Brazilian government concludes cloud integration tender

Cloud offerings by Amazon Web Services, Huawei and Google form part of the winning bid for integration services.

The new integrator for cloud computing services for the Brazilian federal government has been chosen following a tendering process that involved 20 other companies.

Extreme Digital Solutions (EDS) presented the lowest bid of the tendering process, at 65.9 million reais ($12.3 million) for a two-year contract that encompasses the integration of cloud services for federal government bodies.

The EDS proposal, chosen over the bid by current cloud broker Claro-Embratel of 71.4 million reais ($13.3 million), includes the offer of services provided by Amazon Web Services (AWS), Huawei and Google - the request for proposals called for at least two cloud providers with datacenters located in Brazil.

This is the second tender launched by the Brazilian government for public cloud services after the first exercise concluded in 2018. The one-year contract won by Claro was worth 30 million reais ($5.6 million). Service provision went live in 2020 and catered for 26 federal government organizations.

Since the announcement of the winning bid in early April, the result has been contested by the other companies involved in the competitive process: Claro, Globalweb, AX4B and Telefônica. Among the claims presented by the companies, EDS arguably does not have the necessary capabilities or technical skills to provide the cloud services to the federal government. All claims have been refuted by the government, and the purchasing office of the Ministry of Economy has confirmed its decision on  Tuesday (27).

The cloud integration tender relates to the centralized approach the Brazilian government has adopted to its IT procurement in 2019 towards its aim to reduce 20% in all technology spend by 2022.

Earlier this year, the Brazilian government signed an agreement with the United Kingdom for the acceleration of digital transformation and innovation in public services. Under the partnership, aspects such as data governance and accessibility will be emphasized, as well as planning and implementation of digitization projects and knowledge sharing.