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

Google, Oracle Corp., Amazon.com 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,
-2.22%

GOOGLE,
-2.10%,
OracleORCL,
-0.16%,
MicrosoftMSFT,
-0.31%,
AmazonAMZN,
+0.24%
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,
-0.16%,
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,
+0.00%
has fallen 7.5% in the S&P 500 SPX index,
-0.19%
fell 17.5%, and the tech-heavy Nasdaq Composite Index COMP
-0.51%
decreased by 30 per cent. IBM stock is a tech outlier in 2022, up 10.2% on the year.

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