Judge delivered a 'gut punch' to Microsoft in JEDI dispute: Analyst - Business Insider

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A judge just delivered a 'gut punch' to Microsoft in Amazon's lawsuit over the Pentagon's $10 billion JEDI cloud contract, an analyst says

, revealed the reason she granted a preliminary injunction is because she believes Amazon will likely be successful in proving the Department of Defense made an error in evaluating an aspect of Microsoft's proposal and that the error affected the outcome.

"This news from the courts is clearly a gut punch to MSFT which was hoping to navigate this trial with a victory and resume work on JEDI in the spring," Ives, who is typically bullish on Microsoft, said in an email to Business Insider. "Clearly this Amazon vs. MSFT battle on JEDIgate appear heading down a contentious path as the Pentagon's decisions are scrutinized. While we still believe this deal is MSFT's to lose, comments about 'the error' was a clear initial win for Amazon in this trial," he said.

In an email to Business Insider on Monday, Microsoft said the judge focused on one small aspect of the JEDI contract, that it does not believe the DOD made an error and that the agency carefully evaluated the proposal based on many factors and selected Microsoft's as "significantly superior." Microsoft spokesperson Frank Shaw said in a statement said Microsoft needs to begin work on the contract urgently. "Time matters because those who serve our country urgently need access to this essential modern technology," he said.

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