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Microsoft beats Amazon for Pentagon's $10 billion cloud computing contract


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Microsoft beats Amazon for Pentagon's $10 billion cloud computing contract

By Phil Stewart

 

2019-10-26T020846Z_2_LYNXMPEF9O1V0_RTROPTP_4_MICROSOFT-RESULTS.JPG

FILE PHOTO: The Microsoft sign is shown on top of the Microsoft Theatre in Los Angeles, California, U.S. October 19,2018. REUTERS/Mike Blake

 

WASHINGTON (Reuters) - Microsoft Corp. <MSFT.O> has won the Pentagon's $10 billion cloud computing contract, the Defense Department said on Friday, beating out favorite Amazon.com Inc <AMZN.O>.

 

The contracting process had long been mired in conflict of interest allegations, even drawing the attention of President Donald Trump, who has publicly taken swipes at Amazon and its founder Jeff Bezos. Trump in August said his administration was reviewing Amazon's bid after complaints from other companies.

 

The Joint Enterprise Defense Infrastructure Cloud (JEDI) contract is part of a broader digital modernization of the Pentagon meant to make it more technologically agile. Specifically, a goal of JEDI is to give the military better access to data and the cloud from battlefields and other remote locations.

 

Oracle Corp <ORCL.N> had expressed concerns about the award process for the contract, including the role of a former Amazon employee who worked on the project at the Defense Department but recused himself, then later left the Defense Department and returned to Amazon Web Services.

 

In a statement, an Amazon Web Services (AWS) spokesman said the company was "surprised about this conclusion."

The company said that a "detailed assessment purely on the comparative offerings" would "clearly lead to a different conclusion," according to the statement.

 

AWS is considering options for protesting the award, a person familiar with the matter told Reuters.

 

Although the Pentagon boasts the world's most potent fighting force, its information technology remains woefully inadequate, according to many officials.

 

Officials have complained of having outdated computer systems and being unable to access files or share information as quickly as they might be able to in the private sector.

 

"If I am a warfighter, I want as much data as you could possibly give me," Lieutenant General Jack Shanahan, the director of the Joint Artificial Intelligence Center, told reporters in August describing the importance of the contract.

 

Some companies were concerned that a single award would give the winner an unfair advantage in follow-on work. The Pentagon has said it planned to award future cloud deals to multiple contractors.

 

This week, U.S. Defense Secretary Mark Esper removed himself from reviewing the deal due to his adult son's employment with one of the original contract applicants, IBM Corp <IBM.N>. IBM had previously bid for the contract but had already been eliminated from the competition.

 

Microsoft said it was working on a comment. IBM and Oracle did not immediately return requests for comment.

 

In a book slated for publication Oct. 29, retired Navy commander Guy Snodgrass, who served as a speech writer to former Defense Secretary Jim Mattis, said Trump called Mattis and directed him to "screw Amazon" by preventing it from bidding on the JEDI contract, according to an excerpt of the book seen by Reuters ahead of its release.

 

"We’re not going to do that," Mattis later told other Pentagon officials, according to the excerpt. "This will be done by the book, both legally and ethically."

 

Snodgrass declined to comment pending the release of his book.

 

In a statement announcing Microsoft as the winner, the Pentagon underscored its view that the competition was conducted fairly and legally.

 

"All (offers) were treated fairly and evaluated consistently with the solicitation's stated evaluation criteria. Prior to the award, the department conferred with the DOD Inspector General, which informed the decision to proceed," it said.

 

Microsoft shares were up 3% to $144.98 in after-hours trading after the news. Amazon shares were down 0.92% to $1,745.12.

 

The Pentagon said it had awarded more than $11 billion across 10 separate cloud contracts over the past two years.

"As we continue to execute the DOD Cloud Strategy, additional contracts are planned for both cloud services and complementary migration and integration solutions necessary to achieve effective cloud adoption," the Pentagon said.

 

(Additional reporting by Stephen Nellis and Jeffrey Dastin in San Francisco; Reporting by Phil Stewart in Washington; Editing by Cynthia Osterman, Sonya Hepinstall and Lincoln Feast.)

 

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-- © Copyright Reuters 2019-10-26
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3 hours ago, rooster59 said:

"We’re not going to do that," Mattis later told other Pentagon officials, according to the excerpt. "This will be done by the book, both legally and ethically."

Of course ultimately it wasn't up to General Mattis but rather his Commander-in-Chief POTUS Trump.

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Smells fishy.


(Headline and first three sentences only included.)

Quote

 

It’s impossible to give the Trump administration the benefit of the doubt

 

When previous administrations took controversial steps, there was a general assumption, even among critics, that they were acting in what they believed to be the public interest. When this administration makes contentious decisions — such as awarding a $10 billion Pentagon contract to Microsoft instead of Amazon, or probing the origins of an investigation into Russia’s attack on the 2016 election — the presumption of goodwill has been replaced by a presumption of ill will and illegality.

If that sounds harsh, you haven’t been paying attention.

 

 

https://www.washingtonpost.com/opinions/2019/10/26/its-impossible-give-trump-administration-benefit-doubt/

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Certainly bears a through examination seeing how jealous Donald is of bezos on account of Jeff beeing smarter and richer than Donald you know a real rags to riches guy getting there with smarts and talent not by squandering daddy fortune 

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3 hours ago, bristolboy said:

I know you don't have much use for original sources, but the article is based on information from a book written by a former aide to Kelly. What the article reports is independently confirmable. So what exactly do you allege is falsely reported in that article?

Har, Har , Har! ????

 

Stop lying....the entire article is skewed to a crybaby angle....reporting hearsay.

Where's the audio clip of Trump saying 'Screw Amazon, don't give them the defense contract'.

Even if he did say it, I don't think there's any sympathy for Bezos and his rag. I don't think

there's anything shady here AT ALL.

 

So the crybaby WAPO thinks: If you take action against Trump, you're noble, brave and full of integrity.

If Trump takes action against you it's full of full of ill-will and illegality.....

Looks like Dems setting the stage for the Barr and Durham bulldozer. Watch out for the hurt, here it comes.

LOLLLLL.

 

 

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11 minutes ago, JHolmesJr said:

Har, Har , Har! ????

 

Stop lying....the entire article is skewed to a crybaby angle....reporting hearsay.

Where's the audio clip of Trump saying 'Screw Amazon, don't give them the defense contract'.

Even if he did say it, I don't think there's any sympathy for Bezos and his rag. I don't think

there's anything shady here AT ALL.

 

So the crybaby WAPO thinks: If you take action against Trump, you're noble, brave and full of integrity.

If Trump takes action against you it's full of full of ill-will and illegality.....

Looks like Dems setting the stage for the Barr and Durham bulldozer. Watch out for the hurt, here it comes.

LOLLLLL.

 

 

Once again, a Trump supporter demands an impossibly high standard for evidence. If your criterion were in general use, almost no one would ever get of any kind of financial crime. Eye or ear witness testimony is considered compelling enough. As is the history of the witness or defendant's in regards to honesty.

If you take legal action against Trump, what's the problem? If Trump takes illegal action against you, why isn't that a problem?

(and no I'm not addressing the converse cases because that's not at issue in the examples you raised)

And laws aren't there to be enforced or not depending on the likeability of the offender or the victim. 

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23 hours ago, sirineou said:

 What ever happened to the Republican concept of free markets?It seems to me they apply it only when it suits their political agenda. 

The Repukes long ago lost any credibility -- not saying that the DumboCraps have any more, just saying. ????

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Just now, GalaxyMan said:

I'd be curious to see if Amazon -- I think Bezos is garbage, BTW -- has any recourse.

 

I think he can instruct WAPO to 'screw Trump'....which he probably has already.

Apart from that no recourse but to go sit in the corner and suck his thumb.

What a loser...his wife took him to the cleaners and now he has no 10 billion contract.

Richly deserved.

 

That biased WAPO opinion piece actually says that amazon is the world leader is data security.

Which doesn't seem to be the case....no ones a leader in this area...everyone is vulnerable and they

all have to stay alert all the time.

 

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2 minutes ago, Jingthing said:

Not with the current "justice" department which is acting as a servant of 45 rather than the people. 

It truly amazes me the things that I've seen in my life; men walking on the moon, internet, etc. Oh, forgot one, the destruction of the USSA by one malignant POS.

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1 minute ago, GalaxyMan said:

image.png.68439c761c34217c82951769a6070a7d.png

 

And she is so hot and the new GF is not. ????

 

It's funny. The same people who acclaim Trump's business prowess, despite the fact that he was repeatedly bailed out by daddy, actually denigrate Jeff Bezos's. It's not like Bezos is the richest or second richest person in the world despite not being born to a superwealthy father. Oh wait a minute...In fact, Trump's fortune is chump change comparted to Bezos'.

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16 minutes ago, bristolboy said:

 

It's funny. The same people who acclaim Trump's business prowess, despite the fact that he was repeatedly bailed out by daddy, actually denigrate Jeff Bezos's. It's not like Bezos is the richest or second richest person in the world despite not being born to a superwealthy father. Oh wait a minute...In fact, Trump's fortune is chump change comparted to Bezos'.

My issue with Bezos is that he has made all of this money, yet pays his employees pathetically. Only recently, due to pressure, has he raised the pay to $15/hour. He has all this money, yet does precious little to help the world, ala Bill Gates, et al. If I had the kind of success that Bezos has, I'd want to be known as a guy who pays his employees better than any other company. So what if it cuts into the profits a bit. I know that he was born in Cuba, but he must have some Thai oligarch blood in him, too.

 

Oh, you'll never hear me acclaim anything about Trump other than his total lack of a moral compass, his total dishonesty in all things, and the fact that he is human scum, to quote the man with the little hands.

Edited by GalaxyMan
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2 hours ago, JHolmesJr said:

 

I think he can instruct WAPO to 'screw Trump'....which he probably has already.

Apart from that no recourse but to go sit in the corner and suck his thumb.

What a loser...his wife took him to the cleaners and now he has no 10 billion contract.

Richly deserved.

 

That biased WAPO opinion piece actually says that amazon is the world leader is data security.

Which doesn't seem to be the case....no ones a leader in this area...everyone is vulnerable and they

all have to stay alert all the time.

 

If Bezos is a loser, still being either the richest or second richest person in the world, what would that make Trump? A guy who  got himself into multiple bankruptcies due to poor negotiating skills and had to repeatedly get bailed out by daddy? And if Bezos lost even what Trump claims to be his fortune, that would be only a fraction of Bezos'.

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3 hours ago, GalaxyMan said:

The Repukes long ago lost any credibility -- not saying that the DumboCraps have any more, just saying. ????

Only one party remaining in the US. the Property Party , with two wings the conservative wing and the progressive wing but both fighting to maintain the same system, and taking turns in a good cop bad cop charade.

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On 10/26/2019 at 11:02 AM, rooster59 said:

"If I am a warfighter, I want as much data as you could possibly give me," Lieutenant General Jack Shanahan, the director of the Joint Artificial Intelligence Center, told reporters in August describing the importance of the contract.

Starting hopefully with knowing where their allies positions are, so that they don't drop bombs on them?

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