The Pentagon may end Project JEDI after exhausting worse options. The $10 billion contract to consolidate military data under one cloud provider was controversial from the start, writes rob_cyran on Capital Calls.
One possible result is to contract with both companies, and maybe others too. Redundancy is as sensible for the military as it is for the private sector. Multiple suppliers would help end current litigation and reduce long-run costs. It’s also easier to get lawmakers on side when work is split between vendors.
The direct financial effects aren’t huge. At a 30% operating margin, what Amazon Web Services earns, the net profit from JEDI would be worth less than $2 billion in present value terms. That's minimal for $1.9 trillion Microsoft or $1.6 trillion Amazon . Of course, contracts may be extended, and government cloud business can only grow. Better to spread it around from the start.
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