Pentagon will not split cloud contract award between Amazon and Microsoft
Amazon is suing the Defense Department to overturn the award, potentially worth $10 billion to Microsoft
The battle between Microsoft and Amazon over the Pentagon cloud contract took another step on Monday.
The Defense Department has no intention of splitting the Joint Enterprise Defense Infrastructure contract between the two companies, according to the Breaking Defense newsletter.
Amazon is suing the Defense Department to overturn the award, potentially worth $10 billion to Microsoft.
GET FOX BUSINESS ON THE GO BY CLICKING HERE
In an email, public affairs officer Lt. Col. Robert Carver did not rule out the possibility that the award would be overturned, only the possibility that it would be split.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| MSFT | MICROSOFT CORP. | 417.00 | +4.13 | +1.00% |
| AMZN | AMAZON.COM INC. | 197.12 | -1.26 | -0.64% |
There was speculation earlier in the month that a court motion signaled the possibility to divide the contract between Microsoft and Amazon.
The Defense Department had filed a formal motion asking that certain technical aspects of the award to Microsoft be reconsidered, because a judge ruled some questionable.
PENTAGON SEEKS TO RECONSIDER PARTS OF $10B CLOUD CONTRACT AWARDED TO MICROSOFT
The Pentagon awarded the contract to Microsoft Azure in October. Many thought the favorite was Amazon Web Services, which had created a similar common cloud for the CIA and other intelligence agencies.
CLICK HERE TO READ MORE ON FOX BUSINESS
Amazon soon filed suit, arguing President Trump’s unprecedented public criticism of their proposal had tilted the scales, which DoD denied.