Amazon Shares Leap 4.7% as Pentagon Cancels $10B JEDI Cloud Contract with Microsoft – Report

Business

Yahoo Finance 07 July, 2021 - 11:41am 18 views

What is Jedi cloud contract?

From Wikipedia, the free encyclopedia. The Joint Enterprise Defense Infrastructure (JEDI) contract was a large United States Department of Defense cloud computing contract which has been reported as being worth $10 billion over ten years. wikipedia.orgJoint Enterprise Defense Infrastructure

How JEDI's Ghost Will Bring Bitter Rivals Together

Defense One 07 July, 2021 - 09:04pm

Now that the Defense Department has canceled its signature $10 billion enterprise cloud computing contract, what’s next for the military’s cloud needs? 

Defense Department officials say that the solution will look a lot like a marriage between what’s being offered by Microsoft’s Azure and Amazon Web Services. It won’t be the single massive cloud envisioned as the Joint Enterprise Defense Infrastructure, affectionately called JEDI, but the bottom line from Tuesday’s announcement is that the Pentagon  is not going back to the days of small, distributed cloud environments that don’t interconnect. 

Rumors of the JEDI cloud contract’s cancellation had been circulating for weeks and there have been clues recently as to what kind of cloud the Pentagon wants. Two weeks ago, Lt. Gen. Dennis Crall, the Joint Staff’s chief information officer, and director of command, control, communications and computers/cyber spoke about the possible collapse of the JEDI contract during the Defense One Tech Summit. Whatever the outcome of the legal fight over JEDI, he said, the Pentagon would continue to pursue an enterprise cloud option, if a bit messier than the original JEDI concept. 

“I do believe that the solution that we’ve asked for still holds true today,” Crall said, but he described the likely post-JEDI solution as “a composite.”

“No matter what solution is decided upon, there will always be some level of menu that’s required. The only difference would be scale,” he said. 

Scale is the operative word. Defense Department officials have made clear that they’re not going back to the old days of many clouds from tiny vendors with no central cloud environment for data access and distribution. A cloud on the scale of what AWS, Microsoft, or Google can provide is essential to realize the Pentagon’s dream of joint all-domain command and control, or JADC2

Deputy Defense Secretary Kathleen Hicks reiterated that point, also speaking at the Defense One Tech Summit. “The department must have an enterprise solution approach to make the most of JADC2 And again, that’s the warfighting edge. ...So, there’s no doubt that we have to have a pathway forward on cloud.”

Today, that pathway looks like a joint Amazon and Microsoft cloud, the two largest companies that were fighting over the JEDI contract. The Pentagon’s chief information officer, John Sherman on Tuesday told reporters that both AWS and Microsoft would “likely” be awarded contracts under a new program called the “Joint Warfighter Cloud Capability.” But they wouldn't be the only ones.

That cloud network, where two enterprise cloud environments existing together looks a lot like what the Air Force is currently working with, as part of the curiously named Cloud ONE, which the Air Force stood up to better manage and make use of its own data as part of its JADC2 effort. Admin users can decide which of the two clouds they want to host their data on the basis of which features they like but the data also moves between them. Right now, the Air Force reports about 67 percent AWS admin users versus 33 for Microsoft Azure. 

Cloud companies have come a long way since when the JEDI contract was first conceived in 2017 according to one former senior military official deeply involved in crafting IT and cloud contracts for the Pentagon.

“I honestly believe the Department made the right decision to cut and reset. I only hope that Microsoft and Amazon find a way to make peace long enough to allow the process to move RAPIDLY so that DoD gets access to enterprise cloud as fast as possible,” said the former official, in a direct message. “I see a distinct resemblance to [Air Force] Cloud ONE.”

From the moment the JEDI cloud contract was conceived, it had enemies. IT companies that had been providing cloud computing services to various parts of the Defense Department didn’t like the implications of the entire department moving toward one enterprise cloud environment. It was clear that a larger share of Pentagon cloud business would go to one of the three companies with the size to actually handle the Pentagon’s rapidly expanding data needs. Amazon, on the basis of its size and the security credentials it had already earned, was lauded as the clear frontrunner to win the JEDI contract. But public assumptions—some proffered via misinformation campaigns by companies who felt left out of the running for the $10 billion reward—did not reflect the reality of what the Pentagon expected.

“The information war over JEDI led to a lot of myths about what it was and was not. It was never a single cloud for DOD. It was a starting point for DoD to learn lessons about shifting the Department to enterprise cloud, much as CIA had done several years ago. Those lessons enabled the Agency to then put out a bid for multiple enterprise cloud solutions. They had to pass through gate A to allow entry into gate B,” said the former senior official. 

Among the interested parties vying for the JEDI mega-prize, a secret war was launched against current and former Defense Department officials, apparently seeking to undermine the chances of frontrunner Amazon Web Services. This eventually made it to the attention of lawmakers and President Donald Trump who, upon discovering that the likely winner looked to be Amazon, founded by rival Jeff Bezos, complained publicly about the program, citing objections from “some of the great companies in the world.”

“The perception of political interference from the White House, whether real or perceived, poisoned the well. Recovery became less and less likely with every passing month. Time to move on,” said the former official. 

At the time, however, several defense officials who spoke to Defense One began to make clear one essential point: that Amazon was by no means a shoe-in. Microsoft was proving to be a nimble competitor with deep ties across the Pentagon, and was moving forward on quickly on acquiring the requisite security credentials. What the officials could not accept was the lack of an enterprise cloud solution that would force the military to return to the networked kludge of clouds it had. 

In 2019, former defense officials speaking to Defense One described the deep technical barriers to linking all of the Pentagon’s little clouds together into a larger Frankenstein cloud. It’s one reason why Amazon, Google, and Microsoft decided to build their own clouds in the first place rather than buy from the commercial market. Different vendors have different application programming interfaces, or APIs, software development kits, or SDKs and other issues. The result: a suboptimal solution. 

Do Not Sell My Personal Information

When you visit our website, we store cookies on your browser to collect information. The information collected might relate to you, your preferences or your device, and is mostly used to make the site work as you expect it to and to provide a more personalized web experience. However, you can choose not to allow certain types of cookies, which may impact your experience of the site and the services we are able to offer. Click on the different category headings to find out more and change our default settings according to your preference. You cannot opt-out of our First Party Strictly Necessary Cookies as they are deployed in order to ensure the proper functioning of our website (such as prompting the cookie banner and remembering your settings, to log into your account, to redirect you when you log out, etc.). For more information about the First and Third Party Cookies used please follow this link.

Strictly Necessary Cookies - Always Active

We do not allow you to opt-out of our certain cookies, as they are necessary to ensure the proper functioning of our website (such as prompting our cookie banner and remembering your privacy choices) and/or to monitor site performance. These cookies are not used in a way that constitutes a “sale” of your data under the CCPA. You can set your browser to block or alert you about these cookies, but some parts of the site will not work as intended if you do so. You can usually find these settings in the Options or Preferences menu of your browser. Visit www.allaboutcookies.org to learn more.

Sale of Personal Data, Targeting & Social Media Cookies

Under the California Consumer Privacy Act, you have the right to opt-out of the sale of your personal information to third parties. These cookies collect information for analytics and to personalize your experience with targeted ads. You may exercise your right to opt out of the sale of personal information by using this toggle switch. If you opt out we will not be able to offer you personalised ads and will not hand over your personal information to any third parties. Additionally, you may contact our legal department for further clarification about your rights as a California consumer by using this Exercise My Rights link

If you have enabled privacy controls on your browser (such as a plugin), we have to take that as a valid request to opt-out. Therefore we would not be able to track your activity through the web. This may affect our ability to personalize ads according to your preferences.

Targeting cookies may be set through our site by our advertising partners. They may be used by those companies to build a profile of your interests and show you relevant adverts on other sites. They do not store directly personal information, but are based on uniquely identifying your browser and internet device. If you do not allow these cookies, you will experience less targeted advertising.

Social media cookies are set by a range of social media services that we have added to the site to enable you to share our content with your friends and networks. They are capable of tracking your browser across other sites and building up a profile of your interests. This may impact the content and messages you see on other websites you visit. If you do not allow these cookies you may not be able to use or see these sharing tools.

A cookie is a small piece of data (text file) that a website – when visited by a user – asks your browser to store on your device in order to remember information about you, such as your language preference or login information. Those cookies are set by us and called first-party cookies. We also use third-party cookies – which are cookies from a domain different than the domain of the website you are visiting – for our advertising and marketing efforts. More specifically, we use cookies and other tracking technologies for the following purposes:

We do not allow you to opt-out of our certain cookies, as they are necessary to ensure the proper functioning of our website (such as prompting our cookie banner and remembering your privacy choices) and/or to monitor site performance. These cookies are not used in a way that constitutes a “sale” of your data under the CCPA. You can set your browser to block or alert you about these cookies, but some parts of the site will not work as intended if you do so. You can usually find these settings in the Options or Preferences menu of your browser. Visit www.allaboutcookies.org to learn more.

We do not allow you to opt-out of our certain cookies, as they are necessary to ensure the proper functioning of our website (such as prompting our cookie banner and remembering your privacy choices) and/or to monitor site performance. These cookies are not used in a way that constitutes a “sale” of your data under the CCPA. You can set your browser to block or alert you about these cookies, but some parts of the site will not work as intended if you do so. You can usually find these settings in the Options or Preferences menu of your browser. Visit www.allaboutcookies.org to learn more.

We do not allow you to opt-out of our certain cookies, as they are necessary to ensure the proper functioning of our website (such as prompting our cookie banner and remembering your privacy choices) and/or to monitor site performance. These cookies are not used in a way that constitutes a “sale” of your data under the CCPA. You can set your browser to block or alert you about these cookies, but some parts of the site will not work as intended if you do so. You can usually find these settings in the Options or Preferences menu of your browser. Visit www.allaboutcookies.org to learn more.

We also use cookies to personalize your experience on our websites, including by determining the most relevant content and advertisements to show you, and to monitor site traffic and performance, so that we may improve our websites and your experience. You may opt out of our use of such cookies (and the associated “sale” of your Personal Information) by using this toggle switch. You will still see some advertising, regardless of your selection. Because we do not track you across different devices, browsers and GEMG properties, your selection will take effect only on this browser, this device and this website.

We also use cookies to personalize your experience on our websites, including by determining the most relevant content and advertisements to show you, and to monitor site traffic and performance, so that we may improve our websites and your experience. You may opt out of our use of such cookies (and the associated “sale” of your Personal Information) by using this toggle switch. You will still see some advertising, regardless of your selection. Because we do not track you across different devices, browsers and GEMG properties, your selection will take effect only on this browser, this device and this website.

We also use cookies to personalize your experience on our websites, including by determining the most relevant content and advertisements to show you, and to monitor site traffic and performance, so that we may improve our websites and your experience. You may opt out of our use of such cookies (and the associated “sale” of your Personal Information) by using this toggle switch. You will still see some advertising, regardless of your selection. Because we do not track you across different devices, browsers and GEMG properties, your selection will take effect only on this browser, this device and this website.

Help us tailor content specifically for you:

Business Stories