Microsoft snags hotly contested $10 billion defense contract.

Microsoft has emerged victorious in a dramatic competition for public cloud resources for the U.S. Defense Department, beating out market leader Amazon Web Services, the Pentagon said on Friday. The contract could be worth as much as $10 billion over a decade, according to a statement.

Microsoft snags hotly contested $10 billion defense contract, beating out Amazon on 25th October 2019. It was a great news for Microsoft. As a result Microsoft stock rose as much as 3% in extended trading after the announcement, and Amazon stock dipped less than 1%.
 
The achievement highlights the emergence of Microsoft’s Azure cloud as a challenger to AWS and represents the latest victory for Satya Nadella, who took over from Steve Ballmer as Microsoft chief in 2014. Microsoft has also won major cloud-infrastructure deals from companies like Walmart even as AWS has kept growing.
 
Key Notes from this contract: 
 
  • The JEDI contract is worth up to $10 billion over 10 years.
  • IBM and Oracle are among the companies that also sought the contract but ended up getting ruled out.
  • Amazon has been a repeated target for President Trump, who announced in July.