Pentagon will pay Google, Oracle, Amazon and Microsoft $9 billion to use their cloud services

On December 7, 2022, the US Department of Defense (DoD) announced the conclusion of agreements with four large companies for the provision of cloud services. These included Amazon, Microsoft, Google and Oracle, and the total amount of contracts could reach $9 billion.

In July 2021, the Pentagon broke the JEDI (Joint Enterprise Defense Infrastructure) cloud agreement worth $10 billion: Microsoft won the corresponding tender in 2019, but Amazon challenged the decision of the American authorities. A new project called JWCC (Joint Warfighting Cloud Capability) is designed for the period until 2028. Its implementation will allow the Ministry of Defense to use cloud services at any level and use cloud services when working with information under any heading of secrecy.

Pentagon will pay Google, Oracle, Amazon and Microsoft $9 billion to use their cloud services

Шаблон:Quote 'The purpose of this contract is to provide the US Department of Defense with globally available cloud services - from strategic to tactical levels, the agency said in a statement. It has not yet been specified in what proportion the amount of $9 billion will be divided between Amazon, Microsoft, Google and Oracle. According to statistics, the first three of the listed companies are operators of the world's largest cloud platforms. At the same time, Oracle is significantly inferior to them in terms of market share. At the same time, contracts with all four cloud platforms were concluded according to the IDIQ (Indefinite Delivery, Indefinite Quantity) model, which provides for an unlimited amount of supplies of products or services for a fixed period of time. Under the terms of the agreements, the cost and scope of work will be determined before the start of their implementation without the possibility of subsequent change. Such a scheme will protect the US Department of Defense from going beyond the agreed budget with guaranteed receipt of ordered services.^[1]

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