- Later this year, Microsoft Corporation (NASDAQ: MSFT) is expected to push more for cloud contract efforts designed for foreign governments according to a CNBC report
Later this year, Microsoft Corporation (NASDAQ: MSFT) is expected to push more for cloud contract efforts designed for foreign governments according to a CNBC report. These efforts follow the recent $10 billion Joint Enterprise Defense Infrastructure (JEDI) contract from the U.S. Defense Department that Microsoft won against Amazon. Microsoft won the $10 billion JEDI contract in October and it was valued at $10 billion over 10 years.
The cloud infrastructure package that Microsoft will be selling to foreign governments are similar to the one that it built for the U.S. Defense Department says CNBC’s sources. Microsoft’s employees reportedly started working on cloud contracts for foreign governments as the work on JEDI is getting put on hold due to legal challenges from Amazon. This strategy highlights Microsoft’s goal of widening its cloud infrastructure operations in the public sector while also keeping a collaborative approach to the Trump administration. President Trump himself approved of Microsoft’s consideration to buy the China-owned social app company TikTok.
Another CNBC source said Microsoft already secured foreign cloud government contracts. But those deals are expected to be announced later. Following the CNBC report, Microsoft’s shares increased by over 1% after-hours on Friday.
“We’ve worked with governments around the world on a longstanding and reliable basis for four decades,” said a Microsoft spokesperson in an email to CNBC. “We have government customers using our products to enhance their services with the latest in commercial innovations, deeply engage and connect with citizens in powerful ways, and empower government employees with the modern tools they need to be more efficient and effective, and to give them time back to focus on their agency mission.”
Amazon Web Services filed a lawsuit in November protesting the government’s decision to award Microsoft the JEDI contract. And in February, Judge Patricia Campbell-Smith imposed a temporary restraining order to block the contract from moving forward for now.
Judge Campbell-Smith gave the Defense Department permission to revisit the evaluation of the bids from Microsoft and Amazon. And the Defense Department expects the review to be done by September 16.
