Microsoft loss of $10 billion defense(JEDI) Cloud contract ;It maybe Amazon’s gain

The IT Major Microsoft loses the Joint Enterprise Defense Infrastructure, or JEDI project worth $10 billion. The project began as an initial step in a deal spanning ten years that could have reached $10 billion in value. In October 2019, the U.S. Defense Department, known as DoD, gave a controversial contract to Microsoft. The Windows-maker would set up large cloud-computing systems for the Pentagon as part of the JEDI project.

Amazon Inc has disputed the contract stating that the Pentagon unfairly evaluated its cloud service and Microsoft’s proposals. It also added that former U.S. President Donald Trump’s criticism of Amazon and its founder Jeff Bezos had influenced Pentagon’s decision. Trump had earlier criticized Bezos for coverage of his administration in the Bezos-owned Washington Post.

Due to conflict of interest Allegations and legal challenges faced by Pentagon and Microsoft, the Pentagon, in its January statement, said that despite JEDI Cloud litigation outcome, the Department [DoD] continues to have an urgent, unmet requirement for enterprise-wide, commercial cloud service.

After Amazon’s bid to claw back the JEDI deal, a U.S. Federal Claims Judge named Patricia Campbell-Smith rejected motions by the DoD and Microsoft to dismiss Amazon’s challenge of the contract award. After this improvement. The DoD said it would review the project. Many lawmaking experts suggested the Pentagon adopt a multi-vendor approach for large cloud-computing contracts as it would reduce the risk of litigation from excluded firms.

The DoD, as part of putting matters to rest, said on July 6, 2021, said it had canceled the JEDI project citing evolving requirements, increased cloud conversancy, and industry advances. It added that it continues to have unmet needs and demands in cloud computing and is looking to fill the gaps at scale.

John Sherman, acting DoD Chief Information Officer, said that a Joint Warfighter Cloud Capability project will replace JEDI and that both Amazon and Microsoft are “likely” to be awarded contracts. He also noted that Tech giants including IBM, Oracle, and Google could also qualify under the new project.