Pentagon cancels $10B JEDI cloud contract involving Amazon, Microsoft

Pentagon cancels $10B JEDI cloud contract involving Amazon, Microsoft

The DoD will offer individual contracts to them for specific needs instead.

July 6, 2021, 5:12 PM

• 1 min read

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After years of legal wrangling, the Department of Defense has canceled its cloud-computing contract with Microsoft that could have been worth $10 billion citing tech advances and different needs than when the contract was first offered.

Instead, the Pentagon will now offer deals to Microsoft and Amazon -- the only companies cleared to meet the military’s security requirements -- for individual contracts for specific needs.

The Jedi Cloud can be thought of as the military’s classified version of Apple's iCloud where information could be stored securely and shared across the military’s computer system. It was mired in controversy as Microsoft beat out Amazon for the deal.

"With the shifting technology environment, it has become clear that the JEDI Cloud contract, which has long been delayed, no longer meets the requirements to fill the DoD’s capability gaps," the Pentagon said in a statement.

This is a developing story. Please check back for updates.

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