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The Pentagon said Wednesday that Amazon, Google, Microsoft and Oracle each received a cloud-computing contract that can reach as high as $9 billion each through 2028.
The outcome of the Joint Warfighting Cloud Capability, or JWCC, effort is in line with the U.S. Defense Department's effort to rely on multiple providers of remotely operated infrastructure technology, as opposed to relying on a single company, a strategy promoted during the Trump Administration.
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Originally, the Pentagon had awarded the Joint Enterprise Defense Infrastructure, or JEDI, to Microsoft in 2019. A legal battle ensued as Amazon, the top player in the cloud infrastructure market, challenged the Pentagon's decision. In 2020, the Pentagon announced it would stick with Microsoft for the JEDI deal.
Last year the Pentagon changed its approach, asking for bids from Amazon, Google, Microsoft and Oracle to address cloud needs. But the General Services Administration stated at the time that only Amazon and Microsoft seemed to be able to meet the Pentagon's requirements.
Wednesday's result is a boon in particular for Oracle, which analysts don't see in the top tier of companies offering cloud-based computing services. Oracle generated $900 million in cloud infrastructure revenue in the quarter that ended Aug. 31, a small fraction of the $20.5 billion total for Amazon's cloud subsidiary, Amazon Web Services, in the third quarter.
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