As rivals seek to fend off Amazon, the Pentagon tweaks its cloud deal

By Steven Melendez

April 16, 2018

The Defense Department has revised a request for proposals for a potential $10 billion cloud-computing deal to modernize Pentagon IT systems. The move comes as rivals like Oracle and IBM hope to get at least a piece of the contract away from cloud giant Amazon, Reuters reports.

The multi-year deal to connect millions of Pentagon users and devices to a cloud-based IT system will be a huge feather in the cap of whatever cloud provider wins it. So far, the DoD has indicated it is looking to give the entire contract to a single provider–winning criticism from companies hoping to get part of the deal, potentially as part of a multi-vendor solution. A final version of the request for proposals is expected to be released next month.

“No major commercial enterprise in the world would risk a single cloud solution, and neither should the Pentagon,” said Sam Gordy, general manager of IBM U.S. Federal, in a statement reported by the Washington Business Journal.

Amazon, which already has a $600 million deal with the CIA to provide services for intelligence use, is widely considered the forerunner, despite President Trump’s frequent verbal attacks on the company.

The Pentagon has so far received more than 1,000 comments from dozens of unnamed potential vendors, officials have said.

(30)