The Department of Defense announced late on Friday it was going to award a $10 billion contract to Microsoft. Microsoft was not expected to win. Tech giant Amazon was favored, because of their previous infrastructure efforts for the CIA. However, many believe they were snuffed because of President Trump’s feelings about CEO Jeff Bezos.
The Joint Enterprise Defense Infrastructure Cloud (JEDI) contract set off a heated battle between many of the biggest names in technology. In addition to Amazon and Microsoft, IBM, Oracle, and Google parent Alphabet competed for the deal. After the initial review process, Amazon and Microsoft were picked to move on, as they are the only ones with the necessary cloud infrastructure.
The 10-year contract is part of a Pentagon efforts to modernize the military’s computing infrastructure, much of which is decades old, using computers from the 1980s and 1990s. The technology is highly inadequate in today’s technology driven environment, and the government is spending billions of dollars to update its older infrastructure and systems.