Microsoft Beats Out Amazon for $10 Billion Pentagon Cloud Computing Contract

Computer giant Microsoft has beaten out retailer Amazon for the ten billion-dollar contract for the Pentagon’s new cloud computing system.

Microsoft was officially awarded the Pentagon’s JEDI contract beating out Amazon Web Services, according to CNBC.

Microsoft’s stock rose three percent on the news. Amazon’s sunk a tiny one percent at the same time.

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“The achievement highlights the emergence of Microsoft’s Azure cloud as a challenger to AWS and represents the latest victory for Satya Nadella, who took over from Steve Ballmer as Microsoft chief in 2014,” CNBC reported. “Microsoft has also won major cloud-infrastructure deals from companies like Walmart even as AWS has kept growing.”

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Industry insiders thought that Amazon was easily on track to winning the contract. Amazon apparently has earned one of the highest security ratings and it also won a huge deal with the CIA back in 2013.

However, one big negative for Amazon is its Trump-hating owner, billionaire Jeff Bezos. And Bezos’ constant attacks on Trump may have added to his company’s loss of the Pentagon contract.

In any case, the deal with Microsoft is being called a “game changer” for the company and will help grow Microsoft’s could computing division for years to come. It is also a big feather in Satya Nadella’s cap.

As CNBC noted:

Nadella once ran the Azure business, among other responsibilities in his 27-year career at Microsoft. He has made cloud a bigger piece of Microsoft while decreasing the emphasis on Windows. The company has also embraced Linux, and after Nadella joined, the cloud was renamed from Windows Azure to Microsoft Azure, reflecting that it’s possible to run Linux in Microsoft’s public cloud.

One thing is sure, it is good to see anti-Trump Amazon lose this contract. The Pentagon did well in avoiding enriching Jeff Bezos with our tax dollars.

Follow Warner Todd Huston on Twitter @WTHuston.

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