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Cloud computing: The Pentagon just split this giant deal between AWS, Google, Oracle, and Microsoft

Pentagon's $10 billion JEDI saga with Microsoft has ended in a $9 billion cloud deal with Google, Oracle, Microsoft, and AWS.
Written by Liam Tung, Contributing Writer on
Pentagon, U.S. Department of Defense
Image: Getty Images / iStockphoto

After canceling its $10bn JEDI contract with Microsoft last year, the Pentagon has now awarded a new $9bn contract to four tech giants that will build its cloud-computing network.

The contract, formerly named JEDI but now called the Joint Warfighting Cloud Capability (JWCC), has been awarded to Amazon Web Services, Google Support Services, Microsoft, and Oracle. 

The Department of Defense in 2019 awarded Microsoft the $10bn, 10-year JEDI contract to Microsoft but, following a lawsuit brought by AWS, the DoD terminated the JEDI with Microsoft contract in July 202. In November, the DoD asked AWS, Microsoft, Google and Oracle to bid for the new JWCC deal. 

SEE: What is cloud computing? Everything you need to know about the cloud explained

JWCC is a multiple-award contract vehicle under which the DoD can acquire commercial cloud capabilities and services directly from the winners "at the speed of mission, at all classification levels, from headquarters to the tactical edge", the Pentagon said in an announcement. That means it can contract services that provide military personal with access to unclassified, secret and top-secret data. 

DoD can choose services, such as elastic computing, storage, network infrastructure, advanced data analytics, fortified security, and tactical edge devices, the announcement said. According to the Associated Press, the Pentagon said the completion date of the contract will be June 2028.

With four vendors in place, the Pentagon has opted for a multi-cloud arrangement rather than placing its eggs all in one basket.

Commenting on the JWCC contract, an AWS spokesperson said: "We are honored to have been selected for the Joint Warfighting Cloud Capability contract and look forward to continuing our support for the Department of Defense. From the enterprise to the tactical edge, we are ready to deliver industry-leading cloud services to enable the DoD to achieve its critical mission."

In a blogpost, Microsoft Federal President Rick Wagner said: "With the announcement, Microsoft will help deliver mission-critical 21st century technology to our nation's service members and strengthen U.S. national security. The selection is another clear demonstration of the trust the DoD places in Microsoft and our technologies."

Ken Glueck, Executive Vice President at Oracle, said: "Oracle looks forward to continuing its long history of success with the Department of Defense by providing our highly performant, secure, and cost-effective cloud infrastructure. Built to enable interoperability, Oracle Cloud Infrastructure will help drive the DoD's multicloud innovation and ensure that our defense and intelligence communities have the best technology available to protect and preserve our national security."

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