Get 40% Off
👀 👁 🧿 All eyes on Biogen, up +4,56% after posting earnings. Our AI picked it in March 2024.
Which stocks will surge next?
Unlock AI-picked Stocks

Pentagon delays cloud computing contract to December -official

Published 03/29/2022, 02:39 PM
Updated 03/29/2022, 03:45 PM
© Reuters. FILE PHOTO: The Pentagon is seen from the air in Washington, U.S., March 3, 2022, more than a week after Russia invaded Ukraine. REUTERS/Joshua Roberts/File Photo

By Mike Stone

WASHINGTON (Reuters) -The Pentagon delayed its decision to award an enterprise-wide Joint Warfighting Cloud Capability (JWCC) contract that could be valued as much as $9 billion to December from April, the Pentagon's chief information officer said on Tuesday.

Proposals are being evaluated from four companies: Alphabet (NASDAQ:GOOGL)'s Google, Oracle Corp (NYSE:ORCL), Microsoft Corp (NASDAQ:MSFT) and Amazon (NASDAQ:AMZN) Web Services, Pentagon Chief Information Officer John Sherman told reporters.

"This is going to take us a little bit longer than we thought," Sherman said, adding that the workload to evaluate multiple proposals simultaneously was cumbersome.

Up to four winners could be selected with the combined value of the contracts coming to as much as $9 billion over five years if all options and extensions were exercised, Sherman said.

The JWCC is the multi-cloud successor to the Joint Enterprise Defense Infrastructure (JEDI), which was an IT modernization project to build a large, common commercial cloud for the Department of Defense.

While the Trump administration wanted a single cloud-computing provider for the Department of Defense as laid out under JEDI, the Biden administration canceled it in favor of parceling out the project to multiple companies.

Such a move would put the military more in line with private-sector companies, many of whom split up their cloud computing work among multiple vendors to avoid being locked in to any specific one.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.