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Oracle’s Pushing Charges To Delay Pentagon’s Decision For “War Cloud” System?

By John F. Heerdink, Jr.
Amazon and Microsoft continue to wrestle for a $10 billion opportunity to build the first “war cloud” computing for U.S. military under the name The Joint Enterprise Defense Infrastructure plan (JEDI) after Oracle and IBM were excluded at the earlier round of the competition. The project powered by Artificial Intelligence will allow the Pentagon to speed up its capabilities of war planning and fighting. The decision is expected to come soon as last week of August. As per analysts, Microsoft is also a competing hard to crack the deal after it spent last year polishing its government security requirements. Microsoft’s Azure cloud platform has been performing well and is a tough match for the contract along with Amazon’s Web Services having existing cloud contract with Central Intelligence Agency which beat IBM in 2013 for the proposed Pentagon’s deal. The project is, however, facing legal challenges by Oracle over charges of Pentagon favoritism towards Amazon, which led the former dragging the case to the Court of Federal Claims. Oracle bought up emails, and documents revealing mismatching of interests between Amazon and the government. The argument revolved around the role and activities of a Defense Department official who moved to Amazon for work. Amazon defended by claiming that Oracle has overblown the issue that employee’s role in the deal using “tabloid sensationalism.” Some experts feel that the conflicts were real and have been concealed for benefits, however, some argue that Oracle’s concerns only point how it’s trying to make up for the loss of deal by legal gimmicks. Amazon reacted to the allegations and stated it “had nothing to do with the JEDI procurement” and blasted “misinformed or disappointed competitors” for portraying the case otherwise. Pentagon also repeatedly defended the bidding process and stressed that military leaders have been engaged with the industry and no involvement of “front office” in the defense secretary’s was present during the contract or bidding procedures, as per reports. Microsoft, however, chose not to respond to the dispute. Redmond, Washington-based American multinational technology company Microsoft (MSFT) develops, manufactures, licenses, supports and sells computer software, consumer electronics, personal computers, and related services. To learn more about Microsoft (MSFT) and to track their progress please visit the Vista Partners Coverage Page. Vista Partners LLC (”Vista”) is a California Registered Investment Advisor based in San Francisco. Vista delivers timely and relevant insights via the with daily stories, weekly market updates, monthly macroeconomic newsletters, podcasts, & Vista’s proprietary equity and market research to help you stay informed and stay competitive. Vista’s mission is to invest partner capital while arming investors with a comprehensive global financial perspective across all market sectors. Vista also seeks to provide select issuers with actionable advice regarding fundamental development, corporate governance, and capital market directives. Stay Informed! Stay Competitive! Sign Up to receive FREE email updates here!

Amazon, Microsoft wage war over the Pentagon’s ‘war cloud’

Amazon and Microsoft are battling it out over a $10 billion opportunity to build the U.S. military its first “war cloud” computing system. But Amazon’s early hopes of a shock-and-awe victory may… ..
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