Hybrid contract schedules completion for 2028
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.
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.
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.