Jeff Bezos

9 rival tech companies band together to prevent Amazon Pentagon win

While Google staff have efficiently compelled their firm to publicly vow it could go straightforward on the cloud contracts with Defense Department, different enormous tech companies haven’t any such qualms.

Quite the reverse: a bunch of a minimum of 9 of them have put aside their brutal rivalries to work together within the hope of forcing the Pentagon to divvy up its $10 billion cloud to a number of distributors, Bloomberg’s Naomi Nix reports. The contract is named the Joint Enterprise Defense Infrastructure (JEDI).

These distributors, lots of whom have decades-long, heated rivalries, embody Oracle, SAP America, General Dynamics’s CSRA unit, Red Hat, VMware, Microsoft, IBM, Dell Technologies and Hewlett Packard, Bloomberg studies.

As we previously reported, Amazon, the chief in cloud computing, is a close to shoe-in to win the entire contract for itself, which was initially arrange to be a awarded to a single cloud supplier.


Oracle and Microsoft have been lobbying laborious to prevent that from occurring.

The lengthy listing of fierce IT rivals are coordinating issues like wooing the press and strain on the legislators and the protection people concerned, Bloomberg studies.

Their lobbying efforts have yielded a bit of fruit, too. Earlier this month the House Budget Committee handed laws that threatened to halt funding for JEDI except the Pentagon submitted a plan to use a number of distributors. However, the Senate’s model of the identical spending invoice is extra supportive of the single-source contract, reports FedScoop.

The contract is scheduled to be awarded in September and the method for successful it has been extremely contentious for months. Opponents of Amazon even went as far as to take out an advert within the New York Post — identified to be one in every of Trump’s favourite publications — aimed straight at Trump, with imagery of a laughing Amazon CEO Jeff Bezos.

The $10 billion prize is a giant attract but it surely’s not nearly this specific contract. A win of this magnitude from the Pentagon can be an unlimited vote of confidence in Amazon’s cloud that different enterprises would observe. With this win Amazon, already the market chief, can be just like the Road Runner of cloud computing glancing over his shoulder at Wiley Coyote with an eat-my-dust grin.


The doable mud eaters have due to this fact determined that the enemy of the enemy is their good friend.

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