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The battle for the $ 10 billion contract of the Pentagon



Achieving a major contract can affect or break a cloud provider's business, leaving Google, Amazon, Microsoft, and Oracle competing for a ten-year US Department of Defense (US $ 10 billion) Enterprise Cloud project. JEDI). After Microsoft was out of the race and Google decided to pull off its bid, it seemed Amazon AWS was guaranteed to get the JEDI deal.

However, Oracle does not deviate and the tech giant has filed a lawsuit calling into question the JEDI contract A single cloud provider is preferred in the bidding process. TechRadar Pro spoke with RackWare co-founder and CEO, Sash Sunkara, to better understand how cloud projects work in government and what it could mean if Oracle's lawsuit is successful.

Why is the US government commissioning public cloud providers? Which services do you offer?

I think the US government is ready to leverage the flexibility and agility of the cloud in the same way that commercial enterprises do. By using public cloud providers, the government could offer better service, bring apps to market faster, and give the country a competitive advantage within intelligence services. After all, these data centers have the best features. Instead of investing their own capital in building this technology, they can use the cloud to create the same dynamics that companies have discovered in the private sector.

Can you tell us more about the Defense Department joint JEDI (Enterprise Defense Infrastructure) deal and why it's so sought after?

It's hard to think about this treaty without thinking about what it means for the state of the industry. The cloud introduction in the federal market is still in its infancy. Those who win this mission not only have the privilege of using the US Department of Defense's solution. They gain additional importance in the battle for market dominance. Ultimately, the JEDI contract is so coveted because it's not really about a single contract. It's about how this contract will get the winner to increase his footprint in a niche that competitors have not yet touched.

(Image credits: Geralt / Pixabay)

Initially, Google, AWS and Oracle had applied for the contract. How did Google decide to pull the offer?

We know that Google pulled the offer because the project conflicted with the AI ​​principles. If the contract had been open to multiple vendors, Google would have liked to suggest parts of the work. Your attitude is reminiscent of what we have heard on the market ̵

1; this is not a single player market. It would have been in the Government's best interests to seek a multi-cloud approach so they could choose a cloud for each workload. In fact, most companies opt for a two to three cloud strategy, especially when it comes to business-critical apps.

Why is Oracle taking legal action against AWS when it seemed the clear winner of the contract?

There is a feeling that AWS was given some unfair advantage. I can not say whether this is true or not, but it has never seemed to the Federal Government to offer this type of contract to a single supplier. Bidders are now asking some difficult questions: was AWS given access where others were not? Were you given more coaching and guidance to position them for the job?

If the contract was open to more than one provider, AWS would certainly win some of it. Other solutions, however, excel in terms of reliability, availability or reliability. It is not necessarily true that AWS was able to win everything right from the start.

Do you think that Oracle can act against AWS? Why or why not?

I think it's possible that AWS was involved in this process and received information that other providers did not receive. In addition, one must remember that this is our federal government. For safety and security reasons, it does not make sense to deploy all these important apps in a single cloud provider. Ultimately, a federal contract is required to provide equal conditions for the bidders. I think Oracle has a shot. Whether they will win is to be determined.

(Image: © Photo credits: Everything Possible / Shutterstock)

What are the benefits of working with a single cloud provider? Multi-cloud approach from the perspective of the government?

Perhaps the government thought the merger with one vendor enabled them to more easily build and streamline a cloud strategy. From a security point of view, it seemed easier to reinforce a single cloud. However, most people believe that the JEDI contract should have been awarded to two or even three sellers rather than putting all DoD's eggs in one basket. The risk is actually higher if you put everything in a cloud, and we now have technologies that support a multi-cloud approach.

What are some examples of public cloud companies that have significantly expanded their business after signing a government contract?

The federal government is just beginning to discover the full potential of the cloud, so there are not many examples. However, there are companies like Terremark that are entering the government sector. The JEDI contract is a huge deal for those who win, because they will be detained for 10 years, and we know that companies are best placed to expand their position once they have signed a major contract. I think that's why there are so many conflicts.

Sash Sunkara, co-founder and CEO of RackWare


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