Billions of dollars appear to be in the top US government and military positions as the Pentagon cancels former President Trump company Microsoft for $10 billion in cloud services.
The US Department of Defense plan is called Joint Enterprise Defense Infrastructure Cloud (JEDI), has a budget of $10 billion and was part of a broader digital modernization of the Pentagon aimed at making it more technologically agile. Outsourcing all of the US military's security requirements to a private cloud company would be a stamp of approval that would potentially rub off on all other government customers, and take the contracting company off the ground.
According to Reuters, the agreement with Microsoft was made during the Trump era, even leaving spikes that the former president had influenced the Pentagon military for their decision. Back then the two main rivals were Microsoft and Amazon. The two companies have been trying to convince them for years businesses and governments that it was safe to use their services.
Although Amazon was a favorite, the deal was given to Microsoft, forcing Amazon to file a complaint against the decision, claiming the former president had put undue pressure on military officials to remove the deal from Amazon.
Trump publicly mocked then-Amazon CEO Jeff Bezos, and repeatedly criticized the company. Amazon, in turn, had said that the Pentagon's decision was full of "terrible Mistakes,” which were the result of “improper pressure from Trump.”
However, the shares of both companies closed at a high record.
