Pentagon cancels $10 billion cloud contract given to Microsoft over Amazon

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The Department of Defense is canceling a controversial $10 billion cloud computing contract that had been awarded to Microsoft over Amazon under the Trump administration.

The department announced Tuesday that it is canceling the Joint Enterprise Defense Infrastructure contract that was previously awarded to Microsoft. It will instead seek new solicitations for an updated Joint Warfighting Cloud Capability contract from Amazon and Microsoft.

Amazon filed a suit with the US Court of Federal Claims contesting the decision, arguing that it was politically motivated by former President Donald Trump's dislike of then Amazon CEO Jeff Bezos and the Washington Post, which Bezos owns. The department will solicit proposals from Microsoft and Amazon Web Services and will also accept proposals from other Cloud Service Providers that"can also meet the DoD's requirements," the release said.

"Because the security of the United States through the provision of critical technology upgrades is more important that any single contract, we respect and accept DoD's decision to move forward on a different path to secure mission-critical technology," the statement adds. Amazon was widely believed to be the frontrunner to win the Pentagon contract before Trump vowed to take"a strong look" at the deal.

 

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