Pentagon Reboots $10B JEDI Cloud Contract, To Seek Proposals For Joint Warfighter Cloud Capability Contract: CNBC
The Department of Defense canceled the $10 billion cloud contract that triggered a legal fight between Amazon.com Inc (NASDAQ: AMZN) and Microsoft Corp (NASDAQ: MSFT), CNBC reports.
The DoD stated that the JEDI Cloud contract became irrelevant due to evolving requirements, increased cloud conversancy, and industry advances.
The DoD announced a new multi-vendor contract known as the Joint Warfighter Cloud Capability.
The agency plans to seek proposals from Amazon and Microsoft as they were the only cloud service providers that can meet its needs. Additionally, it will remain open to alternative options.
Microsoft won the cloud computing contract in 2019, beating Amazon Web Services.
A month later, the AWS unit filed a lawsuit arguing President Donald Trump’s bias against Amazon and its CEO, Jeff Bezos, influencing the decision.
Last year, the Pentagon’s inspector general’s report denied the allegations.
However, the inspector general could not complete the assessment due to limited cooperation from White House officials.
Price action: MSFT shares traded lower by 0.21% at $277.05 on the last check Tuesday.
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