What Could the Latest JEDI Contract News Mean for Amazon?
Amazon.com's (NASDAQ: AMZN) cloud-computing business scored an initial victory last week when a federal judge issued an order to pause Microsoft's (NASDAQ: MSFT) work on a $10 billion contract with the government. Amazon Web Services (AWS), considered a front-runner to win the Joint Enterprise Defense Infrastructure (JEDI) contract with the Pentagon, lost the deal to rival Microsoft in the fall and subsequently filed a lawsuit. This latest news is positive for Amazon. But what might an ultimate win or loss mean for the company?
First a bit of background. Many thought Amazon would win the JEDI contract because AWS previously held a contract with the CIA and had been the only cloud-computing business with clearance to store top-secret data in the cloud. According to a Reuters report, Amazon's lawsuit claims the Pentagon's decision was a result of "improper pressure" from President Donald Trump. The president has repeatedly criticized both Amazon and its founder and CEO, Jeff Bezos. The suit says Trump's actions were "to harm his perceived political enemy."
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Source Fool.com