Pentagon cancels $10 billion JEDI cloud contract that Amazon and Microsoft were fighting over

Pentagon cancels $10 billion JEDI cloud contract that Amazon and Microsoft were fighting over

The Department of Defense announced Tuesday it’s calling off the $10 billion cloud contract that was the subject of a legal battle involving Amazon and Microsoft. But it’s also announcing a new contract and soliciting proposals from both cloud service providers where both will likely clinch a reward.

The JEDI, or Joint Enterprise Defense Infrastructure, deal has become one of the most tangled contracts for the DOD. In a press release Tuesday, the Pentagon said that “due to evolving requirements, increased cloud conversancy, and industry advances, the JEDI Cloud contract no longer meets its needs.”

Shares of Microsoft were down about 0.4% following the news and Amazon’s stock was up 3.5% after already reaching a 52-week high.

The fight over a cloud computing project does not appear to be completely over yet. The Pentagon said in the press release that it still needs enterprise-scale cloud capability and announced a new multivendor contract known as the Joint Warfighter Cloud Capability.

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