Pentagon cancels embattled $10B JEDI cloud contract with Microsoft

The Department of Defense has canceled its cloud-computing contract with Microsoft that could have been worth $10 billion citing tech advances and different needs.

After years of legal wrangling, the Department of Defense has canceled its cloud-computing contract with Microsoft that could have been worth $10 billion. The contract to build a cloud-computing system for the Pentagon was the subject of a lengthy legal battle, as Amazon alleged it was passed over for the lucrative deal due to political reasons. The Department of Defense did not mention the legal battle, but said the contract was canceled due to evolving requirements, tech advances and different needs than when the contract was first offered. "With the shifting technology environment, it has become clear that the JEDI Cloud contract, which has long been delayed, no longer meets the requirements to fill the DoD’s capability gaps," a DoD spokesperson said in a statement.