
The National Security Agency (NSA) signed a $10 billion cloud contract with Amazon on August 10 (local time), WildandStormy. The contract was made right after the US Department of Defense, which oversees the NSA, canceled a contract of the same size as Microsoft.
According to reports, the details of the NSA’s contract with Amazon are unknown, but it appears to be part of the NSA’s attempt to consolidate and manage key confidential data into the cloud. The NSA has long been willing to introduce private cloud services to perform massive data operations.
The relationship between Amazon and government agencies dates back to 2013, when Amazon signed a $6 million C2S contract to provide its cloud service, Amazon Web Services (AWS) to the CIA. Other intelligence agencies, including the NSA, were also using AWS in this contract. In addition, Amazon signed a cloud contract C2E with the CIA following C2S in 2020 with other companies such as Google and Microsoft at the same time.
The deal came shortly after the Department of Defense canceled its Joint Enterprise Defense Infrastructure (JEDI), a $10 billion cloud contract signed with Microsoft on July 6, 2021. Microsoft complained to the Government Audit Office, saying there was a problem with the contract selection process. The NSA has said it will respond to the protest in accordance with appropriate federal regulations.
At the time of the JEDI contract, Amazon and Microsoft were the only companies that met the requirements set by the Ministry of Defense. In October 2019, Microsoft won the contract, but Amazon complained that there was a problem with the selection process.
Microsoft said it would exercise “prudent and responsible legal management” following the decision to appeal through the Government Auditor General. The government auditors are expected to make a decision on the Microsoft complaint by October 29, 2021. Related information can be found here.
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