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The Pentagon's JEDI Contract Is Dead -- but It Will Return

The Pentagon has pulled the plug on a controversial $10 billion enterprise cloud contract awarded to Microsoft (NASDAQ: MSFT), ending a four-year-old effort that has been stuck in neutral because of legal challenges brought by (NASDAQ: AMZN).

The Joint Enterprise Defense Infrastructure (JEDI) contract was an ambitious attempt to bring thousands of Department of Defense systems under one umbrella and give U.S. warfighters a real-time data advantage on the battlefield. But it has been marred by controversy since its early days, and military officials eventually decided it was best to hit the "reset" button.

"JEDI was developed at a time when the Department's needs were different," John Sherman, acting Department of Defense chief information officer, said in a statement. "In light of new initiatives like JADC2 and AI and Data Acceleration (ADA), the evolution of the cloud ecosystem within DoD, and changes in user requirements to leverage multiple cloud environments to execute mission, our landscape has advanced and a new way-ahead is warranted to achieve dominance in both traditional and non-traditional warfighting domains."

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