The US government wants to cancel a cloud computing contract that has already been awarded. The needs of the military have since changed, it said.
After the controversial award of a billion-dollar cloud computing contract to Microsoft, the US Department of Defense wants to terminate the contract.
The long-delayed order no longer meets the needs of the military due to “changing requirements”, the ministry said on Tuesday. The steps to terminate the contract have been initiated.
Microsoft was awarded the contract for the business at the end of 2019, although the Amazon Web Services (AWS) division of the world’s largest online retailer had been the favorite for a long time. Amazon then sued because it suspected political influence in view of the rather hostile attitude of then President Donald Trump towards the company.
On Tuesday, the ministry said that Microsoft and AWS would now seek offers for further cloud services. The two providers are the only ones who can meet the requirements of the Pentagon.
The original contract was worth around 10 billion US dollars (currently 8.4 billion euros) for a period of ten years. In addition to the financial component, the contract, known under the acronym JEDI, was also considered a prestige project that could have made further government contracts easier for the executing company.
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