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Technology Amazon files suit protesting Microsoft's JEDI cloud contract with Pentagon

02:45  23 november  2019
02:45  23 november  2019 Source:   cnbc.com

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Amazon Web Services on Friday filed suit in protest of a major contract that Microsoft won to provide cloud services to the U. S . Defense Department. The Pentagon announced that Microsoft had won the contract on October 25. Soon after, Amazon said it was surprised that Microsoft had

SAN FRANCISCO — The Department of Defense on Friday awarded a billion technology contract to Microsoft over Amazon in a contest that was closely watched after President Trump ramped up his criticism of Amazon ’ s founder, Jeff Bezos, and said he might intervene.

Jeff Bezos wearing a suit and tie: Jeff Bezos, CEO, Amazon© Provided by CNBC LLC Jeff Bezos, CEO, Amazon

Amazon Web Services on Friday confirmed that it has filed a lawsuit challenging the Defense Department's decision to award Microsoft a major contract for cloud services.

The JEDI (Joint Enterprise Defense Infrastructure) deal, which could be worth up to $10 billion, was hotly contested and marks a big win Microsoft as it chases down AWS in cloud infrastructure.

The high-profile process was controversial because President Trump got personally involved, expressing opposition to awarding the contract to Amazon, whose CEO, Jeff Bezos, is a frequent target of Trump's attacks. Amazon has submitted several documents related to Trump to the Court of Federal Claims, which is handling the bid protest. The complaint itself is not publicly accessible.

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It’s a key contract for Microsoft as the company battles Amazon for cloud dominance, and for a Microsoft ’ s win over Amazon might not be a win for employees. President Trump even got involved Thousands of Google employees protested against the tech giant’s involvement in the Pentagon ’s

Dubbed JEDI for short, the Joint Enterprise Defense Infrastructure project has been in the works since November 2017, and sets out to revamp the Pentagon ’ s computer “This contract will address critical and urgent unmet warfighter requirements for modern cloud infrastructure,” the Pentagon said in a

"The Complaint and related filings contain source selection sensitive information, as well as AWS's proprietary information, trade secrets, and confidential financial information, the public release of which would cause either party severe competitive harm," Amazon told the court in a filing, while requesting for a protective order. "The record in this bid protest likely will contain similarly sensitive information."

The Pentagon announced that Microsoft had won the contract on October 25. Amazon announced plans to protest the award last week.

Follow @CNBCtech on Twitter for the latest tech industry news.

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