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Microsoft Beats Out Amazon To Win $10 Billion Defense Deal

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Beating out market leader Amazon, Microsoft has won a Defense Department Joint Enterprise Defense Infrastructure (JEDI) cloud contract worth up to $10 billion over a period of 10 years. With this, Microsoft will now provide enterprise level, commercial Infrastructure as a Service (IaaS) and Platform as a Service (PaaS) to support the Pentagon’s business and mission operations.

While Amazon was being considered as the frontrunner for the hotly contested defense deal, Microsoft emerged victorious in the final round. Interestingly, Microsoft and Amazon had beat out other cloud giants like IBM and Oracle in an earlier round of this lucrative contract.

According to the U.S. Department of Defense, “Fiscal 2020 operations and maintenance funds in the amount of $1,000,000 are being obligated on a task order against this award to cover the minimum guarantee. The expected completion date is Oct. 24, 2029, if all options are exercised.”

It also added that the $10 billion contract will address critical “unmet warfighter requirements for modern cloud infrastructure” at all the classification levels delivered out to the tactical edge.