Aerial of Pentagon building in United States
Technology

Pentagon Awards Microsoft $10bn Cloud-Computing Contract

The US Department of Defense aims to replace its computer networks with a single cloud system.

Aerial of Pentagon building in United States

(Picture: PA).

The US Department of Defense has awarded a $10bn (£8bn) enterprise general-purpose cloud contract to Microsoft.

The contract for the Joint Enterprise Defense Infrastructure (JEDI) will address "critical and urgent unmet warfighter requirements for modern cloud infrastructure" at three different classification levels, the Pentagon announced on Friday.

"The National Defense Strategy dictates that we must improve the speed and effectiveness with which we develop and deploy modernised technical capabilities to our women and men in uniform," DOD Chief Information Officer Dana Deasy said in a statement.

"This award is an important step in [the] execution of the Digital Modernisation Strategy."

The award is the conclusion of a process that began with the release of the first requests of proposals to industry nearly two years ago.

At the outset, the competition included four different bidders.

All bidders were "treated fairly" and "evaluated consistently with the solicitation’s stated evaluation criteria", the Pentagon said.

The base contract period for the Joint Enterprise Defense Infrastructure is two years, with a $1m (£780,000) guarantee.