Why Trump torpedoed Amazon’s bid to run Pentagon’s ‘war cloud’

World

Why Trump torpedoed Amazon’s bid to run Pentagon’s ‘war cloud’

The decision to award the Jedi contract to Microsoft blindsided everybody. Here are the real reasons

Tom Hoggins

As news emerged that Microsoft had beaten rival Amazon to the most coveted and bitterly contested Pentagon contract in decades, the word that kept cropping up in reports was “surprise”.

The $10bn (R147bn) Joint Enterprise Defence Infrastructure (Jedi) “war cloud” computing contract, which is set to drastically modernise the US military’s computer systems, was initially believed to be “giftwrapped” for Amazon Web Services (AWS).

Rivals complained that the bidding process was rigged to favour Amazon, which holds a 48% share of the $250bn cloud market. But after a year of acrimonious wrangling between AWS, Microsoft and other major cloud computing players, the contract was given to Amazon’s main rival, leaving observers blindsided. Even AWS expressed “surprise” at the decision...

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