Pentagon building in Washington DC
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Pentagon said Wednesday Amazon, Google, microsoft When Oracle won cloud computing contracts worth $9 billion by 2028.
The outcome of the Joint Warfighting Cloud Capability (JWCC) effort is to rely on multiple providers of remotely operated infrastructure technology rather than relying on a single company, a strategy driven by the Trump administration. Consistent with the efforts of the US Department of Defense.
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“JWCC is a multi-award procurement consisting of four contracts with a shared cap of $9 billion,” a Pentagon spokesperson told CNBC in an email.
More and more businesses are looking to rely on multiple cloud providers. In some cases, they rely on one specialized feature and rely heavily on different front-end and back-end workloads. It can also be costly. Having multiple clouds gives organizations confidence that they can withstand service interruptions due to outages.
Originally, the Department of Defense awarded the Joint Enterprise Defense Infrastructure (JEDI) to Microsoft in 2019. Oracle also contested the Pentagon’s selection.
In 2020, the Pentagon’s Watchdog conducted a review and determined that there was no evidence to conclude that the Trump administration interfered in the process of awarding contracts. announced that it would stick to
Last year, the Department of Defense changed its approach, soliciting bids from Amazon, Google, Microsoft, and Oracle to address its cloud needs. But the General Services Administration said at the time that only Amazon and Microsoft could meet the Pentagon’s requirements.
Wednesday’s results are a particular boon for Oracle, which analysts say isn’t seen among top-tier companies that offer cloud-based computing services. Oracle generated $900 million in revenue from his cloud infrastructure in his August 31st quarter.
All four technology companies have indefinite delivery, indefinite quantity, or IDIQ contracts. This means that the service can be provided for a specified period of time, indefinitely.
“The purpose of this agreement is to provide the Department of Defense with globally available cloud services across the enterprise across all security domains and classification levels, from the strategic level to the tactical edge,” the Department of Defense said. .
Correction: A previous version of this article said each company had won contracts worth up to $9 billion, but this figure represents the four companies combined.
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