Back in March, it appeared Amazon had hit a home run with a $600 million cloud computing deal with the CIA.
Now, though, the Seattle online giant could be left with nothing.
IBM, a company with longstanding partnerships with government agencies, protested the contract and now the CIA is reviewing a recommendation by the Government Accountability Office that the CIA should reopen negotiations.
Amazon is a new player in the government sector and particularly in the security/intelligence realm, one that’s been dominated by traditional companies like IBM and HP. When Amazon’s deal with the CIA was first announced, Federal Computer Week’s Frank Konkel reported that Amazon would help the CIA “build a private cloud infrastructure that helps the agency keep up with emerging technologies like big data in a cost-effective manner not possible under the CIA’s previous cloud efforts.”
The deal with the CIA would have also likely opened up several more opportunities for Amazon’s cloud business in the government arena, along with other companies looking for cloud solutions.
The CIA has 60 days to decide on the GAO’s recommendation, the Wall Street Journal reported. Speaking of government agencies and security, Amazon has been noticeably absent from the U.S. government’s cyber-spying program.
Last year, Amazon scored a big win with a 5-year, $16.5 million contract to Amazon.com to put tens of thousands Kindles into educational centers around the world — but, similar to what’s happening with the CIA contract, the U.S. State Department later pulled the plug on the deal and put the business back out to bid.
Previously on GeekWire: Cybersecurity: What U.S. businesses can expect from U.S.-China talks, amid brewing NSA controversy
