Microsoft, Amazon to Split Contract as $10 Billion Deal Canceled

The Defense Department will pivot to a new enterprise cloud contract after canceling its embattled $10 billion cloud award to Microsoft Corp.

Instead, the Pentagon will split the work with Microsoft, Amazon Web Services Inc., and possibly three other U.S. providers, senior Pentagon officials announced.

Microsoft and AWS are the only two vendors capable of meeting the Pentagon’s cloud requirements, Acting Pentagon chief information officer John Sherman told reporters Tuesday. Awards could come as early as 2022, he said.

Pentagon leaders launched the Joint Enterprise Defense Infrastructure cloud program in 2017. The U.S. military, a prolific producer and ...