December 13, 2022: -On Wednesday, the Pentagon said that Amazon, Google and Microsoft had been awarded a cloud-computing contract reaching nearly $9 billion through 2028.
The result of the Joint Warfighting Cloud Capability is in line with the Defense Department’s effort to count on multiple providers of remote operating infrastructure technology, as opposed to depending on a single firm, a strategy promoted during the Trump Administration.
A Department of Defense spokesperson stated by email, “JWCC is a numerous award procurement comprised of four contracts with sharing ceiling of $9 Billion.”
An increasing tally of businesses has also sought to rely on over one cloud provider. Sometimes, they rely on specialized capabilities on one and most front-end and back-end workloads. Similarly, they come down to cost. Over one cloud might make industries more confident that they can stand service disruptions brought on by outages.
Initially, the Pentagon awarded the Joint Enterprise Defense Infrastructure to Microsoft in 2019. A legal fight ensued as Amazon, the top player in the shadow infrastructure market, challenged the Pentagon’s thing. Oracle challenged the Pentagon’s pick as well.
In 2020, the Pentagon’s watchdog is conducting a review and ruled that there was zero evidence concluding that the Trump Administration had intervened in awarding the contract. After many months, the Pentagon announced that it would stick with Microsoft for the deal.
The Pentagon changed its approach in the previous year, questioning bids from Amazon, Google, and Microsoft to address cloud money. But the General Services Administration stated that only Amazon and Microsoft seem to meet the Pentagon’s requirements.
The result is particularly a boon for Oracle, which analysts don’t see in the top tier of a firm offering cloud-based computing services. Oracle is generating $900 million in cloud infrastructure revenue that ended August 31, a fraction of the $20.5 billion completed for Amazon’s subsidiary, Amazon Web Services, in the third quarter.
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