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Pentagon awards $10B JEDI cloud contract to Microsoft over Amazon

Microsoft has emerged victorious in a dramatic competition for public cloud resources for the U.S. Defense Department, beating out market leader Amazon Web Services, the Pentagon said on Friday.

CNBC Jordan Novet

Discussion

  • @jonathanvswan Jonathan Swan on x
    As soon as Trump found out Bezos was in line for this payday, this seemed inevitable. Also - one of the most effective outside attack campaigns I've ever seen against Amazon. https://www.nytimes.com/...
  • @jackiegschneid Jacquelyn Schneider on x
    1) Culture. Microsoft has been a stalwart DoD partner since the the dawn of the Information Age. Almost every DoD mission runs on Microsoft applications. PowerPoint, excel, and outlook are probably the most prolific tech applications in modern combat.
  • @jackiegschneid Jacquelyn Schneider on x
    3) The tech. Azure is a good product and well poised for windows based systems/users. It offers perhaps greater potential for future hybrid cloud options.
  • @jackiegschneid Jacquelyn Schneider on x
    2). Culture (continued). Because of Microsoft's long history working w/DoD, it also means less potential of employee protests and more vetted personnel than other companies. That's huge for insider threats- arguably the greatest threat of a cloud strategy this centralized.
  • @jackiegschneid Jacquelyn Schneider on x
    A few thoughts on why the recent award to Microsoft is less surprising than it may seem at first. https://twitter.com/...
  • @elliotcwilliams Elliot Williams on x
    Squarely in the sweet spot of Congress's power to oversee how the executive branch spends taxpayer money. https://twitter.com/...
  • @renato_mariotti Renato Mariotti on x
    Congress should exercise its oversight power to review this process, which denied a major contract to Amazon. Trump has repeatedly attacked Amazon because its founder owns the Washington Post, and retaliation for speech would violate the First Amendment. https://www.nytimes.com/.…
  • @jimpethokoukis James Pethokoukis on x
    Maybe this a merit-based decision, but Trumpian crony capitalism means all decisions like this are under a cloud of suspicion https://twitter.com/...
  • @frankluntz Frank Luntz on x
    The US govt has awarded a $10 billion cloud contract to Microsoft. The contract will provide the Pentagon with cloud services for basic storage and power all the way up to AI processing, machine learning, and ability to process mission-critical workloads. https://www.theverge.com…
  • @joshk Josh Kopelman on x
    So @JeffBezos's true acquisition cost of the @washingtonpost was actually $10.25B not $250M. https://www.cnbc.com/...
  • @danlamothe Dan Lamothe on x
    In @GuySnodgrass's new book about the Mattis era at the Pentagon, he wrote that Trump wanted to “screw” Amazon out the $10 billion JEDI cloud-computing contract. On Friday night, Microsoft won that contract instead. via @Post_AG @greene https://www.washingtonpost.com/ ...
  • @dhh @dhh on x
    Maybe now it's a little clearer why @GitHub was so willing to flaunt their cognitive dissonance around the ICE deal? GH is now simply a pawn in Microsoft's long game. Eschewing its values is a small price to pay to stay good with a regime offering $10b prizes. https://twitter.com…
  • @byjacobward Jacob Ward on x
    Wow, the $10B pentagon cloud contract goes to Microsoft. Many had assumed Amazon would get it. At a dinner with dozens of CTOs once several of them told me it was such a huge and fraught and complex contract they wouldn't even WANT to win it. https://www.defense.gov/...
  • @normative Julian Sanchez on x
    As I noted the other day, this is exactly how Mexico's PRI controlled the press during the long era of one-party rule; less through explicit censorship than use of public funds to reward compliant papers, and punish ones that published negative coverage or exposed corruption.
  • @normative Julian Sanchez on x
    If this was the result of Trump's intervention—and we know be DID explicitly intervene—it's at least as bad as Ukraine. It's not $400 million but $10 billion in taxpayer funds held hostage to punish a newspaper's exercise of core First Amendment rights. https://www.nytimes.com/..…
  • @normative Julian Sanchez on x
    Again, if this is the result of Trump's directive to “screw Amazon” in procurement & there are no consequences, how many billions do we think the parent companies of media outlets are going to be willing to lose before they start ordering changes in coverage to appease Trump?
  • @whatthebit Stefan Constantine on x
    Reminder to all the $AMZN shareholders that are furious right now: Amazon's AWS business had $9 billion in sales in Q3 2019. $MSFT just won a contract that's worth $10 billion over one decade. pic.twitter.com/gbsKvlXjYy
  • @daverog Dave Rogers on x
    Regardless of which supplier you go with, there's no good reason to tie yourself into a contract this big for technology. It'll warp the ability to make sensible tech decisions for years. Probably won't work out well for both parties. https://twitter.com/...
  • @tenfinney Scott Stevenson on x
    Microsoft Corporation has been awarded a firm-fixed-price, indefinite-delivery/indefinite- quantity contract with a ceiling value of $10,000,000,000 over a period of 10 years, if all options are exercised. @Azure @Microsoft @Chainlink https://twitter.com/...
  • @foolmcochrane Matthew Cochrane on x
    Huge win for Microsoft. And it's not just $10B over 10 years, but could put them in pole position for several more large government contracts. Long $MSFT https://www.wired.com/...
  • @nxthompson Nicholas Thompson on x
    The giant tech company most immune to recent tech-industry turmoil just won a $10b Pentagon contract. https://www.wired.com/...
  • @wired @wired on x
    The Department of Defense has awarded Microsoft the $10 billion Joint Enterprise Defense Infrastructure contract known as JEDI. The Pentagon says the contract will be crucial to modernizing its use of technology—and making the US military more deadly https://www.wired.com/...
  • @lavendernred Morgan Art-boo-khina on x
    Tech giants like @Microsoft are little more than extensions of the US state. It didn't matter if them or @Amazon got the #JEDI contract, the Pentagon gets #CloudComputing from a corporate firm that owns our private info & that's terrifying. https://www.reuters.com/...
  • @findingveracity @findingveracity on x
    NYT Pentagon awards $10bil cloud-computing contract to Microsoft, despite Amazon's advantages, incl CIA, large-scale experience. Amazon is a frequent target for Trump criticism, identifying this contract for his review https://www.nytimes.com/... #FBRParty #BlueWave2020 #RESISTA…
  • @johnhcook John Cook on x
    Amazon ‘surprised’ after Pentagon awards coveted $10 billion JEDI cloud contract to rival Microsoft https://www.geekwire.com/... via @GeekWire tip @techmeme
  • @krishnan Krish Subramanian on x
    Already Microsoft was closing in on AWS in the cloud market. There will definitely be a cascading effect due to JEDI contract. I wouldn't be surprised if Microsoft is the leading cloud vendor by 2020
  • @lsobrado Leonardo Sobrado on x
    It is going to be easy to spot Softies from Amazonians this weekend at the Seattle waterfront. Look for the grin vs the frown.
  • @stillgray Ian Miles Cheong on x
    Mixer beat Twitch after all. https://twitter.com/...
  • @marcusreports Marcus Weisgerber on x
    @Microsoft Here's a link to the contract award https://www.defense.gov/...
  • @rebeccamkern Rebecca Kern on x
    Check out @nsnix87's coverage of @amazon falling out of favor with the Trump administration, which seems to have led to @Microsoft winning the $10 bill #Jedi contract https://www.bloomberg.com/...
  • @ewerickson Erick Erickson on x
    A wise decision. https://www.wsj.com/...
  • @emilyleldridge Emily Holdman on x
    Wow. JEDI going to Microsoft when the RFP was supposedly written to specs only AWS could deliver. pic.twitter.com/rBrMKboPOJ
  • @modestproposal1 Modest Proposal on x
    Is it gonna be “Empire Strikes Back” “Cloud Wars” or “Returns on the JEDI” in Microsoft sell side reports on Monday?
  • @lydiadepillis Lydia DePillis on x
    Oh my. JEDI goes to Microsoft over Amazon. But I doubt this is over, folks. You can dispute contracts for a long time, and Bezos isn't letting this one go without a fight. https://www.nytimes.com/...
  • @file411 @file411 on x
    @ericgarland Holy Unicorn Farts...Amazon is going to lose its ever loving MIND - which now make me want to reread the District Court's previous ruling against SAP, Oracle and I -think- Microsoft all of whom disputed the DOD contract award... https://www.washingtonpost.com/ ...
  • @ecmclaughlin Elizabeth C. McLaughlin on x
    Say what you will about Amazon, but the President's personal vendettas shouldn't control how these contracts are awarded. Period. https://www.washingtonpost.com/ ...
  • @stevekovach Steve Kovach on x
    Rough day for Amazon https://twitter.com/...
  • @jaketapper Jake Tapper on x
    Trump called Mattis in summer 2018 and directed him to “screw Amazon” out of $10 billion cloud contract. “Relaying the story to us during Small Group, Mattis said, 'We're not going to do that. This will be done by the book, both legally and ethically.” https://taskandpurpose.com/…
  • @gtconway3d George Conway on x
    This is impeachable. https://twitter.com/...
  • @levie Aaron Levie on x
    Cloud computing. Government procurement conspiracies. Revenge. For all of us in enterprise software, this is about as exciting as it gets. https://twitter.com/...
  • @lamhua LM Hua on x
    Rebondissement dans le contrat Pentagone / Microsoft : la candidature d'Amazon aurait été dégagée en 2018 par l'ex secrétaire à La Défense Matthias, sur ordre de Trump qui déteste Jeff Bezos et son Washington Post... https://twitter.com/...
  • @jdawsey1 Josh Dawsey on x
    In new book, top Mattis aide said the defense secretary said he'd rather “swallow acid” than see Trump's military parade, that Trump wanted to “screw” Amazon and that POTUS asked who really cared about Afghanistan. https://www.washingtonpost.com/ ...
  • @nycjim Jim Roberts on x
    Trump reportedly told former DefSec Mattis that he wanted to “screw” Amazon by denying huge Pentagon cloud computing contract, and that appears to be exactly what happened Friday night. https://www.politico.com/...
  • @maxboot Max Boot on x
    Mattis's speechwriter says that Trump made clear his intention to “screw” Amazon by denying it the Pentagon contract. The decision to give the business to Microsoft—which has less experience than Amazon in handling classified data—reeks to high heaven. https://wapo.st/2JoIDqc
  • @mikeelgan Mike Elgan on x
    Just to be clear: It appears that our corrupt president meddled in a military contract to punish the owner of a newspaper that criticized him and reported on his criminality and incompetence. Trump places his own, personal interest over national security. https://www.businessinsi…