Amazon is disputing Pentagon's decision to offer $10 billion contract to Microsoft

nanoguy

TS Addict
Staff member

Last month, the Pentagon decided to award its high-profile, JEDI cloud computing contract to Microsoft, which surprised many as Amazon was well-positioned to win. The deal will have Microsoft help the Department of Defense upgrade its aging computer infrastructure with a cloud-based solution.

While the Redmond giant doesn't seem like a bad choice considering the company has been primarily focused on the cloud for the last few years and has a lot of talented cloud engineers working on its Azure service.

Amazon says it plans to challenge the government's decision in federal court, alleging the contract has been awarded to Microsoft as a result of political bias. A spokesperson said in a statement that Amazon is "uniquely experienced and qualified to provide the critical technology the US military needs, and remains committed to supporting the DoD's modernization efforts."

The Department of Defense investigated the possibility of a conflict of interest but eventually settled on the same conclusion -- that Microsoft was more qualified than Amazon for the job. But the latter is convinced the JEDI evaluation process "contained clear deficiencies, errors, and unmistakable bias."

Amazon had been hiring tens of thousands of people in Washington as part of a strategic expansion that was meant to tackle government business. The company also leads the pack in terms of cloud computing, owning almost half of the entire market if you go by Gartner's numbers. That said, it has yet to dabble in cloud gaming services despite obvious signs that it plans to do so.

Oracle also wanted to get its hands on the JEDI contract but was ruled out early in the bidding process. The company has a solid partnership with Microsoft where the two linked their cloud services together.

Analyst say Microsoft managed to get the contract because it stayed out of politics and focused on aligning technology with the needs of its customer base. The Redmond giant earns one third of its total revenue from cloud services. By comparison, Amazon's cloud business brought in just $9 billion of the total $70 billion in revenue last quarter.

In a recent interview with GeekWire, Microsoft CEO Satya Nadella noted "we don’t celebrate the awarding of a contract for us. We want to stay focused on, in this case, on the Department of Defense, their mission and how we support them. I feel good about the fact that we were able to submit our proposal to their RFP and come out on the top. But this is just the start, and we now are very, very focused on ensuring that we meet their needs."

In any case, Amazon has bigger things to worry about, such as being under the watchful eye of Congress, who wants to get a clear idea of how the company was able to reach its dominance in online retail and cloud services.

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Uncle Al

TS Evangelist
Most military and governmental contract awards are challenged and while it sounds good, it isn't very often that the award is overturned. Hopefully this will again be the case particularly with Amazon being much less stellar and let's face it, Microsoft was just recognized for being a 1st rate company while Amazon didn't even make it into the top 10 ...... LOL
 
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psycros

TS Evangelist
This is all quid pro quo for Microsoft going above and beyond in making their user's private data available to government snoops in real time.
 
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captaincranky

TechSpot Addict
Oddly, as Amazon's principle business is in etail, I'm wondering why Walmart didn't bid on this contract as well.

Since M$'s principle business is spyware, (Window's 10), they're intimately more qualified.

Unless of course, it is our government's intention to flood the Russian military's internet with advertisements, then Amazon should have gotten the nod. :rolleyes:
 
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Yynxs

TS Addict
Tin hat time: I wonder if there are Shadow Government contract evaluators wanting to make sure Seattle's large resident Antifa population can get a job? Especially since the Millies like to film, brag, and post. Sentiment is turning a bit against violence in the city and blocking old lady's on walkers from crossing the street.
 

MikeAcker

TS Enthusiast
The contract should go to IBM/RHEL with the stipulation that Linux OS be used. This would help put Linux more into the mainstream and help us to rid ourselves of the defect plagued MSFT/Windows.
 

urbanman2004

TS Booster
Most military and governmental contract awards are challenged and while it sounds good, it isn't very often that the award is overturned. Hopefully this will again be the case particularly with Amazon being much less stellar and let's face it, Microsoft was just recognized for being a 1st rate company while Amazon didn't even make it into the top 10 ...... LOL
Correction: Microsoft was recognized as the most ethical company, not "1st rate".
 

urbanman2004

TS Booster
Amazon, you're better off hanging it up while you're ahead: you win some, you lose some. W/ all that money Amazon has, they got enough for R&D to make same spanking new trendy product to recoup from this supposed deficit. Even if the DoD chosen M$ based on political reasons, Amazon can't prove it, and by going against the gov't in this manner it won't end well. Plus, Trump despises Bezos anyway and will do everything in his power to ensure the final decision remains unchanged.
 

That Dude There

TS Booster
Illuminati companies fight over contracts. Bill Gates dad did some dark stuff for the CIA, which got him the majority of the PC market in the 80s.
 

GirlDownunder

TS Booster
"Amazon", IS Jeff Bezos.

When you start putting his actual name on this, it's indefensible. Mr. "worth 160 BILLION" Bezos is crying!

F-off, Bezos. Start donating to charity & the environment, as if you're grateful, you d*ckhead.