Amazon lost the JEDI contract, but experts say it remains cloud leader - Business Insider

Which makes it all the more noteworthy for Amazon. While it doesn't change the fact that Amazon still leads the market in terms of share, losing this deal is an unmistakable sign that"It's a black eye for Bezos and Amazon," Ives told Business Insider. "It's their first major setback for cloud in the last decade...Right now for them, it's a bit of a wake up call in how aggressive Microsoft has become in going after the cloud opportunity for the next five years.

Amazon has yet to say whether it plans to challenge the decision. A source familiar with the matter saidThe Pentagon may have selected Microsoft for JEDI, but experts say it's only the beginning of a new phase of the competition with Amazon Web Services. But with or without JEDI, analysts say that Amazon remains the leader in the cloud industry and will continue to stay successful in the government sector. What's more, there will still be plenty of opportunities to help the government move to the cloud in the next decade, and Amazon's offering there is as strong as ever.

Indeed, Amazon's clearances put it in a prime position if Microsoft for some reason cannot fulfill the contract's requirements, says Renee Murphy, principal analyst at Forrester. The minimum guarantee of the JEDI deal is that the DoD will pay $1 million to Microsoft over 2 years. The Department of Defense has the option to renew the contract three times and has said it will "rigorously review contract performance" before doing so. Should Microsoft be unable to step up, that leaves the door open for Amazon. As hinted at in Amazon's statement, politics, lawsuits, and President Donald Trump himself cast a long shadow over the JEDI deal.

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Why should we believe that contract process was handled appropriately under Trump?

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