Pentagon splits $9B cloud cope with Amazon, Google, Microsoft and Oracle


No Jedi thoughts methods concerned: The five-sided authorities entity selected 4 cloud suppliers because it ended its single-company JEDI contract with Microsoft.

US Pentagon aerial view
Picture: icholakov/Adobe Inventory

The U.S. Division of Protection will not be slowing down in committing substantial monetary funding to revamp its cloud providers throughout safety domains in any respect ranges.

There was some debate over which cloud supplier would greatest deal with the monetary investments in cloud providers for the Pentagon. This has generated a tussle amongst large cloud suppliers like Amazon, Microsoft, Google and Oracle. Lately, these hyper-scale cloud suppliers have all been caught up in attempting to outwrestle one another in a bid to strike a cloud cope with the Pentagon.

In what might come as a shock to many tech observers, the Pentagon has introduced that it has reached a $9 billion cloud computing cope with Amazon, Google, Microsoft and Oracle. The Pentagon says the deal offers it with “enterprise-wide globally obtainable cloud providers throughout all safety domains and classification ranges, from the strategic degree to the tactical edge.”

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The announcement is the end result of the Joint Warfighting Cloud Functionality effort with the  Protection Division to depend on multi-cloud provisions. The transfer is a complete departure from the single-company partnership witnessed underneath Trump’s administration, which noticed the Pentagon working solely with Microsoft.

Earlier than this announcement, in 2019, the Pentagon had awarded the Joint Enterprise Protection Infrastructure to Microsoft. The deal got here within the face of competitors from AWS and Oracle, elevating many eyebrows, and it was greeted with a lawsuit from Amazon and Oracle. Following steady litigation over the JEDI contract, the Pentagon determined to terminate the unique contract with Microsoft in 2021 and search for different methods to obtain cloud providers.

Why did the federal government terminate its JEDI contract?

In 2021, the Pentagon introduced the creation of the JWCC contract to switch the JEDI contract. The JWCC was meant to be a multi-vendor acquisition mannequin designed to make cloud providers and capabilities obtainable in any respect classification ranges and throughout all safety domains, from the enterprise to the tactical edge.

Again in July 2021, the Pentagon anticipated solely two cloud service suppliers to qualify to bid on the JWCC procurement deal. Nonetheless, after market analysis to find out which cloud service suppliers certified to obtain direct solicitations, 5 had been thought-about and 4 obtained the solicitations in November 2021. Because of this improvement, the Pentagon requested for bids from Amazon, Google, Microsoft and Oracle to deal with the Pentagon cloud wants.

Whereas the inclusion of AWS, Microsoft and Google on this deal could not increase quite a lot of mud amongst tech analysts, as they’re the main cloud infrastructure suppliers within the cloud market chain, the identical can’t be mentioned in regards to the inclusion of Oracle. A current Statista Q3 survey of cloud chief market shares revealed that Amazon, Microsoft and Google dominate the market: Amazon has a 34% market share, Microsoft 21%, Google 11% and Oracle 2%. With this report, it’s tough to level to the defining yardstick for measuring the suitability of every cloud supplier for the deal.

No matter every firm’s place within the cloud market, the Pentagon has made each considered one of them an equal participant on this cloud deal. All 4 firms have received indefinite supply, indefinite amount contracts, which means that they will contain an indefinite quantity of providers for a particular time frame. The estimated completion date for the contract is June 8, 2028.

May this be a deal breaker for multi-cloud proponents?

This deal might show that multi-cloud adoption is now a norm amongst enterprise organizations. In a current Deloitte U.S. Way forward for Cloud Survey Report, of the five hundred senior cloud decision-makers surveyed, 79% agreed that they like to work with a couple of cloud supplier. A lot of the leaders surveyed additionally acknowledged that it is not uncommon to accomplice with three or 4 cloud suppliers.

In response to a 2022 HashiCorp survey, 90% of organizations claimed success with their multi-cloud technique. As well as, the survey reported a number of the prime advantages of the multi-cloud strategy, which embody extra selection of providers, utility and information processing scalability, and extra flexibility in selecting the price of cloud service.

All these might inform the rationale behind the Pentagon’s resolution to undertake a multi-cloud strategy on this contract. Nonetheless, provided that this contract cuts throughout the Pentagon’s cloud providers safety domains, many would argue that this strategy might make the U.S. extra weak to cyberwarfare.

Talking of five-sided issues: Take a look at our prime 5 developments to observe in cloud computing. We have a look at edge enlargement, compliance, infrastructures, AI/ML and inexperienced initiatives.


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