Amazon.com Inc's firm grip on the cloud computing market could be threatene...
FILE PHOTO: A Microsoft logo is seen next to a cloud in Los Angeles, California, U.S. on June 14, 2016. REUTERS/Lucy Nicholson/File Photo Last week, Microsoft won the Pentagon contract termed Joint Enterprise Defense Infrastructure Cloud, or JEDI, that will be worth up to $10 billion over a period of 10 years, beating out favorite Amazon’s AWS.
“Bottom line, the contract is a significant win for Microsoft and vaults Azure forward in the cloud platform wars,” J.P. Morgan analyst Mark Murphy said. Amazon’s Amazon Web Services currently holds about 32% of the cloud computing market, while Microsoft’s Azure has about 18%, according to research firm Canalys. While AWS contributes nearly 13% to Amazon’s total net sales, Azure accounts for about 33% of Microsoft’s revenue and are both a major cash cow for the companies. Friday’s decision came after months of controversy and protest over the process for awarding the deal and even drawing the attention of President Donald Trump, who has publicly taken swipes at Amazon, long considered the frontrunner. Analysts at brokerage firm Compass Point said the deal was a “significant victory” for Microsoft over AWS and added that Amazon could challenge the decision. “We expect a degree of handwringing among Congressional Democrats given the political and practical dimensions of this issue, but our sense is that lawmakers are unlikely to wade too deeply into these waters,” Compass Point’s Marshall Senk said. Brokerages Mizuho and Independent Research raised their price target on the Microsoft stock at the prospect of the company getting a boost from the contract. “In the end, the fact that Azure was chosen as the sole provider for this important project is a testament to just how far it has come over the past couple of years,” said Mizuho analyst Gregg Moskowitz, who raised his price target by $8 to $160. Wedbush analyst Daniel Ives noted that the deal helps Microsoft gain a bigger chunk of an estimated $1 trillion of next decade cloud business and $100 billion of U.S. government business.Our Standards:
Trending
A gorgeous April afternoon in store across the Denver metro area 
‘Artemis Mission Cannot Lead To Interplanetary Wild West,’ Astronomer Warns 
Trump says US forces will ‘finish the job’ soon in first prime-time speech since starting Iran war 
Former Wisconsin football player, who left the sport amid mental health struggles, dead at 24 
Drew McIntyre Gives Honest Take About His Recent WWE Title Reign 
U.S. Sen. Bernie Sanders introduces bill that could keep the Padres in San Diego United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Key dates leading up to the U.S. Pentagon's cloud-computing award to MicrosoftMicrosoft Corp has won the U.S. Pentagon's $10 billion cloud-computing cont...
Read more »
Microsoft’s Challenge of Amazon in the Cloud Gains ForceMicrosoft’s win of a landmark Pentagon cloud-computing contract adds force to the software giant’s effort to unseat Amazon.com as the undisputed leader in the multibillion-dollar cloud-computing market.
Read more »
Microsoft is set for a record open after beating Amazon to a controversial contract with the Pentagon worth $10 billionThe contract is for Microsoft's cloud computing services but could face further competition from Amazon according to Bloomberg.
Read more »
Microsoft beats Amazon for Pentagon's $10 billion cloud computing contractICYMI: Microsoft won the Pentagon's $10 billion cloud computing contract, beating out favorite Amazon. In a statement, an Amazon Web Services spokesman said the company was ‘surprised about this conclusion’
Read more »
The Force is with Microsoft: Shares up on winning JEDI contractMicrosoft shares rise 3.4% to $145.50 premarket, after company wins the Pentagon...
Read more »
Amazon could challenge loss of $10 billion Pentagon cloud deal as early as next weekIf Amazon.com decides to fight the Pentagon's decision to award a highly co...
Read more »