Google, Oracle, Amazon and Microsoft share $9 billion DoD cloud contract

Pentagon

Phoenix Net Technology News Beijing time on December 8th, the U.S. Department of Defense announced on Wednesday that Google, Microsoft, Amazon and Oracle have each won a cloud computing contract of up to $9 billion by 2028. In this way, the four giants have won a total of 36 billion US dollars (about 251 billion yuan) of cloud computing orders.

These contracts are the results of the competition of the US Department of Defense’s “Joint Warfare Cloud Capabilities” (JWCC) project, which is in line with the strategy of the US Department of Defense. The Pentagon wants multiple vendors to provide remote operations infrastructure technology, rather than relying on one as it did during the Trump administration.

All four tech companies have been awarded Indefinite Delivery/Indeterminate Quantity (IDIQ) contracts from the DoD, meaning they can deliver an indeterminate quantity of services for a specific period of time. “The purpose of this contract is to provide the Department of Defense with enterprise-class, globally available cloud services across all security domains and classification levels, from strategic to tactical advantages,” the Pentagon said.

Wednesday’s results were especially favorable for Oracle. In the eyes of analysts, Oracle is not a first-tier cloud computing service provider. Oracle’s cloud infrastructure revenue was just $900 million in the quarter ended Aug. 31, a paltry figure compared with Amazon Web Services’ $20.5 billion in revenue.

In 2019, the U.S. Department of Defense awarded a $10 billion cloud contract, then called Joint Enterprise Defense Infrastructure (JEDI), to Microsoft alone. That sparked displeasure with top cloud computing company Amazon, which filed a lawsuit against the court, claiming that Microsoft’s winning bid was the result of Trump’s political interference. Last year, the U.S. Department of Defense issued JWCC bidding invitations to Amazon, Microsoft, Google, and Oracle to replace the previous JEDI, but the U.S. General Services Administration stated at the time that only Amazon and Microsoft seemed to be able to meet the requirements of the Department of Defense. (Author/Xiao Yu)

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