Pentagon splits up revamped $9 billion cloud deal among tech giants
Splits defence infrastructure between four providers
The US Department of Defense (DoD) has decided to split its lucrative Joint Warfighting Cloud Capability (JWCC) contract between Google, Oracle, Amazon, and Microsoft.
The DoD said the contracts, which are valid until 2028, may be worth up to $9 billion.
The JWCC's outcome is consistent with the DoD's recent decision to use multiple providers for its infrastructure technology, rather than a single company.
When the Pentagon awarded Microsoft the $10 billion Joint Enterprise Defense Infrastructure (JEDI) contract in 2019, Amazon - the industry leader in cloud infrastructure - filed a lawsuit to overturn the choice.
Prior to this, IBM and Oracle were disqualified from the original bidding process, causing Oracle to file a lawsuit alleging bias. Google was also considered, but withdrew its name after staff protests (the company removed "Don't be evil" from its founding principles the same year).
Amazon claimed in court that the Trump administration awarded the contract to Microsoft unfairly, due to political bias. A review by the Pentagon's watchdog in 2020 found no evidence to support that allegation, and the DoD confirmed it would pursue the contract with Microsoft.
Last year, in a change of tune, the Pentagon reversed its decision and said it would not proceed with the Microsoft contract, as it was developed at a time when the Department's requirements were different and 'our cloud conversancy less mature.' The JWCC services as JEDI's replacement.
The DoD requested proposals for cloud solutions from Amazon, Google, Microsoft and Oracle, although at the time the General Services Administration said only Microsoft and Amazon seemed able to satisfy the Pentagon's requirements.
But, in an about-face from its earlier insistence on using a single provider, the Department has decided to follow through with all four vendors.
The DoD says the new contract will provide 'enterprise-wide, globally available cloud services across all security domains and classification levels, from the strategic level to the tactical edge.' It will enable individual DoD offices and programmes to buy commercial cloud services directly from all four providers.
The $9 billion in funds will be distributed 'on individual orders as they are issued.'
JWCC follows a rising trend that favours multiple suppliers over a single provider for government contracts.
The manner in which the companies will access the money is still unknown, as is the role that interoperability will play in the provision of security, updates, and features by as many as four distinct cloud platforms for a nation's defence infrastructure.