Pentagon scraps US$10 billion JEDI cloud contract with Microsoft amid Amazon challenge

The Pentagon said it cancelled the Joint Enterprise Defence Infrastructure (JEDI) contract to develop a new ‘mutli-cloud/multi-vendor’ contract

Amazon challenged the government’s deal with rival Microsoft on the grounds that former president Donald Trump was acting against the e-commerce giant

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The Pentagon building in Washington. The Pentagon said on July 6 that it cancelled its Joint Enterprise defence Infrastructure (JEDI) contract with Microsoft that was being challenged by Amazon in favour of a new contract that would meet current needs. Photo: AFP

Published: 11:38am, 7 Jul 2021Updated: 2:33pm, 7 Jul 2021

The Pentagon said Tuesday it has scrapped a massive US$10 billion cloud computing contract, sidestepping a bitter dispute between Amazon and Microsoft over allegations of political bias that swayed the bidding.

A defence Department statement said the Joint Enterprise Defence Infrastructure (JEDI) contract was cancelled because it no longer meets current needs and that it would start a process for a new “multi-cloud/multi-vendor” computing contract.

Microsoft in late 2019 won the contract, sparking a challenge by Amazon on grounds that vengeful politics by then president Donald Trump may have improperly influenced the outcome.

Officials said that instead of going forward with the deal in the face of litigation, the government would start over with the aim of getting the most up-to-date technology.

Amazon filed a lawsuit on November 22, 2019, challenging the Pentagon‘s award of a cloud-computing contract worth US$10 billion to rival Microsoft. Amazon argued former president Donald Trump’s vendetta against CEO Jeff Bezos influenced the outcome. Photo: TNS

“JEDI, conceived with noble intent, was developed at a time when the department’s needs were different,” defence Department spokesman John Sherman said during a press briefing.