Microsoft has won the Joint Enterprise Defense Infrastructure, better known as JEDI, contract. The announcement was made on Friday by the Department of Defense. The contract is expected to be worth USD 10 and some of the world’s largest technology companies like Google, Oracle, IBM, and Amazon were eyeing for it. JEDI, a large United States Department of Defense cloud computing contract, will run for up to 10 years. Amazon Web Services was considered to be the front runner to win the deal because it not only dominates the cloud computing market but already had major government contracts like with the CIA. But in a surprise move, Microsoft emerged victories. Soon after the announcement was made, the impact was visible on the stocks of both the companies.
While Microsoft stock rose around 3 per cent, the Amazon stock saw a dip of around 1 per cent. “We are surprised with the result,” Amazon said in the statement and added the company will ‘remain deeply committed to innovate for the new digital battlefield’. The project saw a fair amount of controversy with tech giants like IBM and Oracle both lodging formal protests and even alleging that the proposal for JEDI was designed with one company in mind i.e. Amazon. However, the latest development highlights the emergence of Microsoft’s Azure cloud which is giving tough competition to Amazon Web Services. This is in a way victory for Satya Nadella also, who became chief executive officer of Microsoft in 2014 by replacing Steve Ballmer. The Washington based company has also won major cloud-infrastructure contracts from companies like Walmart.
Earlier in July, President Donald Trump said he was looking at the contract after companies had lodged their protest against the bidding process. It is also a well known fact that Trump has always been critical of Amazon CEO Jeff Bezos, though he has refrained from taking the name of the billionaire executive. The US president regularly criticise The Washington Post, newspaper owned by Bezos. He nicknamed it the “Amazon Washington Post” and even accused it of peddling fake news. Trump also claiming that Amazon does not pay its fair share of taxes.