US Defense Dept cancels $10B JEDI contract with Microsoft

Author: Greg Michalowski | Category: News

Surprise move

The US Defense department is cancelling a $10B JEDI (Joint Enterprise Defense Infrastructure) contract awarded to Microsoft.  The Pentagon says that they seek a new multi-cloud , multi vendor contract.  

The Pentagon will seek proposals from both Amazon and Microsoft. 

They Defense Department said:
  • "Due to evolving requirements, increased cloud conversancy, and industry advances, the JEDI Cloud contract no longer meets its needs."

Amazon was contesting the contract award to Microsoft.  In May, US officials considered pulling the plug on the contract.  

It seems we are back to square one with regard to the contract. According to the Defense Department:

  • It still needs enterprise-scale cloud capability and announced a new multi-vendor contract known as the Joint Warfighter Cloud Capability.
Both Amazon and Microsoft are likely the favorites to be awarded the contract again (and could well be the only companies able to meet the requirements of the project).  The contract will not be awarded until April 2022.

You have to wonder if the original contract will sway opinion for the new contract? or visa versa?

MSFT is trading down -$1.75 at $275.80
AMZN has been surging all day and trades up $115.02 at $3614.51

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