Amazon, Microsoft wage war over the Pentagon's 'war cloud'

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Amazon, Microsoft wage war over the Pentagon's 'war cloud'
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Amazon and Microsoft are battling for a $10B prize to build the U.S. military its first 'war cloud.' The project would store and process vast amounts of classified data, allowing the Pentagon to use artificial intelligence to speed up its war planning.

FILE - In this June 19, 2017, file photo President Donald Trump, left, and Satya Nadella, Chief Executive Officer of Microsoft, center, listen as Jeff Bezos, Chief Executive Officer of Amazon, speaks during an American Technology Council roundtable in the State Dinning Room of the White House in Washington. Amazon and Microsoft are battling for a $10 billion opportunity to build the U.S. military its first “war cloud.

But that’s only if the project isn’t derailed first. It faces a legal challenge by Oracle and growing congressional concerns about alleged Pentagon favoritism toward Amazon. Military officials hope to get started soon on what will be a decade-long business partnership they describe as vital to national security.

“This is really the cloud sweepstakes, which is why there are such fierce lawsuits,” said Wedbush Securities analyst Daniel Ives. With an acronym evoking Star Wars and a price tag of up to $10 billion over the next decade, JEDI has attracted more attention than most cloud deals. Adocument unveiled by the Defense Department last year calls for replacing the military’s “disjointed and stove-piped information systems” with a commercial cloud service “that will empower the warfighter with data and is critical to maintaining our military’s technological advantage.

Worried that the Pentagon’s bid seemed tailor-made for Amazon, rivals Oracle and IBM lodged formal protests last year arguing against the decision to award it to a single vendor., IBM executive Sam Gordy wrote that a single-cloud approach went against industry trends and “would give bad actors just one target to focus on should they want to undermine the military’s IT backbone.”

But Goure, whose think tank gets funding from Amazon but not from its cloud rivals Microsoft, Oracle or IBM, said the criticism is “coming from the also-rans.” He says rivals like Oracle “missed the boat” in cloud technology and are trying to make up lost ground through legal maneuvers.

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