Nearly $8 billion gov deal won by three Microsoft vendors

Three Microsoft vendors: General Dynamics Corp, Dell Marketing and Minburn Technology Group win a $7.6 billion computing contact which will provide Microsoft office software for the Pentagon and all US military. The announcement was made on Thursday, August 29, 2019. The trio is the latest 

cue that cloud-computing leaders of the industry are preferred by the US military. This is a shift in the Department of Defense (DOD) after many years of using Oracle Corp and International Business Machines (IBM) technology.

The federal government’s massive award, a 10 year deal, was announced by both the DOD and the General Services Administration (GSA). This coveted award, the Defense Enterprise Office Solution (DEOS), came on the heels of a month’s-long evaluation process by the GSA and DEOS will provide email, messaging, video-calling, calendar, content management functions, collaborative tools like web conferencing and several other productivity tools to the Pentagon and all its military divisions which will include approximately 3 million DOD users.

DOD Chief Information Officer, Dana Deasy, commented that that the DEOS fit-for-purpose cloud award fits the military’s multi-cloud strategy and will streamline all its uses of cloud email and collaborative tools while at the same time providing information sharing and cybersecurity which will be based on standardized needs and market offerings.

General Dynamics leads the deal in that its subsidiary, GDIT which it acquired for $9.7 billion last year includes Dell and Minburn.

DEOS is the Pentagon’s second-biggest cloud contract. Come September though an even larger deal of approximately $10 billion – the Joint Enterprise Defense Infrastructure (JEDI),is expected to be awarded by the DOD. Businesses who made the final cut for the running are Microsoft and Amazon. 

Oracle and IBM, both of whom the DOD has worked with for many years, were eliminated from the competition earlier this year and Oracle sued. Oracle’s claim that Amazon had a conflict of interest giving Amazon an unfair advantage however, was dismissed by a judge last month.

However, Oracle says it will appeal the decision for the JEDI award continuing to claim that on several grounds the award was acquired unlawfully.

According to several analysts and Wedbush Securities’, Daniel Ives, Beltway informers say that although Amazon has been considered the favorite to get the JEDI deal, Microsoft has a good chance as well because it has been making steady and impressive progress.

No matter who is awarded JEDI, the two massive deals reveal the shift at the DOD in its selection of whom it will work with post Oracle and IBM and it’s preference for cloud-computing leaders.