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Pentagon cancels $ 10 billion contract with Microsoft

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The US military has terminated a cloud computing contract with Microsoft. The $ 10 billion contract to create a single cloud for the American military vehicle – the Joint Enterprise Defense Infrastructure (JEDI) Cloud – and as part of a broader digital modernization program, went to Microsoft in October 2019. The Pentagon’s decision has been challenged by Amazon, which competes with Microsoft in the cloud computing market.

According to the military, “With the changing technology environment, it has become clear that the JEDI Cloud contract, which has been delayed for a long time, no longer meets the need to fill the capacity gaps of the Department of Defense.”

The Pentagon is currently planning a new Joint Warfighter Cloud Capability contract, which appears to be an attempt to appease both companies. It is believed likely to be concluded at the same time as Amazon and Microsoft, with the option of other major cloud providers including Google, IBM and Oracle. Unlike the original program, the new one is designed not for 10, but for 5 years. Its amount has not yet been announced, but we are talking about “billions of dollars”.

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