Lawsuit by amazon: court stops pentagon contract with microsoft

The Pentagon placed a major cloud contract with Microsoft, although Amazon has long been the favorite. Amazon sensed an influence from US President Trump behind it, took it to court – and won for the time being.

The US Department of Defense’s multi-billion dollar cloud contract with Microsoft has been temporarily suspended due to the lawsuit filed by competitor Amazon. The competent court granted a corresponding application for an injunction. Amazon accuses US President Donald Trump of having unlawfully interfered in the award process.

The dispute is about the so-called Jedi project to build a cloud system with which information from all branches of the armed forces is to be exchanged in one system using artificial intelligence. The ten billion dollar contract with a term of ten years surprisingly went to Microsoft last October, even though Amazon was the favorite.

Amazon suspects interference from Trump

A bitter dispute between the Amazon group and the US government has been going on for months about the award of the contract. The company of, according to "Forbes" richest people in the world, Jeff Bezos, filed a lawsuit in November.

It is of the opinion that it was not awarded the contract due to "undue pressure from Trump". This is the "most plausible" explanation for several "obvious, inexplicable" technical errors that would have led to the award to the competitor Microsoft, explained the Internet company. The US Department of Defense rejected the allegations.

Trump and Bezos have been crossed for a long time. One reason: the Amazon boss belongs to the government-critical newspaper "Washington Post", who is a thorn in the side of Trump. In the past the president repeatedly attacked Bezos – mostly via Twitter.

Lawyers demand testimony under oath

Amazon’s lawyers want the award of the contract to be checked again and a new decision made. Most recently, they even demanded that Trump testify under oath. "Much is at stake: the question is whether the President of the United States should be allowed to use the Department of Defense’s budget for his personal and political ends," it said in December.

Amazon’s web platform AWS is the clear market leader in the lucrative cloud business with IT services and storage space on the Internet.

Microsoft was disappointed with the court decision, but was certain that it would still be able to implement the project. Pentagon spokesman Robert Carver also said the department was disappointed with the court’s decision to postpone change and "deny our fighters a number of skills they desperately need." The Pentagon is sure in its decision for Microsoft.

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