(Bloomberg) The $10 billion JEDI cloud computing contract with Microsoft has been canceled, and the tech giant will be joined by Amazon.com in a new award.
The US Defense Department said on Tuesday that the JEDI Cloud contract awarded to Microsoft in 2019 no longer meets its capability gaps and mission needs.
Pentagon now plans a “multi-vendor” project and will seek proposals from Microsoft and Amazon, the two companies capable of meeting its requirements.
Amazon has positively received Pentagon’s verdict, saying that the award resulted from outside influence with no connection to government procurements.
Microsoft said it respects the decision of the Defense Department as it puts the security of the US ahead of any single contract.
The Defense Department is yet to determine the maximum award amount for the new cloud contract but is said to be in the billions of dollars.
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