Jeff Bezos is just fine taking the Pentagon’s $10B JEDI cloud contract

Some tech firms may need an issue taking cash from the Division of Protection, however Amazon isn’t one in every of them, as CEO Jeff Bezos made clear at the moment at the Wired25 conference. Simply final week, Google pulled out of the working for the Pentagon’s $10 billion, 10-year JEDI cloud contract, however Bezos urged that he was completely happy to take the federal government’s cash.

Bezos has been surprisingly quiet concerning the contract up till now, however his firm has actually attracted loads of consideration from the businesses competing for the JEDI deal. Simply final week IBM filed a formal protest with the Authorities Accountability Workplace claiming that the contract was stacked in favor one vendor. And whereas it didn’t identify it instantly, the clear implication was that firm was the one owned by Bezos.

Final summer time Oracle also filed a protest and likewise complained that they believed the federal government had arrange the contract to favor Amazon, a cost spokesperson Heather Babb denied. “The JEDI Cloud closing RFP displays the distinctive and demanding wants of DOD, using one of the best practices of aggressive pricing and safety. No distributors have been pre-selected,” she said last month.

Whereas rivals are clearly nervous about Amazon, which has a substantial lead within the cloud infrastructure market, the corporate itself has saved quiet on the deal till now. Bezos set his firm’s assist in patriotic phrases and one in every of management.

“Typically one of many jobs of the senior management workforce is to make the suitable determination, even when it’s unpopular. And if if large tech firms are going to show their again on the US Division of Protection, this nation goes to be in hassle,” he mentioned.

“I do know everyone seems to be conflicted concerning the present politics on this nation, however this nation is a gem,” he added.

Whereas Google tried to border its determination as taking a principled stand in opposition to misuse of know-how by the federal government, Bezos selected one other tack, stating that every one know-how can be utilized for good or unwell. “Applied sciences are all the time two-sided. You understand there are methods they are often misused in addition to used, and this isn’t new,” Bezos informed Wired25.

He’s not flawed after all, however it’s onerous not to take a look at the dimensions of the contract and see it as purely a enterprise determination on his half. Amazon is as sizzling for that $10 billion contract as any of its rivals. What’s totally different on this speak is that Bezos made it sound like a purely patriotic determination, somewhat than financial one.

The Pentagon’s JEDI contract might have a worth of as much as $10 billion with a most size of 10 years. The contract is framed as a two 12 months cope with two three-year choices and a closing one for 2 years. The DOD can choose out earlier than exercising any of the choices.

Bidding for the contract closed final Friday. The DOD is anticipated to decide on the profitable vendor subsequent April.

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