Technology Top Stories

Microsoft beats Amazon to win major defense cloud contract

On Friday, the pentagon reveals that Microsoft is victorious over Amazon. This is regarding the competition for the U.S Defense Departments’ public cloud resources. The Amazon web Services was leading the market for the contract. But this could be a big contract for Microsoft as the deal is going to be worth $10 billion in 10 years. The price is not yet confirmed by any source, but the statements regarding the matter are the reason for the current price tag.

The reason for the victory

This marks the achievements of the emerging Azure cloud of Microsoft. This is the main challenger to AWS in the market. This marks a victory for Satya Nadella, who was appointed after Steve Ballmer in 2014 as the Microsoft Chief. Even with the growth and maturing AWS cloud system, Microsoft was wining over cloud storage for big companies. The Microsoft Company is also responsible for the cloud storage of Walmart. If the rumors are right and the deal is around $10 billion, it will be a big success.


The price of the deal will be much more beneficial for the Microsoft Company than Amazon Web Services. The Microsoft Company does not make the Azures earning public in dollar figures. The revenue is very less of Azure in comparison to the AWS of Amazon Web Services. The earning of the Amazon Web Services AWS in the third quarter is around $9 billion.

In the early stages of the competition, Amazon Web Services was leading the pack for the contract. This is due to the fact the AWS Cloud storage business was victorious on a deal in 2013 for the CIA. Amazon is the leading and certified company for high-level security clearance on different levels. The Microsoft Company is still playing as second fiddle to Amazon Web Series and still trying to catch up to them. Many of the other small companies were out earlier from this competition. These companies include the likes of Oracle and IBM, which were never having a chance of winning the contract. This is a big victory for Microsoft over its rivals Amazon Web Services.