The Department of Defense announced Tuesday it was canceling the massive cloud contract awarded to Microsoft in 2019, saying it “no longer meets its needs.”
The JEDI contract was the largest-ever of its kind, with an estimated value of roughly $10 billion over a 10-year stretch. The deal, initially intended to modernize the Pentagon’s IT operations, was the subject of a drawn-out legal battle with Amazon and Microsoft.
Amazon filed a lawsuit in 2019 claiming that former President Trump had a bias against CEO Jeff Bezos that influenced the Pentagon’s decision to award the contract to Microsoft.
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BREAKING: Pentagon cancels $10 billion JEDI cloud contract that Amazon and Microsoft were fighting overhttps://t.co/0aODvQmMNZ
— CNBC Now (@CNBCnow) July 6, 2021
BREAKING: The Pentagon said it has canceled a cloud-computing contract with Microsoft that could eventually have been worth $10 billion and will instead pursue a deal with both Microsoft and Amazon. https://t.co/Xik6ll0nYd
— The Associated Press (@AP) July 6, 2021
NEW: The Defense Department abruptly canceled a 10-year, $10 billion cloud-computing contract it awarded to Microsoft, which had sparked a flurry of legal action from Amazon. https://t.co/Ox9YrYKZtM
— MarketWatch (@MarketWatch) July 6, 2021