Pentagon Chooses Microsoft over Amazon for a $10 billion Contract
Microsoft has been granted a cloud-computing offer by the U.S. Department of Defense (DOD) after an intense competition from Microsoft and Amazon for the contract.
The 10-years contract identified as Joint Enterprise Defense Infrastructure (Jedi) worths $10 billion (N3.6 trillion). It is a U.S. Defense initiative to improve its engineering and technological capabilities.
At first, Amazon was deemed the choice, given its domination of the cloud computing industry in 2018. Amazon holds approximately 47.8% of market share centered on revenue derived from Infrastructure as a service (IaaS). Though followed by Microsoft, Bill Gate’s technology company only managed to seized 15.5% of the market share.
Claims exist that Amazon is the best company to secure the contract and that based on Trump’s involvement, Microsoft was selected.
As shown in a BBC report, Amazon was considered the candidate until U.S. president Donald J. Trump, began to question if the system was fair.
In a statement that confirmed that Microsoft was the nominee, the Pentagon stressed its belief that the contest had been conducted reasonably and lawfully.
“All (offers) were treated fairly and assessed in accordance with the stated evaluation criteria of the solicitation. The department conferred with the DOD Inspector General before the award, who informed the decision to proceed, “he said.
27 October 2019