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Google, Oracle, Amazon, Microsoft to share $9 billion ‘return of JEDI’ defense contract – News Opener

Alphabet Inc.’s Google, Oracle Corp., Amazon.com Inc., and Microsoft Corp. will share a $9 billion hybrid contract to provide secure cloud services for the Pentagon worldwide, the Department of Defense said Wednesday.

In the Pentagon’s daily contract announcements, Alphabet
GOOG,
-2.22%

 
GOOGL,
-2.10%
,
Oracle
ORCL,
-0.16%
,
Microsoft
MSFT,
-0.31%
,
Amazon
AMZN,
+0.24%

were jointly named to provide the Defense Department with its Joint Warfighting Cloud Capability, with the work to be performed in Reston, Va. and completed by June 8, 2028.

Read: The return of JEDI: Why the sequel to military’s cloud contract could cost much more than the $10 billion original

The JWCC has been referred to as the “return of JEDI,” the Joint Enterprise Defense Infrastructure sole-vendor contract that eventually got awarded to Microsoft in 2019, and then was cancelled in July.

Read: IBM acquires software company Octo from Arlington Partners to expand federal government services

Noticeably missing from the contract is International Business Machines Corp.
IBM,
-0.16%
,
which provides hybrid cloud services and which announced Wednesday its eighth acquisition of the year for it consulting business: Reston, Va.-based Octo, which caters to federal agencies for digital modernization services.

For the year, Alphabet shares are down 34.2%, Oracle has declined 9.7%, Microsoft has fallen 27.3%, and Amazon is off 46.9%. Meanwhile, the Dow Jones Industrial Average
DJIA,
+0.00%

is down 7.5% the S&P 500 index
SPX,
-0.19%

has fallen 17.5%, and the tech-heavy Nasdaq Composite Index
COMP,
-0.51%

has dropped 30%. IBM shares are a tech outlier in 2022, with a 10.2% gain on the year.

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