Blow for Microsoft after Pentagon cancels $10B “JEDI” contract

The US Pentagon has scrapped plans to move forward with a $10 billion cloud computing contract

The US Department of Defence says the JEDI contract was no longer viable because of “the shifting technology environment”.

It initially offered Microsoft the contract, following clashes with Amazon over the deal. Amazon claiming former US President Donald Trump influenced the decision.

Both companies will now have the ability to bid for the new contract, with the Department of Defence saying it will now seek new proposals “from a limited number of sources”.

Amazon previously launched a legal challenge against the so-called “JEDI contract”. It claimed the decision to favour Microsoft was political.

But why the fight between Amazon and Microsoft?

The two companies are allegedly the only suppliers that are capable of carrying out such a complex operation.

The Pentagon says “cloud conservancy technology has evolved”, but it’s evident that Trump’s influence over the initial decision also had an impact.

The Pentagon would have likely been subjected to ongoing legal battles if Microsoft carried out the deal.