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The Pentagon received a cloud deal from Google, Oracle, Amazon, and Microsoft totaling up to $9 billion

The Pentagon announced on Wednesday that Amazon, Google, Microsoft, and Oracle had been awarded a contract for cloud computing that could total as much as $9 billion by 2028.

The outcome of the Joint Warfighting Cloud Capability, or JWCC, an effort is in line with the strategy that the Trump administration advocated for the U.S. Defense Department to use multiple providers of remotely operated infrastructure technology rather than a single company.

By email, a spokesperson for the Department of Defense informed that “JWCC is a multiple award procurement composed of four contracts with a shared ceiling of $9 Billion.”

A growing number of businesses have also tried to use multiple cloud providers. In some instances, one relies on specialized capabilities, while the majority of front-end and back-end tasks are performed by another. Occasionally, it comes down to cost. Businesses may feel more confident in their ability to withstand service disruptions caused by outages if they have multiple clouds.

Microsoft had been selected by the Pentagon to receive the Joint Enterprise Defense Infrastructure, or JEDI, in 2019. As the dominant player in the cloud infrastructure market, Amazon, challenged the Pentagon’s decision, a legal battle ensued. Oracle also challenged the Pentagon’s selection.

In 2020, a review by the Pentagon’s watchdog concluded that there was no evidence to suggest that the Trump Administration had influenced the contract award process. The Pentagon announced months later that it would continue to work with Microsoft on the JEDI deal.

The Pentagon made a change last year and started soliciting bids from Amazon, Google, Microsoft, and Oracle to meet its cloud requirements. However, at the time, the General Services Administration stated that only Microsoft and Amazon appeared to be capable of meeting the Pentagon’s requirements.

Analysts don’t see Oracle among the top cloud computing service providers, so Wednesday’s result is especially good news for them. In the quarter that ended on August 31, Oracle made $900 million from cloud infrastructure. This was only a small portion of the $20.5 billion that Amazon’s cloud subsidiary, Amazon Web Services, made in the third quarter.

Every one of the four of the innovation organizations have won endless conveyance, endless amount, or IDIQ, contracts, implying that they can include an indefinite amount of services for a particular timeframe.

“The purpose of this contract is to provide the Department of Defense with enterprise-wide globally available cloud services across all security domains and classification levels, from the strategic level to the tactical edge,” the Defense Department said.

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