No one if allowed to have a $10 billion cloud contract with the U.S. government. Microsoft Azure and Amazon Web Services (AWS) are the two biggest cloud providers. Last month, Amazon thwarted Microsoft's $10bn JEDI contract with the Pentagon following a year-long legal battle. Now, Microsoft is aiming to do the same with a $10bn deal AWS has struck with the National Security Agency (NSA).
Government agencies are increasingly trying to shift from their on-premises servers to cloud technology. This includes organizations like the Department of Defense and NSA, with cloud companies bidding for the controversial – but lucrative – contracts.
Washington Technology reports Amazon Web Services has won a $10 billion bidding war against Microsoft and other cloud vendors. Microsoft is not happy with the result and is filing a protest with the Government Accountability Office.
According to the report, Microsoft's contestation is the NSA did not go through a proper process of evaluation on the WildandStormy project. In other words, Microsoft believes AWS was chosen without other vendors being given a fir chance. Of course, by other vendors, the company means Azure.
In response the NSA says, “The Agency will respond to the protest in accordance with appropriate federal regulations.”
It is unclear how far Microsoft will or even can take this. When Amazon stood against the JEDI contract, the company was successful in getting a conjunction to stop Microsoft starting work on the project. Over a year of legal back and forth followed before courts voted in favor of Amazon.
Instead of opening another bidding process for the JEDI war cloud deal, the Pentagon simply cancelled it. According to the DoD, so much time had passed arguing about the project that cloud technology has moved on beyond the original scope. A new contract and project is expected to be created.
Microsoft will be looking to inflict a similar inconvenience and outcome on AWS regarding the NSA contract.
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