Amazon.com, Inc (NASDAQ:AMZN) not in stealth mode with CIA stealth cloud

Posted by Michael Korte July 26, 2013 0 Comment 1166 views


The CIA stealth cloud is resonating with the Amazon.com, Inc (NASDAQ:AMZN) and IBM thunder as the two companies fight it out for the coveted task. AMZN has won the contract to build the cloud in 2012. Now that IBM has entered the fray, it is creating the biggest racket possible. The company has now filed a complaint against IBM, in the United States Court of Federal Claims. It is saying that the CIA has made the right choice the first time around.

Amazon’s win then had been pretty amazing considering the fact that Amazon was the monarch of the public cloud while IBM is a private one. The former had to work really hard at proving that it was cloud-worthy and that it had the capacity to handle the kind of sensitive workloads that the CIA has. What was interesting is that though Amazon’s bid had been $54M above the one that IBM has put forth, it still won hands-down. Amazon has always touted itself as a low-cost provider and it probably needs to be thinking about where that philosophy vanished.

It was only in early June that this price discrepancy was noted by the Government Accountability Office and it recommended that the CIA revisit the process. The CIA followed the recommendations that had been provided by the GAO but it is still not clear as to which company will be picked.

This war indicates exactly how much weightage Amazon holds in the cloud arena. If it ends up winning the duel against IBM who is the IT enterprise king, it will prove beyond doubt that the company has the ability to handle the most-sensitive workloads and data. This is definite leverage when it comes to selling AWS for different compliance and security conscious accounts. The battle of the giants is now out in the open and may the best cloud provider win.


About Michael Korte

Michael Korte an investigative reporter at GDP Insider and is a breaking news reporter. Michael work includes investigations of misconduct by federal prosecutors and industrial air pollution around the nation's schools. His reporting has been recognized with the Hillman Prize for Newspaper Journalism, the Grantham Prize for Excellence in Reporting on the Environment, and the Philip Meyer Journalism Award for reporting that incorporates social science methods.

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