Embattled $10 billion JEDI cloud contract canceled by US Division of Protection


It wasn’t an excellent day for Microsoft Azure because the Division of Protection canceled its bitterly contested $10 billion JEDI contract. Amazon and Microsoft had fought for it.

Picture: Jean Lee/Shutterstock

What a day! No sooner had Amazon Web Services chief Andy Jassy taken over as Amazon’s CEO from founder Jeff Bezos than the information hit that the U.S. Division of Protection had canceled its $10 billion Joint Enterprise Protection Infrastructure (JEDI) cloud solicitation. Nonetheless, it was a worse day for Microsoft Azure. Microsoft had been the “winner” of the JEDI cloud contract

The DOD has introduced that “as a consequence of evolving necessities, elevated cloud conversancy and trade advances, the JEDI Cloud contract not meets its wants.” Sources in DOD circles added that the lengthy, bitter struggle between AWS and Microsoft over the contract had change into dearer and bother than it was price.

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As quickly as Microsoft received the contract in 2019—a lot to the shock of most individuals who’d assumed AWS was a shoo-in—AWS sued the DOD for awarding JEDI to Microsoft as a result of “Numerous aspects of the JEDI evaluation process contained clear deficiencies, errors and unmistakable bias—and it is necessary that these issues be examined and rectified.”

Later, AWS added that then-President Donald Trump had unfairly influenced the contract award. Trump hated Amazon and Bezos. Trump had brazenly disdained Amazon and Bezos, who additionally owns The Washington Publish. This made it troublesome for the Pentagon to make selections “with out worry of reprisal,” AWS claimed. 

The purpose of JEDI was to improve legacy DOD methods with newer cloud companies. Particularly, the JEDI Cloud was to offer “enterprise-level, business Infrastructure as a Service and Platform as a Service cloud choices to the DOD and its mission companions.”

Regardless of the lawsuit, in September 2020, the DOD announced it would stick to its guns and award the JEDI contract to Microsoft. AWS responded by calling the DOD decision “politically corrupted” by Trump. The ensuing authorized battle slowed the contract right down to a snail’s tempo. 

Such battles over federal contracts, whether or not they’re large like JEDI or tiny sub-million greenback offers, are commonplace. They’re half and parcel of how federal IT offers are made. 

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Nonetheless, on this go-around, John Sherman, performing DOD chief data officer, mentioned in a press release, “JEDI was developed at a time when the Division’s wants have been totally different and each the CSPs [Cloud Service Providers] know-how and our cloud conversancy was much less mature. In gentle of latest initiatives…  the evolution of the cloud ecosystem inside DOD, and modifications in consumer necessities to leverage a number of cloud environments to execute mission, our panorama has superior and a brand new way-ahead is warranted to realize dominance in each conventional and non-traditional warfighting domains.” 

Microsoft made the very best it might of the information saying “the security of the United States is more important than any single contract.” However, they weren’t pleased about it. Toni Townes-Whitley, Microsoft’s president of the U.S. Regulated Industries division, wrote: 

“The 20 months since DOD chosen Microsoft as its JEDI accomplice highlights points that warrant the eye of policymakers: when one firm can delay, for years, vital know-how upgrades for individuals who defend our nation, the protest course of wants reform.  Amazon filed its protest in November 2019, and its case was anticipated to take a minimum of one other yr to litigate and yield a choice, with potential appeals afterward.”

Amazon, after all, sees it totally in a different way. In accordance with an AWS spokesperson, that “We perceive and agree with the DOD’s resolution.” Nonetheless, “The contract award was not primarily based on the deserves of the proposals and as a substitute was the results of outdoors affect that has no place in authorities procurement. Our dedication to supporting our nation’s navy and making certain that our warfighters and protection companions have entry to the very best know-how at the very best worth is stronger than ever. We sit up for persevering with to help the DOD’s modernization efforts and constructing options that assist accomplish their vital missions.” 

Wanting forward, the DOD admits that it’ll want extra cloud capability than it has. To handle these wants, it is pursuing one more cloud contract: The much less Star Wars-named, Joint Warfighter Cloud Functionality (JWCC) as a multicloud/multi-vendor contract. 

However, the company contract battles aren’t over but. The DOD announced that it would be seeking cloud proposals from only two companies. The companies? Microsoft and AWS. The enjoyable simply does not cease! 

The DOD claims that “market analysis signifies that these two distributors are the one CSPs able to assembly the Division’s necessities.” Google, IBM and Oracle all might have one thing to say about that assumption.

John Sherman, DOD performing CIO mentioned he expects JWCC contracts to be awarded in early 2022, and deployments to be rolled out in 2025. As a former Beltway Bandit, I totally count on way more years will go by earlier than JWCC contracts are awarded and efficiently deployed.

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