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HomeMarketAmazon, Microsoft, Google, Oracle to Share $9B Pentagon Cloud Computing Contract

Amazon, Microsoft, Google, Oracle to Share $9B Pentagon Cloud Computing Contract

Amazon claimed it didn’t get the original contract because the Trump administration was upset by coverage by the Washington Post, owned by Amazon founder Jeff Bezos.

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Getty Images for Bezos Earth Fund

The Pentagon has issued contracts worth up to $9 billion to the four largest U.S. cloud computing companies–
Amazon,

Microsoft,

Alphabet
and
Oracle
–for a cloud computing project called the Joint Warfighting Cloud Capability. The work will run through June 2028.

Announced last year, the cloud project replaced the Defense Department’s controversial JEDI project–the acronym stood for Joint Enterprise Defense Infrastructure. 

The $10 billion JEDI contract was issued solely to Microsoft (ticker: MSFT) in 2019. But the JEDI award was canceled in 2021 in the the face of sharp objections from Amazon (AMZN), which asserted that Microsoft (MSFT) had received the contract under political pressure from former president Donald Trump, who often was unhappy with coverage of his administration by the Washington Post, owned by Amazon founder Jeff Bezos.

After canceling JEDI and launching the Joint Warfighting Cloud Capability project, the government said it believed that only Amazon and Microsoft appeared capable of meeting the DoD’s requirements–but the actual contracts also include two additional cloud vendors, Oracle (ORCL) and the Google Cloud unit of Alphabet (GOOGL).

It isn’t clear from the announcements whether each company will participate equally in the project. The government said funds will be committed from the project as individual orders are issued. 

“The purpose of this contract is to provide the Department of Defense with enterprise-wide, globally available cloud services across all security domains and classification levels, from the strategic level to the tactical edge,” the Pentagon said in identical language in all four awards. “The Joint Warfighting Cloud Capability will allow mission owners to acquire authorized commercial cloud offerings directly from the Cloud Service Providers contract awardees.”

Shares of all four companies are up slightly in late trading.

Write to Eric J. Savitz at eric.savitz@barrons.com

Credit: marketwatch.com

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