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Microsoft accuses Amazon of using 'politicized rhetoric' about Trump to distract from its surprise loss of the $10 billion JEDI contract

Feb 11, 2020, 23:18 IST
  • Microsoft fired back at Amazon in their legal duel over JEDI, saying the cloud giant's protest is based on "sensationalist and politicized rhetoric.
  • Amazon is challenging the Pentagon's decision to award the $10 billion Joint Enterprise Defense Infrastructure, or JEDI, project to Microsoft. Amazon argued in a filing on Monday that President Trump's animosity toward Amazon founder and CEO Jeff Bezos played a role in the DoD's decision.
  • But Microsoft challenged that argument in a separate, saying, "Without a compelling case on the merits of a traditional bid protest, Amazon Web Services tries to make this case all about President Trump.
  • Microsoft argued that Amazon "has alleged zero facts -- nothing -- plausibly indicating" the Pentagon was influenced by Trump's statements.
  • Click here for more BI Prime stories.

Microsoft is hitting back at Amazon in a feud over the Pentagon's $10 billion cloud computing contract, accusing Amazon of "sensationalist and politicized rhetoric."

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The objectionable "rhetoric" came via an Amazon court filing on Monday, in which Amazon claimed it was passed over for the lucrative JEDI contract because of President Trump's disdain for Amazon CEO Jeff Bezos. Amazon cited a "well-documented personal animus towards Mr. Bezos, Amazon, and the Washington Post," in its legal filing, seeking to appeal the Pentagon's contract decision.

But Microsoft, which considers the JEDI contract a huge endorsement of its cloud computing services, was having none of it and said that Amazon is effectively a sore loser looking for excuses.

"Without a compelling case on the merits of a traditional bid protest, [Amazon Web Services] tries to make this case all about Trump," Microsoft said.

"This case was brought up in sensationalist and politicized rhetoric designed to distract from the fundamental weakness of [Amazon's] underlying bid protest claims," Microsoft said on Monday.

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The tit-for-tat underscores the huge stakes in the technology that will store store and manage sensitive military and defense data. Tech industry analysts say the project could be a game changer in the cloud, where Amazon, Microsoft and Google are the top competitors.

The Defense Department's decision last year to award the $10 billion Joint Enterprise Defense Infrastructure to Microsoft was a stunning blow to Amazon, the most dominant player in the cloud, which was widely expected to win.

Microsoft argued that Amazon had opportunities to raise its concerns about Trump's public comments, but failed to do so. In fact, Amazon even publicly defended the procurement process when it was being challenged by Oracle.

Oracle's bid had been rejected by the DoD, but the company challenged the decision to name Microsoft and Amazon as the finalists.

Got a tip about Microsoft, Amazon or another tech company? Contact this reporter via email at bpimentel@businessinsider.com, message him on Twitter @benpimentel or send him a secure message through Signal at (510) 731-8429. You can also contact Business Insider securely via SecureDrop.

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