{"id":98724,"date":"2019-07-10T03:20:38","date_gmt":"2019-07-10T03:20:38","guid":{"rendered":"https:\/\/one.sightlinemg.com\/militarytimes\/uncategorized\/2019\/07\/10\/amazon-microsoft-wage-war-over-the-pentagons-war-cloud\/"},"modified":"2026-08-08T10:41:43","modified_gmt":"2026-08-08T10:41:43","slug":"amazon-microsoft-wage-war-over-the-pentagons-war-cloud","status":"publish","type":"post","link":"https:\/\/one.sightlinemg.com\/militarytimes\/news\/pentagon-congress\/2019\/07\/10\/amazon-microsoft-wage-war-over-the-pentagons-war-cloud\/","title":{"rendered":"Amazon, Microsoft wage war over the Pentagon\u2019s \u2018war cloud\u2019"},"content":{"rendered":"\n<p class=\"wp-block-paragraph\">Amazon and Microsoft are battling it out over a $10 billion opportunity to build the U.S. military its first \u201cwar cloud\u201d computing system. But Amazon\u2019s early hopes of a shock-and-awe victory may be slipping away.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Formally called the <a href=\"https:\/\/www.c4isrnet.com\/opinion\/2019\/05\/20\/is-this-a-jedi-mind-trick\/\" target=_blank>Joint Enterprise Defense Infrastructure plan<\/a>, or JEDI, the military\u2019s computing project would store and process vast amounts of classified data, allowing the Pentagon to use artificial intelligence to speed up its war planning and fighting capabilities. The Defense Department hopes to award the winner-take-all contract as soon as August. Oracle and IBM were eliminated at an earlier round of the contract competition.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">But that\u2019s only if the project isn\u2019t derailed first. It faces <a href=\"https:\/\/www.c4isrnet.com\/it-networks\/cloud\/2019\/02\/20\/judge-grants-stay-of-lawsuit-to-investigate-jedi-conflicts-of-interest\/\" target=_blank>a legal challenge by Oracle<\/a> and <a href=\"https:\/\/www.c4isrnet.com\/it-networks\/2019\/05\/20\/house-appropriators-lack-faith-in-jedi-plan-choke-funds\/\" target=_blank>growing congressional concerns<\/a> about alleged Pentagon favoritism toward Amazon. Military officials hope to get started soon on what will be a decade-long business partnership they describe as vital to national security.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u201cThis is not your grandfather\u2019s internet,\u201d said Daniel Goure, vice president of the Lexington Institute, a defense-oriented think tank. \u201cYou\u2019re talking about a cloud where you can go from the Pentagon literally to the soldier on the battlefield carrying classified information.\u201d<\/p>\n\n\n\t<aside class=\"smg-interstitial-link wp-block-smg-interstitial-link\">\n\t\t<a href=\"https:\/\/one.sightlinemg.com\/c4isrnet\/opinion\/2019\/03\/21\/the-pentagons-jedi-cloud-strategy-is-ambitious-but-can-it-work\/\" class=\"smg-interstitial-link__inner\">\n\t\t\t\t\t\t\t<div class=\"smg-interstitial-link__media\">\n\t\t\t\t\t<img loading=\"lazy\" decoding=\"async\" width=\"300\" height=\"200\" src=\"https:\/\/one.sightlinemg.com\/wp-content\/uploads\/2026\/08\/GettyImages-875326640.jpg.jpg?w=300\" class=\"smg-interstitial-link__image wp-post-image\" alt=\"\" \/>\t\t\t\t<\/div>\n\t\t\t\t\t\t<div class=\"smg-interstitial-link__content\">\n\t\t\t\t<span class=\"smg-interstitial-link__kicker\">Related<\/span>\n\t\t\t\t<h3 class=\"smg-interstitial-link__title\">The Pentagon\u2019s JEDI cloud strategy is ambitious, but can it work?<\/h3>\n\t\t\t\t\t\t\t\t\t<p class=\"smg-interstitial-link__excerpt\">The strategy sets ambitious goals on how the military will use cloud technology to pool its vast streams of data and operate \u201cat the speed of relevance.&quot;<\/p>\n\t\t\t\t\t\t\t<\/div>\n\t\t<\/a>\n\t<\/aside>\n\t\n\n\n<p class=\"wp-block-paragraph\">Amazon was considered an early favorite when the Pentagon began detailing its cloud needs in 2017, but its candidacy has been marred by an Oracle allegation that Amazon executives and the Pentagon have been overly cozy. Oracle has a final chance to make its case against Amazon \u2014 and the integrity of the government\u2019s bidding process \u2014 in a court hearing Wednesday.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u201cThis is really the cloud sweepstakes, which is why there are such fierce lawsuits,\u201d said Wedbush Securities analyst Daniel Ives.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Ives said an opportunity that was a \u201cno brainer\u201d for Amazon a year ago now seems just as likely to go to Microsoft, which has spent the past year burnishing its credentials to meet the government\u2019s security requirements.<\/p>\n\n\n\t<aside class=\"smg-interstitial-link wp-block-smg-interstitial-link\">\n\t\t<a href=\"https:\/\/one.sightlinemg.com\/federaltimes\/it-networks\/cloud\/2019\/07\/10\/jedi-how-we-got-here\/\" class=\"smg-interstitial-link__inner\">\n\t\t\t\t\t\t\t<div class=\"smg-interstitial-link__media\">\n\t\t\t\t\t<img loading=\"lazy\" decoding=\"async\" width=\"300\" height=\"200\" src=\"https:\/\/one.sightlinemg.com\/wp-content\/uploads\/2026\/08\/AP19143020274486.jpg.jpg?w=300\" class=\"smg-interstitial-link__image wp-post-image\" alt=\"\" \/>\t\t\t\t<\/div>\n\t\t\t\t\t\t<div class=\"smg-interstitial-link__content\">\n\t\t\t\t<span class=\"smg-interstitial-link__kicker\">Related<\/span>\n\t\t\t\t<h3 class=\"smg-interstitial-link__title\">JEDI: How we got here<\/h3>\n\t\t\t\t\t\t\t\t\t<p class=\"smg-interstitial-link__excerpt\">After months of back-and-forth in court filings, oral arguments are finally here.<\/p>\n\t\t\t\t\t\t\t<\/div>\n\t\t<\/a>\n\t<\/aside>\n\t\n\n\n<p class=\"wp-block-paragraph\">For years, Amazon Web Services has been the industry leader in moving businesses and other institutions onto its cloud \u2014 a term used to describe banks of servers in remote data centers that can be accessed from almost anywhere. But Microsoft\u2019s Azure cloud platform has been steadily catching up, as have other providers such as Google, in both corporate and government settings.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">With an acronym evoking Star Wars and a price tag of up to $10 billion over the next decade, JEDI has attracted more attention than most cloud deals. A cloud strategy document unveiled by the Defense Department last year calls for replacing the military\u2019s \u201cdisjointed and stove-piped information systems\u201d with a commercial cloud service \u201cthat will empower the warfighter with data and is critical to maintaining our military\u2019s technological advantage.\u201d<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">In a court filing last month, Lt. Gen. Bradford Shwedo said further delays in the Oracle case will \u201champer our critical efforts in AI\u201d as the U.S. tries to maintain its advantage over adversaries who are \u201cweaponizing their use of data.\u201d Shwedo said JEDI\u2019s computing capabilities could help the U.S. analyze data collected from surveillance aircraft, predict when equipment needs maintenance and speed up communications if fiber and satellite connections go down.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Amazon was considered an early front-runner for the project in part because of its existing high-security cloud contract with the Central Intelligence Agency. It beat out IBM for that deal in 2013.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Worried that the Pentagon\u2019s bid seemed tailor-made for Amazon, rivals Oracle and IBM lodged formal protests last year arguing against the decision to award it to a single vendor.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">In an October blog post , IBM executive Sam Gordy wrote that a single-cloud approach went against industry trends and \u201cwould give bad actors just one target to focus on should they want to undermine the military\u2019s IT backbone.\u201d<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The Government Accountability Office later dismissed those protests, but Oracle persisted by taking its case to the Court of Federal Claims, where it has pointed to emails and other documents that it says show conflicts of interest between Amazon and the government. Oral arguments in that case are scheduled for Wednesday. The case has delayed the procurement process, though the Pentagon says it hopes to award the contract as early as Aug. 23.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Oracle\u2019s argument is centered on the activities of a Defense Department official who later went to work for Amazon. Amazon says Oracle has exaggerated that employee\u2019s role in the procurement using \u201ctabloid sensationalism.\u201d<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Some defense-contracting experts say the conflict allegations are troubling.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u201cNo one seems to deny that these were actual conflicts and the players affirmatively attempted to conceal them,\u201d said Steven Schooner, a professor of government procurement law at George Washington University. \u201cThat simply cannot be tolerated.\u201d<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">But Goure, whose think tank gets funding from Amazon but not from its cloud rivals Microsoft, Oracle or IBM, said the criticism is \u201ccoming from the also-rans.\u201d He says rivals like Oracle \u201cmissed the boat\u201d in cloud technology and are trying to make up lost ground through legal maneuvers.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The Pentagon has repeatedly defended its bidding process, though the concerns have trickled into Congress and onto prime-time TV. Fox News host Tucker Carlson devoted a segment last month to the cloud contract that questioned an Amazon executive\u2019s 2017 meeting with then-Defense Secretary Jim Mattis. Carlson also aired concerns by Republican Rep. Mark Meadows, who said \u201cthe allegations are incredible\u201d and should be investigated.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">A Wall Street Journal report on Sunday further detailed government emails about that meeting and another one between Mattis and Amazon CEO Jeff Bezos later that year. Sen. Chuck Grassley, an Iowa Republican, said in an emailed statement Tuesday that there are so many questions that the Pentagon should \u201crestart the whole process\u201d and wait until its inspector general can thoroughly review for potential conflicts.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Amazon said in a statement Tuesday the meetings \u201chad nothing to do with the JEDI procurement\u201d and blamed \u201cmisinformed or disappointed competitors\u201d for trying to imply otherwise.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Pentagon spokeswoman Elissa Smith said while military leaders are expected to engage with industry, no one in the defense secretary\u2019s \u201cfront office\u201d participated in drafting the contract requirements or soliciting bids.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Ives said it remains to be seen how much the conflict allegations will hurt Amazon or help Microsoft. Microsoft has largely stayed quiet during the dispute. In a statement, it focused on highlighting its 40-year partnership supplying the military with services such as email.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Amazon and Microsoft are battling it out over a $10 billion opportunity to build the U.S. military its first &#8220;war cloud&#8221; computing system. But Amazon&#8217;s early hopes of a shock-and-awe victory may be slipping away.<\/p>\n","protected":false},"author":7,"featured_media":82033,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_yoast_wpseo_meta-robots-noindex":"","_yoast_wpseo_meta-robots-nofollow":"","_yoast_wpseo_canonical":"","_acf":"","_yoast_wpseo_primary_category":86,"_jetpack_feature_clip_id":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","_smg_distribution_targets":{"4":{"categories":["pentagon-congress","news","middle-column","home","daily-news-roundup","newsletters"],"primary_category":"pentagon-congress"},"5":{"categories":["pentagon-congress","news","middle-column","home","daily-news-roundup","newsletters"],"primary_category":"pentagon-congress"},"6":{"categories":["pentagon-congress","news","middle-column","home","daily-news-roundup","newsletters"],"primary_category":"pentagon-congress"},"7":{"categories":["pentagon-congress","news","middle-column","home","daily-news-roundup","newsletters"],"primary_category":"pentagon-congress"}}},"categories":[29,117,15,86],"tags":[],"coauthors":[3208],"class_list":["post-98724","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-home","category-middle-column","category-news","category-pentagon-congress"],"acf":{"subheadline":"","legacy_arc_id":"WTBJS7ISX5EJRB3IAVF7HARD64","arc_canonical_url":"\/news\/pentagon-congress\/2019\/07\/10\/amazon-microsoft-wage-war-over-the-pentagons-war-cloud\/","remove_feature_photo":false,"is_sponsored":false,"subtype":"","redirect_url":"","disable_inline_ads":false,"native_logo_pretext":"Presented By:"},"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v26.0 (Yoast SEO v28.1) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>Amazon, Microsoft wage war over the Pentagon\u2019s \u2018war cloud\u2019 - Military Times<\/title>\n<meta name=\"description\" content=\"Amazon and Microsoft are battling it out over a $10 billion opportunity to build the U.S. military its first &quot;war cloud&quot; computing system. 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