Tech Giants Break up $9 Billion Pentagon Cloud Contract
The Pentagon has awarded a high-profile cloud-computing contract price as much as $9 billion U.S. to know-how giants Amazon (AMZN), Google (GOOGL), Microsoft (MSFT) and Oracle (ORCL).
The 4 corporations will cut up the contract obligations and monetary funds, based on an announcement from the U.S. Protection Division.
The contract is for work growing the U.S. navy’s Joint Warfighting Cloud Functionality (JWCC).
Initially, the Pentagon had awarded the contract to Microsoft again in 2019. Nonetheless, a authorized battle ensued as Amazon, the highest participant within the cloud infrastructure market, challenged the Pentagon’s resolution. Oracle additionally challenged the Pentagon’s resolution in courtroom.
Final 12 months (2021), the Pentagon modified course, asking for bids from Amazon, Google, Microsoft, and Oracle to handle its cloud computing wants.
The brand new contract award is a possible bonanza for the tech corporations concerned, significantly Oracle, which is a burgeoning participant within the cloud computing area.
Oracle generated $900 million U.S. in cloud infrastructure income within the quarter that ended August 31 this 12 months, a small fraction of the $20.5 billion U.S. complete for Amazon Net Providers (AWS) in the identical time interval, based on business knowledge.
Expertise shares are down throughout the board this 12 months, with the tech-laden Nasdaq index having decreased 31% year-to-date and firmly in a bear market.
