The Pentagon on Tuesday canceled a $10 billion cloud-computing contract awarded to Microsoft Corp. in 2019. The decision took place after several years of wrangling between the government and some of the biggest U.S. tech companies over the deal. Meanwhile, the Pentagon plans to divide the work between Microsoft and rival Amazon.com Inc. instead. The new cloud contract, named as the Joint Warfighter Cloud Capability, will be awarded to multiple vendors for a period of five years.
In a statement, the Defense Department said, "With the shifting technology environment, it has become clear that the JEDI Cloud contract, which has long been delayed, no longer meets the requirements to fill the DoD's capability gaps." Instead, the Pentagon announced plans for a "multi-vendor" project and said it "intends to seek proposals from a limited number of sources, namely Microsoft and Amazon Web Services."
Let us tell you that Amazon Web Services, a leading company providing cloud computing services, considered at the forefront of this deal with the Pentagon. Meanwhile, this contract awarded to Microsoft during the tenure of then-President Donald Trump, putting Amazon out of the race in 2019.
Recently, Microsoft has appointed its Indian-origin CEO Satya Nadella as the President of the company. Nadella, 53, will replace Thompson, who will continue his role as a chief independent director. Meanwhile, Nadella succeeded Steve Ballmer as the CEO of Microsoft in 2014. In addition, John W. Thompson unanimously elected as Chief Independent Director. He has played this role in the past from 2012 to 2014 as well.
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