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Project

The Pentagon finally abandoned the $10 billion cloud mega-contract, which Microsoft won

Customers: US Department of Defense (Pentagon)

Washington; MILITARY INDUSTRIAL COMPLEX

Contractors: Microsoft
Product: Microsoft Azure

Project date: 2019/10

2021

New request for conditions from the same companies to replace the JEDI system

In November 2021, it became known that the Pentagon was requesting proposals from Amazon Web Services, Microsoft, Oracle and Alphabet's Google to obtain cloud computing contracts to replace the Pentagon's $10 billion JEDI system.

The Pentagon finally abandoned the $10 billion cloud mega-contract, which Microsoft won

In early July 2021, the US Department of Defense finally abandoned the $10 billion cloud mega-contract, which Microsoft had previously won.

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Due to changing requirements, expanding cloud computing capabilities and the development of the industry, the JEDI cloud contract no longer meets the needs of the Department of Defense. JEDI was being developed at a time when the needs of the ministry were different, and CSP technologies were less mature, a Pentagon spokesman said.
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US Department of Defense finally abandoned a $10 billion cloud mega contract that Microsoft won

Pentagon Acting Director of Information Technology John Sherman emphasized that JEDI was offered at a time when needs were different, and privacy policy technology and a cloud-based information exchange system were less mature.

The agency also announced its intention to develop a new cloud infrastructure called Joint Warfighter Cloud Capability. The Ministry of Defense intends to request proposals from Microsoft and Amazon.

The Pentagon calls Amazon and Microsoft the only cloud companies whose technical capabilities can meet the requirements of the department. But this time, the US military intends to consider proposals from other companies, although they will not refuse to consider the ideas of Microsoft and Google.

Earlier, Amazon through the court secured the suspension of the JEDI contract. The company considered that the ex-president's administration could influence the outcome of the tender. USA Donald Trump This could be due to the fact that The Washington Post, published by the billionaire, criticized the former American leader.

After the Pentagon announced its rejection of a large cloud contract, Amazon shares rose by almost 5%, and the fortune of the founder of this company, Jeff Bezos, reached a record $211 billion.[1]

2020

Amazon: The Pentagon wants to please Trump with a $10 billion cloud contract with Microsoft

In early September 2020, the US Department of Defense announced its intention to cooperate with Microsoft under a contract for the development of cloud infrastructure. Amazon, which was considered the favorite in this tender for $10 billion, criticized the decision of the department and associated it with the desire to "please" Donald Trump.

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AWS [Amazon cloud division - approx. TAdviser] remains deeply concerned that awarding a contract with JEDI sets a dangerous precedent that threatens the integrity of the federal procurement system and the ability of our military and government employees to access the best technologies. There were those who expressed similar concerns about the growing trend in which employees of the Ministry of Defense, instead of doing the right thing, pursue a desire to please the president, the Amazon blog says.
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Amazon believes that the Pentagon wants to please Trump with a $10 billion cloud contract with Microsoft

The company also complained that Trump refused to cooperate with the chief inspector of the Pentagon. Instead, the presidential administration took advantage of the "privilege of presidential communications," as a result of which neither it nor the Ministry of Defense began to answer questions about their ties under the JEDI contract. This suggests that the authorities have something to hide, confident in Amazon.

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The ministry completed a comprehensive reassessment of proposals to create a JEDI cloud storage infrastructure and determined that Microsoft's proposal is still the most successful for the government, the Pentagon said on September 4, 2020.
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Amazon said that more services and functions are available in the AWS infrastructure, they are safer than performance compared to competing solutions. In addition, AWS by the beginning of September 2020, it remains the only cloud service provider accredited to work with any level governmental of data secrecy, the company added.[2]

Pentagon begins to renegotiate $10 billion cloud contract under pressure from Amazon

In mid-March 2020, the US Department of Defense announced that the cloud contract with Microsoft will be revised. The Pentagon made this decision after a lawsuit from Amazon.

The US Department of Justice demanded a review of the conclusion of the contract with Microsoft, after Amazon presented its arguments in federal court. Amazon lawyers say Pentagon officials misjudged the company's offer and prices.

Amazon secured a revision of the cloud contract that the Pentagon entered into with Microsoft

The Ministry of Defense requested 120 days to review the decision. It is expected that the judge in this case will allow a re-evaluation, although she has not yet issued a formal decision by March 17, 2020.

Microsoft said the company "remains confident" in the "technological superiority" of its offer. And Amazon reported that the company is pleased with the Pentagon's recognition of "problems in essence and legitimacy" in choosing a contractor.

Pentagon spokesman Lieutenant Colonel Robert Carver said the military is disappointed with the court's decision to freeze the cloud contract, as it "unjustifiably delays the implementation of the modernization strategy of the US Department of Defense and deprives military personnel  of the capabilities that they urgently need." He expressed confidence that in the end the contract with Microsoft will be concluded. But experts believe otherwise.

The analyst of Wedbush Securities  Daniel Ives believes that owing to current situation the Pentagon can divide the cloud-based contract between Microsoft and Amazon as otherwise the ministry will enter long judicial war which will strongly delay introduction of cloud services. The department does not want this. According to the expert, the Pentagon will not sue and will begin the implementation of the project by the end of spring 2020.[3]

The court blocked the Pentagon cloud contract with Microsoft for $10 billion

In mid-February 2020, a US federal court temporarily blocked a $10 billion JEDI cloud contract concluded by the US Department of Defense with Microsoft in response to a lawsuit filed by Amazon.

The contract to create a combined corporate defense infrastructure (JEDI) is designed to modernize Pentagon IT operations and was concluded with Microsoft on October 25, 2019. To challenge the Pentagon's choice through the court decided Amazon, which also claimed to receive a contract. The company accuses President Trump of "behind-the-scenes intrigues" and demands a review of applications without political interference. The court sided with Amazon, but ordered the company to allocate $42 million to pay for any "costs and damage" that may arise if "the injunction was misapplied."

US federal court temporarily blocked a $10 billion JEDI cloud contract entered into by the Pentagon with Microsoft, in response to a lawsuit filed by Amazon

Microsoft and the Ministry of Defense criticized this decision. Microsoft Vice President Frank Shaw noted:

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While we are disappointed by the additional delay, we believe that we will eventually be able to go to work so that those who serve our country can access the new technologies they need. We are confident in the Department of Defense and believe that the court will soon prove: the Pentagon conducted a detailed, thorough and fair analysis of the needs of the Department of Defense, which was best met by Microsoft.
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Thus, Microsoft is preparing to work on the JEDI project, despite Amazon's protest. Microsoft also attracts talented specialists from defense contractors and other companies, as they have a number of vacancies with access to secret documents. Microsoft President and General Counsel Brad Smith claims that the case is in full swing, despite delays.[4]

The head of Amazon declared war on Trump

In mid-February 2020, it became known that Jeff Bezos wants to interrogate the president USA Donald Trump and find out if he personally interfered in the case of Pentagon a $10 billion cloud tender. The military contract for this amount was not received, but Amazon, Microsoft which now creates a cloud infrastructure for the Pentagon called JEDI. Amazon believes that Trump could intervene in state operations for personal gain.

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President Trump has repeatedly shown a willingness to use the position of president and commander in chief to interfere with the functions of the government - including federal procurement - to promote personal benefits, "says an Amazon spokesman. - If we want to maintain public confidence in the procurement process in the country, the presidential administration needs to disclose individual data. The question arose whether the President of the United States should be allowed to use the budget of the Department of Defense to achieve personal and political goals.
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Jeff Bezos wants to interrogate US President Donald Trump and find out if he personally interfered in the Pentagon cloud tender case

In December 2019, Amazon filed a lawsuit against the government, saying that the bidders were biased against the company. Amazon CEO Jeff Bezos and Donald Trump have been in a bad relationship for many years. Trump has repeatedly criticized The Washington Post, which Bezos owns, and claimed that Bezos uses the publication to propaganda against him personally and his administration. Bezos denied all charges.

Trump also accused Amazon of not paying enough taxes and removing most of the tax burden abroad. He even criticized Amazon for losses to the US postal service. According to him, the losses of the postal service due to the delivery of parcels for the company will average $1.5 for each parcel. For his part, Bezos has repeatedly accused Trump of various violations and sought to protect the press and freedom of speech from president attacks.[5]

2019: Pentagon signs $10 billion contract with Microsoft

On October 25, 2019, the US Department of Defense named the company that will implement a large cloud project called Joint Enterprise Defense Infrastructure (JEDI). Amazon was considered the favorite in this tender, since earlier the Internet company had already concluded contracts with the CIA and other US government agencies. But the winner in JEDI was Microsoft. In addition, IBM and Oracle fought.

In accordance with the agreement, the Pentagon will pay Microsoft up to $10 billion for the development of cloud infrastructure and the launch of various services, including IaaS solutions (infrastructure as a service) and PaaS (platform as a service), which will help the department analyze and process large amounts of classified military data.[6]

Microsoft unexpectedly received a $10 billion Pentagon cloud megacontract
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The national defense strategy dictates to us that we must increase the speed and efficiency with which we develop and introduce modern technical capabilities for our women and men in uniform, "says US Defense Ministry Chief information officer Dana Deasy. - The Pentagon's digital modernization strategy was created to support this imperative. This order is an important step in the digital transformation strategy.
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According to Dizi, before deciding on the choice of the contractor of the contract, consultations took place with the chief inspector of the department.

Amazon is discouraged by the Pentagon's decision, because Amazon is an undisputed leader in cloud technology, company spokesman  Drew Herdener told The New York Times (NYT). 

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The Amazon Web Services platform is a clear leader in cloud computing, the outcome of the [tender] would be different if it were based on a detailed analysis of the compared proposals, he said.
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Microsoft after some silence issued the statement in which it thanked for the put trust and expressed hope for long-term cooperation with the U.S. Department of Defense, transfers  agentstvoreuters.

Amazon is surprised that they lost the Pentagon tender for $10 billion

According to the newspaper, the new  United States Secretary of Defense Mark Esper requested several months more carefully to study conditions of the tender and a possibility of its main participants. A few days before the announcement of the winner of the tender, the Pentagon chief recused himself, explaining that his son was working for a company that also claimed this contract.

Wedbush Securities analyst Daniel Ives says that a year before the victory, Microsoft made significant progress in the development of technology, having managed to noticeably reduce the gap from Amazon. According to the expert, in this regard, the company of Jeff Bezos no longer looked like such a clear favorite of the competition.

In July 2019, CNN reported that a document was received by the presidential administration talking about the alleged conspiracy to "create a ten-year monopoly" of Amazon in providing the US Department of Defense with cloud solutions. The document was written by Kenneth Gluck, vice president of Oracle, which also fought for the Pentagon contract but did not reach the final stage of selection. Soon after, Donald Trump promised to "closely monitor" the situation around the choice of the winner of the tender, citing complaints from "one of the greatest companies in the world" - Oracle, IBM and Microsoft.

For several years, Trump has expressed his dissatisfaction with Amazon and its founder, Jeff Bezos, who owns The Washington Post. The president accused Amazon of using the publication for its own purposes.

Jeff Bezos, in turn, accused  the Trump-supporting publisher of blackmailing the National Enquirer.  He believed that blackmail was related to the publications of The Washington Post. Bezos noted that many  people in power, about whom the publication writes, consider him their enemy. One of these people, the founder of Amazon called Trump.

CNN linked Amazon's $10 billion failure with Trump's order

In addition to the conflict between Trump and Bezos, another factor that could prevent Amazon from winning the Pentagon's cloud megatender is considered dissatisfaction with the company's employees in cooperation with the authorities. So, Amazon workers  wrote  a letter to Bezos with a proposal to stop supplying facial recognition software to US law enforcement agencies. Such a move was associated with the migration policy of the American authorities.

Analysts at the brokerage company Compass Point called the contract with the Pentagon a "significant victory" for Microsoft in the fight against AWS and noted that Amazon could challenge the decision of the Ministry of Defense.

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The fact that Azure was chosen as the only supplier for this important project is evidence of how far this business has moved over the past couple of years, "said Mizuho analyst Gregg Moskowitz.
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According to analyst Daniel Ives, winning the Pentagon cloud tender will allow Microsoft to get most of the cloud market, the volume of which in the next 10 years will reach $1 trillion. In addition, the company will gain an advantage in the fight for subsequent state contracts related to the introduction of cloud services. The US government's cloud spending analyst Wedbush Securities estimates at $100 billion.

Patrick Moorhead, president and lead analyst at Moor Insights & Strategy, admits that he expected Amazon to win this tender, given the company's long-standing cooperation with the military, compatibility with Oracle and SAP products, as well as computing capabilities for customers.

2018

A dirty dossier was collected on Amazon to prevent the company from entering the Pentagon cloud contract

On December 20, 2018, it became known about the existence of a dossier, the purpose of which is to slander Amazon executives and US military officials in order to undermine the company's efforts to conclude a contract with the Pentagon for several billion dollars.

According to Bloomberg news agency, no evidence was found that Amazon Web Services (AWS) main competitors for JEDI - Oracle, IBM and Microsoft - are behind the document, which was discovered by a private intelligence organization RosettiStarr.

Amazon is considered the main and only contender for the conclusion of a $10 billion cloud contract with the Pentagon

The 33-page document contains a number of facts, some of which are purely personal and, at best, insignificant. But the emphasis is on the fact that Defense Department officials violated the procurement procedure to help Amazon win the project.

According to Bloomberg, the document includes "photos, graphics and public information" proving that there was a conflict of interest in the bidding process.

The focus is on Sally Donnelly, former senior adviser to Secretary of Defense James Mattis, who announced his resignation on December 20, 2018. Donnelly, before taking this government position, worked for the consulting firm SBD Advisors, whose client was AWS. In this regard, as stated in the dossier, she, being a consultant to Mattis in 2017 and early 2018, inclined him to make a decision in favor of Amazon.

Information about the dossier became known at the same time that AWS voluntarily joined the Oracle lawsuit as a defendant, which challenges the legitimacy of the JEDI bidding process.

But the document really draws attention to several facts that question the tender procedure. One of them is Mattis' trip to Seattle, while Donnelly was working for him, where he met with Amazon CEO Jeff Bezos at Amazon headquarters.

This visit took place three months before the Pentagon announced that the contract would be concluded with only one supplier, which caused discontent among many in the industry.

The dossier also raises allegations of improper personal relations, questionable business relations and sexual harassment.[7]

Microsoft employees accused the company of betrayal and demand to withdraw the application for a $10-billion Pentagon cloud contract

In October 2018, employees Microsoft began to protest against the company's plans to participate in a large cloud tender. Pentagon Earlier, as a result of staff objections, the order was withdrawn from the race. Google Everything goes to victory Amazon in a project called Joint Enterprise Defense Infrastructure (JEDI).

Microsoft workers published an open letter accusing the company of betraying its principles in relation to artificial intelligence for short-term profit. The US Department of Defense is ready to pay $10 billion over 10 years to connect all its units to cloud services.

In October 2018, employees Microsoft began protesting against the company's plans to participate in a major Pentagon cloud tender

In early 2018, Microsoft published a set of principles that the company planned to follow. The document described in detail the dangers from artificial intelligence and called for ethical standards in the development and implementation of such technologies. Due to the secrecy associated with the areas of application of JEDI, there is no understanding of "whether our work will be used to provide information, surveillance or murder," Microsoft employees said in a statement.

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We expect that the technologies we are developing will not harm a person or force him to suffer, "the authors of the letter write.
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 The text cites the words  of John  Gibson, director of the administration of the US Department of Defense, who told participants in one of the industry conferences: "We should say this quite clearly. This program is aimed at increasing the mortality of our weapons[8]

There is a possibility that Microsoft will abandon the cloud deal with the Pentagon, as Google also did earlier under pressure from employees. Amazon CEO Jeff Bezos said the refusal of large tech companies to work with the authorities is meaningless.

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We are going to support the Ministry of Defense. I think we should. Part of the manager's job is to make the right decisions, even if they are unpopular. If IT giants turn their backs on the Ministry of Defense, the country will be in trouble, "he said at the Wired 25 conference.
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The race for the Pentagon cloud contract for $10 billion: Google has come down, Microsoft is intensifying

On October 9, 2018, Google officially announced its refusal to apply for a $10-billion Pentagon contract, under which the US Defense Ministry is going to connect its users and devices to the cloud.

Google explained the decision not to participate in this tender by the fact that the project may conflict with the ethical principles of the company in the use of artificial intelligence technologies.

Google refused to fight for the Pentagon's $10 billion contract

According to the Reuters news agency, Google's principles prohibit companies from using their AI technologies of artificial intelligence in weapons, as well as projects that violate international human rights standards.

In addition, the Internet giant, unlike Amazon  and Microsoft, has not yet received government certificates with the necessary level of access to military data. A representative of  Google told the publication that the company could take up  part of the contract if the agency allowed several contractors to it.

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We believe that the multi-cloud approach most fully meets the interests of government departments, since it allows you to choose the right cloud for the appropriate type of work, "said Google.
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In addition to Google, Amazon, Oracle,  Microsoft and  IBM claimed the Pentagon's cloud mega-path. Their representatives refrained from commenting on the request of Western media, but Microsoft, meanwhile, announced the expansion of the capabilities of its Azure Government Secret cloud service to help government customers store data on their servers. Such a service will be available by the end of the first quarter of 2019.

Expanding the service will allow Microsoft to become a "strong option for the JEDI contract," said Microsoft Azure corporate vice president Julia White, adding that the company is able to meet the highest classification requirements for processing "top-secret confidential data in the United States."[9]

Gosspil: Oracle filed a complaint against the Pentagon for choosing one contractor in a giant cloud contract

In August 2018, Oracle filed a complaint against the Pentagon for choosing one contractor in a giant cloud contract. The company sent an official protest to the US Accounts Chamber (U.S.  Government  Accountability  Office, GAO).

In July 2018, the US Department of Defense launched a tender to connect its users and devices to cloud services. The program called Joint Enterprise Defense Infrastructure (JEDI) is allocated $10 billion. The department said that one winner will be chosen so that technology can be introduced as soon as possible.

Oracle filed a protest against the decision of the US Department of Defense to conclude a cloud contract with one company - most likely with Amazon

According to plans, Pentagon in the first stage, a two-year contract will be concluded with the sole contractor. During this time, the ministry wants to make sure that JEDI is carried out in accordance with the standards. It is noted that new project executors may be required in the future for other cloud tasks.

According to Oracle spokeswoman Deborah Hellinger in a conversation with Reuters, the choice of one contractor "contradicts the multi-cloud strategy in the market, which contributes to constant competition and the development of innovation, and also allows you to lower prices." The Ministry of Defense will conclude a contract with one cloud provider, with which it will unconditionally cooperate for 10 years or more, she said.

Applications for participation in the Pentagon's multibillion-dollar cloud tender will be accepted until September 2018. Until November 14, the American Accounts Chamber must respond to Oracle's protest.

In addition to Oracle, Microsoft, IBM and Google claim to participate in the JEDI program, but Amazon is considered the absolute favorite. According to Reuters, Amazon Web Services (AWS) is the only company that the US government has entrusted with processing top-secret data. According to Amazon competitors, the Pentagon's cloud contract is designed to defeat AWS.[10]

Oracle launches campaign against Amazon victory in Pentagon cloud tender

In April 2018, Oracle launched a large-scale campaign against Amazon in the hope of preventing the Pentagon cloud contract from winning the Internet giant. This was reported by Bloomberg, citing people familiar with situations.

Oracle's initiative was supported by Microsoft, IBM, Dell and Hewlett Packard Enterprise (HPE), which also want to participate in a program called Joint Enterprise Defense Infrastructure (JEDI), in which the US Department of Defense connects 3.4 million of its users and 4 million devices to cloud services. The value of this order begins at $10 billion.

Oracle launched a massive campaign against Amazon in the hope of preventing the Pentagon cloud contract from winning the Internet giant

Members of the IT coalition against Amazon want the bidding process to be open to a large number of companies and not be sharpened for one performer. Amazon is considered the favorite in this auction due to its dominant position in the cloud market.

According to Bloomberg's interlocutors, in an attempt to reduce the chances of Amazon winning the Pentagon tender, Oracle is holding regular talks with tech supporter companies, appeals to the media, lobbying representatives of legislative authorities, officials from the Ministry of Defense and the White House. 

Representatives of the Pentagon, including Secretary of Defense Jim Mattis, have repeatedly stated that a final decision on the contractors of the contract has not yet been made, and the applications of the participants will be considered from a position of competitive advantage. The winner or winners will be selected in September 2018.

Ellen Lord, chief of procurement at the Pentagon, says the tender is conducted honestly and openly, and the department retains work on several cloud contracts.

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Of course, Oracle is interested in fighting for the Department of Defense cloud contract, and we are equally interested in the success of the department's task, "said Oracle Senior Vice President Ken Glueck, adding that the best development is an open competition that will allow the Pentagon to choose from many" competing, innovative, modern and secure cloud architectures.
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IBM told Bloomberg that it supports the practice of using several clouds in companies. IBM did not confirm or deny its participation in the IT coalition against Amazon.

Amazon, Microsoft and HPE declined to comment. Dell said it competes with Oracle in the hardware market, but companies are collaborating to ensure the integration of their products.

The publication notes that the market value of Oracle is three times lower than that of Amazon, but the DBMS manufacturer is trying to jump above its head in Washington, where the company has a team of experienced employees responsible for interacting with the authorities. In 2018 Donald Trump personally charged to the Ministry of Justice to employ Ezra of Coen-Vatnik  (Ezra Cohen-Watnick) from Oracle to a position of the consultant on national security  Attorney-General Jeff Sessions.

The head of Oracle Safra Catz is an old supporter of Trump and was appointed the head of committee of transitional president's team of the USA. In addition, she joined the American Technology Council, whose participants are engaged in the modernization of federal government technologies.

Amazon's advantages lie in leading the cloud market and winning a similar tender previously organized by the CIA. Thus, the company has already shown its ability to work with confidential state information. At the same time, Amazon is spending more and more money on lobbying its interests and trying to influence the American authorities - in 2017, the cost of this amounted to a record $12.8 million. Oracle spent about $9 million.[11]

Google wants to participate in the project, but does not tell employees about it

In April 2018, it became known about the intention Google to participate in the struggle for the largest cloud contract. Ministry of Defence USA However, the company does not want to publicize this so as not to repeat the situation with another large state order.

In March 2018, Google signed a contract with the US Air Force to develop  technological intelligence  for unmanned aerial vehicles (UAVs). After that, several thousand employees of the company protested against participation in this military project.

According to Defense One, Google is ready to compete for participation in a program called Joint Enterprise Defense Infrastructure (JEDI), in which the Pentagon is introducing cloud services to support military systems. The value of this contract is estimated at at least $10 billion.

Google secretly from employees about to participate in the Pentagon cloud project for $10 billion

Despite the dissatisfaction of Google staff about the company's cooperation with the security forces, the Internet giant is doing everything to win this tender, and employees know nothing about it.

On April 11, 2018, the head of Google's cloud business, Diane Green, held a meeting with employees, at which she tried to convey that there was nothing reprehensible about the company's participation in defense projects. She also said that Google is working to create "a set of ethical principles that will guide the company in using its technologies and products." These guidelines will be formed before Google becomes involved in new military projects.

Defense One writes that Diane Green did not mitigate employee fears, while internal resistance in the company could prevent Google from winning the contract.

In addition to Google, Amazon, Microsoft and Oracle are claiming a Pentagon cloud order. Amazon is considered the favorite.[12]

Oracle chief complains to Trump about dishonest Pentagon cloud tender

In April 2018, it became known about a conversation between the CEO Oracle Safra Katz and the President Donald Trump of the United States regarding a multi-billion dollar cloud contract. Pentagon She complained that the tender was imprisoned under. Amazon The head, states who has repeatedly expressed a negative attitude towards, Amazon promised fair bidding. 

According to Bloomberg, the US Department of Defense is going to more actively use cloud services to strengthen its information security and preserve the technological advantages that the US military enjoys around the world. A competition was announced, applications for which will be accepted until May 2018. At the end of September, it is planned to name the winner.

The Pentagon is going to choose one cloud service provider that will be contracted for two years with the possibility of extension to 10 years.

The tender documentation says that the department "lacks a coordinated corporate approach to cloud infrastructure," while the ministry relies on "fragmented and for the most part local computing solutions."

One of the Pentagon's requirements for a cloud provider is the presence of an "already deployed, large and globally accessible public cloud."

Oracle head Safra Katz complained to Trump about a dishonest tender for a cloud contract with the Pentagon

According to Safra Katz, this tender was built in such a way that Amazon won it. The conversation between the head of Oracle and Donald Trump occurred during a private dinner held on April 3, 2018. In addition to Katz, long-time Trump supporter venture capitalist Peter Thiel also took part in it. Safra Katz is also known for her support for Trump. She was considered one of the main contenders for the post of national security adviser, which in March 2018 was taken by John Bolton.

Interlocutors of the news agency say that during a conversation with Trump, Katz did not emphasize that Oracle competes with Amazon for this Pentagon contract, although it is. 

The American leader heard Safra Katz and said that he wanted the competition to be honest. Bloomberg notes that the billions of dollars in cloud contract that the Pentagon is preparing could be an opportunity for another Donald Trump attack against Amazon. 

In April 2018, Trump intensified his attacks on Amazon, saying that the company makes a profit at the expense of taxpayers and displaces traditional retail stores from business. In addition, the president said that the American national postal service loses an average of $1.5 on the delivery of one parcel to Amazon customers, which is in the amount of billions of dollars. 

As a result of these attacks, Amazon shares fell by about 10%, and the fortunes of the company's founder and CEO Jeff Bezos decreased by $16 billion.

Experts believe that Amazon has a great chance of winning the Pentagon cloud tender, given the experience of cooperation between the company and the authorities. So, in 2014, the CIA entrusted the placement of classified information in the Amazon Web Services (AWS) cloud. True, among Pentagon IT contractors is Microsoft, which also has a developed cloud infrastructure. 

White House spokeswoman Sarah Huckabee Sanders told Bloomberg that Donald Trump does not interfere in the decision on this tender. 

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The president is not involved in the process. The Ministry of Defense holds competitive bidding, she said. 
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At the same time, Trump has repeatedly publicly demonstrated his readiness to interfere in the decisions of the Pentagon regarding the agreements concluded. As president-elect, he criticized the high cost of Lockheed Martin's F-35 aircraft, as a result, the latter was forced to lower prices. At the same time, Trump requested a detailed calculation of the cost of Boeing fighters in order to make them an alternative to the F-35 for the Pentagon.[13]

See also

Notes