A chance for Microsoft to lead the race of the clouds?

Microsoft is now having a chance to beat the current cloud king Amazon with the most important cloud contract ever.

Microsoft is now having a chance to beat the current cloud king Amazon with the most important cloud contract ever.

Just six months ago, analysts believed that Amazon would be the No. 1 candidate for the $ 10 billion cloud contract with the Pentagon. But now, it seems like Microsoft is the one with the real opportunity.

Currently, the giants in the cloud computing industry, together with IBM and Oracle, are competing for the US government cloud contract called Joint Enterprise Defense Infrastructure (JEDI). This is a contract to move most of US military data to a commercial cloud provider.

Only 1 year ago, Amazon Web Services (AWS) had 80% chance of winning, while the remaining 20% belonged to Microsoft. But currently the gap has narrowed when AWS has 60% chance while Microsoft Azure's is 40%.

Analysts say the timing of the announcement of the selected supplier will be determined in the battle between the two big men. And one thing is for sure, Microsoft is having a better chance than ever. Microsoft has the opportunity to increase the winning rate in the next 6 to 8 weeks. That's why this will be a fierce battle between two Seattle brothers to win the super contract JEDI. This is the most important cloud contract ever in the history.

Microsoft CEO Satya Nadella

Microsoft is taking some steps forward. JEDI is not the final contract. In the near future, there will be more cloud contracts of the US Government. However, the announcement about the JEDI winner will be effective for many upcoming years. Because whoever winning JEDI will be more likely to win other cloud contracts with the US Government in the future.

It is estimated that these contracts are worth about $ 20 billion over the next 5 years. That is also the reason why the JEDI contract is so concerned.

In recent months, Microsoft has made steady progress with cloud service for the Government - Azure Government, which has been certified to handle information perfectly. Microsoft is also planning to win the Government's highest security authorization certification, the certification that at the moment, among all the big names in cloud computing, only AWS has one.

A chance for Microsoft to lead the race of the clouds?

Microsoft is also investing in its artificial intelligence product line. In addition, the company is strengthening its relationship with the Ministry of Defense. In early January, Microsoft also won a $ 1.76 billion contract with the software development service department.

Amazon could become a cloud provider for the Government, because it had previously won a $ 600 million contract with the CIA. However, Microsoft's relationship with the Ministry of Defense has lasted more than 40 years, from the days the company was founded. Microsoft also has a lot of relationships with IT consultants and system administrators, who help government agencies (like the Ministry of Defense) to apply new technology. Although Microsoft may experience a slight disadvantage compared to Amazon and AWS from a service perspective, Microsoft is indeed in a strong position in its partner network.

AWS knows that Microsoft is catching up in this race. Therefore, it is no coincidence that Amazon announced the opening of a new headquarters near Washington D.C, along with the expansion of its cooperation with VMware.

Suppliers are in fierce competition. While AWS saw 45% growth over the previous year, Microsoft Azure's growth rate was 76%. Google soon gave up in this JEDI race.

By: Jonath Martin