Amazon Notches Comeback Win in Years-Long Pentagon Cloud Battle

Pentagon plans to scrap and rebid $10 billion cloud contract
Amazon, Microsoft earn chance to compete for new projects

The Pentagon scrapped a $10 billion cloud-computing contract awarded in 2019 to Microsoft Corp. after several years of wrangling between the government and some of the biggest U.S. tech companies over the deal, indicating it plans to divide the work between Microsoft and rival Amazon.com Inc. instead. Naomi Nix reports on “Balance of Power.”Source: Bloomberg)

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By Naomi Nix and Matt Day

July 7, 2021 at 6:00 AM UTC

This article is for subscribers only.

Amazon.com Inc. Chief Executive Officer Andy Jassy can celebrate at least one win during his first week at the helm of the e-commerce giant.

The Seattle-based company notched a victory on Tuesday -- for now -- when the Pentagon announced it will scrap the $10 billion contract it had awarded to Microsoft Corp. in 2019 and divide the job between the two tech titans.