Analysts Point Finger At Trump’s Role, But Expertise In Legacy IT Environment Helped Microsoft Corporation (NASDAQ:MSFT) Win $10 Billion JEDI Contract

Microsoft Corporation (NASDAQ:MSFT) has experience in executing several defense projects. The company can modernize the IT infrastructure using its Azure Cloud Platform. The Department of Defense favored Microsoft for the $10 billion JEDI deal over Amazon AWS because of the capability of Microsoft rationalize and manage legacy footprint. Microsoft has put in significant efforts to compete with Amazon AWS and qualify in the JEDI Process. It is more alluring to the clients in the public sectors.

Microsoft possesses compliance certifications

Analysts at Oppenheimer said Microsoft worked prudently to improve its appeal to industries such as financial institutions, healthcare, and government. The company possesses the required compliance/ governance certifications to appeal to these industries.

Some analysts say Trump influenced the deal

According to some analysts, Trump’s ire towards the CEO, Jeff Bezos, of Amazon, and publishing of reports about Trump in Washington Post have caused the loss for Amazon AWS. Jeff Bezos owned Washington Post, which published reports that criticizes or throw dust on Trump, might have played the spoilsport for Amazon in losing the prestigious JEDI contract.

According to sources, Trump ordered James Mattis, the former defense secretary, to kick out Amazon from the deal even before he planned to scuttle the process in early 2019 to prevent Amazon from winning the contract. The Virginia Democrat: Sen. Mark Warner in August 2019 said Trump is using his influence to penalize the media. However, some Wall Street analysts and industry experts ruled out the influence of Trump and said Microsoft won the contract on its merits.

An analyst of federal spending at Bloomberg, James Bach, said he hesitates to say that Trump is behind Amazon’s loss. Microsoft has the ability to win this defense deal with no influence. Bach said it is atypical for the president to involve in this military contract.

In an interview with Business Insider, the principal analyst, and founding partner at Futurum Research, Daniel New Man said the involvement of Trump could have influenced the outcome of the deal. He is disappointed to see that the award is not made strictly on the best solution offered.

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