Amazon files suit, challenging $10 billion cloud contract of Pentagon to Microsoft

Amazon files suit, challenging $10 billion cloud contract of Pentagon to Microsoft

Business

Amazon.com Inc. has filed a lawsuit by challenging the award of a $10 billion cloud contract of Pentagon to arch-rival Microsoft Corp., the latest twist in a months-long controversy over the coveted deal. The company Amazon, +0.63% filed the suit in the U.S. Court of Federal Claims, after a week it reported it would officially protest the decision of the government and suggested the deal for the joint Enterprise Defense Infrastructure project, that is known as JEDI. It was awarded based on political inspirations. The powerhouse Amazon Web Services has once reckoned a shoo-in for the deal, in part because it had built cloud services for the CIA, and it is the market leader.

Amazon spokesman Drew Herdener gave a statement last week by saying that it is critical for their country that the government and its elected leaders administer procurements objectively and in a manner that is free from any political influence. He also added that numerous aspects of the JEDI evaluation procedure hold apparent deficiencies, errors, and obvious bias, and it is essential that these matters be quired and rectified. Amazon refused further comment on Friday by pointing to its statement last week. A spokesman of Microsoft, which temporal the deal on 25th October, stated that they have confidence in the qualified staff at the Department of Defense, and they believe the facts will show that they ran a thorough, detailed. Fair procedure in ascertaining Microsoft best met the requirements of the warfighter.

The court challenge is the second concerning the controversial cloud contract, further delaying a technology program the Defense Department has called critical to its modernization. Oracle Corp. is also beseeching a July ruling from the U.S. Court of Federal Claims that cashiered its legal challenge to the cloud contract. JEDI was sucked into a political maelstrom, when President Donald Trump and Amazon chief executive Jeff Bezos questioned whether the deal was being competitively bid, quoting complaints from the Oracle, Microsoft, and International Business Machines Corp.

Arya Green

Arya, our senior correspondent for business updates, have worked in the industry for more than a decade as an executive and in other roles. Right now, she focuses on covering business updates that matter to not just the commons but also professionals like investors. She is a great lover of books and is planning on writing the ultimate guide on business analytics.

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