SPX4,228.48-55.26 -1.29%
DIA337.04-2.88 -0.85%
IXIC12,705.22-260.13 -2.01%

Microsoft Approached Google, Oracle, Other Cloud Providers To Pitch Multi-Cloud Service Providing To US: WSJ

Benzinga · 07/27/2022 14:04
  • Microsoft Corp (NASDAQ:MSFT) rallied other big-name cloud-computing providers to urge the U.S. to spread its spending on such services more widely, the Wall Street Journal reports.
  • Microsoft targeted Amazon.com Inc's (NASDAQ:AMZN) dominance in such contracts by the move.
  • The cloud-computing providers approached included Alphabet Inc's (NASDAQ:GOOG) (NASDAQ:GOOGL) Google, Oracle Corp (NYSE:ORCL), Vmware, Inc (NYSE:VMW), Dell Technologies Inc (NYSE:DELL), International Business Machines Corp (NYSE:IBM), Hewlett Packard Enterprise Co (NYSE:HPE).
  • Also Read: Department Of Defense Delays Cloud Computing Contract: What You Need To Know
  • Microsoft issued talking points to other cloud companies to lobby the U.S. jointly, requiring significant government projects to use multi-cloud service providers.
  • Amazon dominated the cloud-infrastructure industry with a 39% share of the 2021 global market, ahead of Microsoft in the second position with a 21% share.
  • Amazon's cloud had a 47% share of the 2021 U.S. and Canada public-sector market orders, ahead of 28% for Microsoft.
  • In 2021, the National Security Agency chose Amazon as the sole vendor for a cloud contract worth as much as $10 billion over the next decade, renewing an existing business relationship.
  • Cloud business is critical to Microsoft's earnings, representing half of its total sales. 
  • The Pentagon embraced a multi-cloud approach in 2021. 
  • Despite being a favorite, Amazon lost out to Microsoft for a massive Pentagon cloud-computing deal. 
  • Amazon contested the award, and the Pentagon scrapped the contract, saying it would award contracts to multiple vendors in its future agreement.
  • Previously, the Central Intelligence Agency, which had worked with Amazon for its cloud services, said it would adopt a multi-cloud strategy.
  • Recently Microsoft reported its Q4 miss justifying it with higher fluctuations in currencies and production shutdowns in China. 
  • Earlier this year, Google cloud unit formed a team to build services for developers running blockchain applications to grow its cloud share.
  • Price Action: MSFT shares traded higher by 5.24% at $265.11 on the last check Wednesday.