The Department of Defense has canceled its $ 10 billion JEDI cloud computing contract that was at the center of a legal fight involving Microsoft and Amazon. The Pentagon said the disputed contract no longer met its needs due to “evolving requirements, increased cloud conversion and industry advancements.”
The movement, which was previously reported by CNBC, ends litigation that could have dragged on for years, although a defense official said that was not the driving force behind the change.
“JEDI was developed at a time when the needs of the Department were different,” said John Sherman, acting director of information for the Department of Defense, adding that “our landscape has advanced and a new way forward to achieve dominance is warranted. in both the traditional and non-traditional domains of warfare. “
Microsoft that awarded the Joint Venture Defense Infrastructure, or JEDI, contract in October 2019. The cloud computing deal was expected to be worth up to $ 10 billion over 10 years. Amazon in the decision-making of the Department of Defense, which resulted in the award of the contract to Microsoft. Amazon against the Department of Defense in November 2019 and then sought stop Microsoft’s work on the contract.
In a blog post on Tuesday, Microsoft said it understood the Pentagon’s logic. And that contract does not define your relationship with the Department of Defense.
“The Department of Defense faced a difficult decision: continue with what could be a litigation battle of years or find another way forward,” wrote Toni Townes-Whitley, president of US regulated industries at Microsoft, In the United States through the provision of Technology updates are more important than any individual contract, we respect and accept the decision of the Department of Defense to advance a different path to ensure mission-critical technology. “
Microsoft also noted in the blog post that the Department of Defense inspector general last year found there was no evidence of interference in the acquisition process.
In lieu of JEDI, the Pentagon has plans for a new cloud contract that will be awarded to multiple vendors. It will search for “proposals from a limited number of sources,” including Microsoft and Amazon Web Services, as well as other vendors such as Google, Oracle, and IBM that may meet the terms of the contract. according to Bloomberg.
Amazon did not immediately respond to a request for comment.