Amazon may seek cloud rematch with Microsoft and the Pentagon


According to the information gathered, due to President Trump’s alleged actions and public comments, Amazon may challenge Microsoft the awarding of the JEDI (Joint Enterprise Defense Infrastructure) of Pentagon. The contract was awarded to Microsoft last Friday whereas, on the other hand, the stock price increased to a new level on Monday.

According to Task & Purpose, which is a website on military issues, the president directed James Mattis, the former Defence Secretary to “screw Amazon”. This story was reported by Task & Purpose in a new book called “Holding The Line: Trump’s Pentagon with Secretary Mattis” from Penguin Random House which is written by James Mattis and Guy Snodgrass, the Communication director.

President Trump has routinely criticized Amazon and Jeff Bezos, its owner as well as The Washington Post’s, which always has reported unfavorably about the Trump Administration. The Wall Street Journal reported last week that the subscription to the Post and The New York Times had been canceled by the White House informing not to renew the subscription to other government agencies.

Amazon Web Services (AWS) has been the leader in providing cloud computing services for a long time. It is expected by many to favorably win the contract of the Department of Defense as it is already providing the cloud computing services to the Central Intelligence Agency. Oracle and IBM have also bid for the settlement, says a report.

For tech companies, cloud computing is a closely fought and profitable sector. According to the last week’s report, AWS has made 9 billion dollars in sales in the previous quarter. A last month’s research says that AWS was worth 550 billion dollars and it is the fourth most valuable company after Microsoft, Apple and Alphabet in the world putting behind giant tech companies like Alibaba and Facebook.

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AWS offers its services to its government and private sector clients, which reports being 10,000 educational institutions and 5000 government agencies which contribute to its big sales. It is the first to achieve different levels of security and obtaining qualifications and getting leadership in government cloud contracts. In 2013, it received a contract to provide cloud service worth 600 million dollars.

But to maintain the dominance, one has to hang onto the government deals that Amazon failed to do with the Joint Enterprise Defense Infrastructure. Franklin Turner says that Microsoft should remain prepared for a near-term war here.