The Pentagon has decided to award its $10 billion cloud-computing contract to Microsoft instead of Amazon, despite the latter being favored to win out over its competitors. This project, dubbed the Joint Enterprise Defense Infrastructure (or JEDI for short), will require the contracted company to help the Department of Defense replace its existing computer infrastructure with one unified cloud-based solution.
With Microsoft's experience in this area (primarily through its Azure service), the company is far from a terrible choice. However, Amazon is certainly disappointed and feels it should have won instead.
If a "detailed assessment" based "purely on the comparative offerings" were performed, a "different conclusion" would have been reached, according to the retail giant. The Department of Defense, for its part, says its selection process was without prejudice, and all competitors were treated fairly.
While Amazon isn't too pleased with this news, President Donald Trump probably is. It's no secret that the President is one of Amazon's main detractors, and he's expressed his concern with the company's bid for the JEDI contract in the past.
The contract is expected to run over the course of a full decade, so Microsoft's cloud engineers certainly won't be hurting for work in the coming years. It remains to be seen whether or not Amazon will challenge the Department of Defense's decision, but if they do, we'll let you know.