Amazon Asks Court to Pause Microsoft’s Pentagon Cloud Contract: Should Investors Be Worried?
Amazon (NASDAQ: AMZN) says it isn't willing to give up on winning a 10-year, $10 billion Pentagon cloud computing contract it lost to Microsoft (NASDAQ: MSFT) last year. The Pentagon says Microsoft won it fair and square, but Amazon doesn't agree. The tech giant claims political bias and last week it asked a U.S. federal court to stop the deal from moving forward while it works to settle a lawsuit over how the deal was reached.
Last Wednesday's court filing sent shares of Microsoft down in after-hours action, as investors worried the software giant could lose the lucrative and door-opening contract. After all, as a distant second-place player in the cloud computing market, Microsoft has a lot more to lose than Amazon Web Services (AWS), Amazon's cloud computing segment.
Here's what this latest development means for Amazon and for Microsoft.
Source Fool.com
