Amazon.com, Inc (NASDAQ:AMZN) Delays Microsoft Corporation (NASDAQ:MSFT) From Working On JEDI Contract

Amazon.com, Inc (NASDAQ:AMZN) was dissatisfied with the way Microsoft Corporation (NASDAQ:MSFT) was awarded the Joint Enterprise Defense Infrastructure (JEDI) contract. This time around, the giant retailer seeks to have the court block the rival company from working on the contract temporarily. This is a cloud computing contract for the military that is worth almost $10 billion.

Amazon stages great opposition

Sources indicate that Microsoft was set to begin working on the contract in February, but that might not be possible. As mentioned earlier, Amazon’s cloud computing division rushed to court, and it sought a preliminary injunction. This is what it takes for Microsoft to be barred from engaging in any substantive orders in line with the contract.

Then request by Amazon is dated January 24, and a lot of people are looking forward to seeing how matters turn out.

Analysts have been speaking about the matter, and they have been trying to establish whether or not Trump is to blame. The company thought that the Trump administration had not been fair and professional in awarding Microsoft the contract.

Amazon believes it was double-crossed

Amazon had a point considering that it had been a front runner in winning the Jedi contract.

Trump and the Amazon CEO Jeff Bezos have always been at loggerheads, and this may have led to Microsoft winning the contact. The Washington Post that has been criticizing Trump for long belongs to Bezos, and Trump might have had his reservations.

JEDI focuses on service delivery, where its safety stores important and sensitive military and technological data. Artificial intelligence is the one important part, and that serves the Department of Defense just right.

Trump denied the allegations, but the Defense Department decided to review the controversial contract. Mark Esper, who happens to be the current Defense Secretary, seems to have foreseen a looming conflict of interests. The official has a son working for one of the companies fighting over the contract and did not want to be a part of the review. He did not want to compromise the decision and thus pulled out a month before the time.

Pentagon defended its decision saying that it had been looking out for the interests of the country’s disciplined forces.

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