Pentagon splits $9 billion cloud contract among 4 companies

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Google, Oracle, Microsoft and Amazon will share in the Pentagon’s $9 billion contract to build its cloud computing network.

– Google, Oracle, Microsoft and Amazon will share in the Pentagon's $9 billion contract to build its cloud computing network, a year after accusations of politicization over the previously announced contract and a protracted legal battle resulted in the military starting over in its award process.

The contract will be awarded in parts, with a total estimated completion date of June 2028, the Pentagon said in a statement. “It’s the most important cloud deal to come out of the Beltway,” said analyst Daniel Ives, who monitors the cloud industry for Wedbush Securities. “It’s about the Pentagon as a reference customer. It says significant accolades about what they think about that vendor, and that’s the best reference customer you could have in that world.”

It did not mention the legal challenges behind those delays, which had come from Amazon, the losing bidder. Amazon had questioned whether former President Donald Trump's administration had steered the contract toward Microsoft due to Trump's adversarial relationship with Amazon's chief executive officer at the time, Jeff Bezos.

 

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