Google, Oracle, Amazon and Microsoft share $9 billion defense contract for ‘Return of JEDI’

Google, Oracle Corp., Inc. and Microsoft Corp. from Alphabet Inc. will share a $9 billion hybrid contract to provide secure cloud services to the Pentagon worldwide, the Defense Department announced Wednesday.

In the Pentagon’s daily contract announcements, Alphabet GOOG,

was jointly designated to provide the Department of Defense with its Joint Combat Cloud capability, with work to be performed in Reston, Va., and completed by June 8, 2028.

Lily: Return of the JEDI: Why the Army Cloud Deal Sequel could cost much more than the $10 billion original

The JWCC has been dubbed the “return of JEDI,” the Joint Enterprise Defense Infrastructure sole-source contract that was eventually awarded to Microsoft in 2019 and then canceled in July.

Lily: IBM buys software company Octo from Arlington Partners to expand federal government services

It is evidently missing from the International Business Machines Corp. contract. IBM,
which provides hybrid cloud services and announced Wednesday its eighth acquisition of the year for its consulting business: Octo, based in Reston, Va., which caters to federal agencies for digital modernization services.

For the year, Alphabet stock is down 34.2%, Oracle is down 9.7%, Microsoft is down 27.3% and Amazon is down 46.9%. Meanwhile, the Dow Jones Industrial Average DJIA,
has fallen 7.5% in the S&P 500 SPX index,
fell 17.5%, and the tech-heavy Nasdaq Composite Index COMP
decreased by 30 per cent. IBM stock is a tech outlier in 2022, up 10.2% on the year.

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