued with its plan to use one. single cloud provider, believe that will be the most seamless and secure approach.
Due to the size and security requirements of the JEDI contract, Amazon is considered by many to be the leader. When the award fell into the hands of Microsoft, Amazon sued to block the contract, arguing that Microsoft did not have the technical ability to meet the needs of the military and that the process favored Amazon because of the constant criticism. Mr. Trump’s to Mr. Bezos, who also owns The Washington Post.
“For Microsoft, this has gone from a lottery deal to a courtroom nightmare,” said Daniel Ives, managing director of equity research at Wedbush Securities. Microsoft argued that Amazon’s biased claims lacked evidence and that it was prepared to provide the necessary technology to the military, while the Defense Department argued that Trump played no role in the decision.
The Washington Post strongly covers the Trump administration, and Trump often calls the newspaper the “Amazon Washington Post” and accuses it of spreading “fake news.” He also said companies outside of Amazon should be considered for the JEDI contract, and Amazon alleges he used “inappropriate pressure” to sway the Pentagon when it selected a technology supplier.
In April, a federal court said it could not rule out that Mr. Trump interfered in the process. The court’s ruling set the stage for the Pentagon, which argued that extensive delays around the contract had raised national security concerns, to walk away from the contract.