Microsoft Beats Out Amazon For $10 Billion Government Contract

Andrew Wagner

Microsoft won the competition with Amazon over the Defense Department's 10-year JEDI cloud computing project.

On Friday, the Department of Defense announced that its $10 billion technology contract was signed by Microsoft over Amazon, according to The New York Times.The contract is a necessity for The Pentagon in its attempt to modernize its technology. The defense department has spent billions of dollars on maintenance for their outdated technology, due to a lot of the military being operated with computers dating back to the 1980s and 1990s.

When negotiations for the contract were started more than a year ago, IBM, Oracle, and Google were also in the race with Amazon and Microsoft. Although, President Trump has criticized Amazon founder Jeff Bezos over his "fake news" outlets (Bezos owns the Washington Post) President Trump increased his criticism of Bezos when Amazon and Microsoft were battling for the contract, and stated that he might intervene.

Prior to Trump's criticism, Amazon was considered the front-runner because it had built cloud services for the Central Intelligence Agency (CIA). The federal government is expected to spend $40 billion on cloud computing in the coming years.

“The acquisition process was conducted in accordance with applicable laws and regulations,” the Defense Department said in a statement on Friday. “All offerors were treated fairly and evaluated consistently with the solicitation’s stated evaluation criteria.”

Microsoft won the $10 billion technology contract over Amazon on Friday.

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