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Politics

Microsoft challenges NSA cloud contract reportedly awarded to Amazon

President Donald Trump speaks on Jan.

Jabin Botsford | The Washington Post | Getty Images

Microsoft has filed a protest against the National Security Agency at the Government Accountability Office and challenged the award of a cloud computing contract.

The protest filed on July 21 is intended to challenge the NSA’s decision to award the $ 10 billion contract to Amazon, the journals Nextgov and Washington Technology reported on Tuesday.

The NSA deal with Amazon follows the Pentagon’s decision to terminate its $ 10 billion cloud contract known as JEDI, or Joint Enterprise Defense Infrastructure. The JEDI deal, embroiled in a lengthy legal battle between tech giants Amazon and Microsoft, had become one of the most tangled contracts for the Pentagon.

The NSA contract, which is also up to 10 billion US dollars, is code-named “WildandStormy” and is intended to modernize the agency’s secret data storage, reported Nextgov.

In a statement to CNBC, a spokesman for the NSA said the agency “recently placed a contract for cloud computing services” and declined to elaborate on the matter.

“The unsuccessful provider has filed a protest with the Government Accountability Office. The agency will respond to the protest in accordance with applicable federal regulations,” added the spokesman.

A Microsoft spokesman told CNBC in a statement: “Based on the decision, we are filing an administrative protest through the Government Accountability Office. We exercise our legal rights and will do so carefully and responsibly. “

Amazon Web Services, the company’s cloud computing unit, referred questions to the NSA.

The lucrative JEDI cloud contract was intended to modernize the IT operations of the Pentagon for services provided for up to 10 years. Microsoft received the cloud computing contract in 2019, beating the market leader AWS.

A month later, AWS filed a lawsuit in the US Federal Court to protest the JEDI decision.

The company argued that former President Donald Trump was biased against Amazon, and that its then CEO Jeff Bezos lobbied the Pentagon to give the contract to Microsoft.

Last year the Pentagon inspector general released a report that the award did not appear to have been influenced by the White House.

However, the Inspector General noted in the 313-page report released in April 2020 that he had limited cooperation with White House officials throughout his review and was therefore unable to complete his assessment of the ethical misconduct allegations.

A Pentagon official said on a call with reporters that the litigation itself is not necessarily the main reason for the change in approach. Given that the landscape had changed in the meantime, the agency found that their needs had changed too.

– CNBC’s Jordan Novet and Lauren Feiner contributed to this article.

WATCH: Department of Defense Chief Information Officer on the decision to terminate the JEDI program

Categories
Politics

Pentagon cancels $10 billion JEDI cloud contract

The Department of Defense announced Tuesday that it is canceling the $ 10 billion cloud contract that has been the subject of a legal battle between Amazon and Microsoft. But it is also announcing a new contract and soliciting suggestions from both cloud service providers, where both will likely get a reward.

The Joint Enterprise Defense Infrastructure (JEDI) deal has become one of the most tangled contracts for the Department of Defense. In a press release on Tuesday, the Pentagon said that “the JEDI cloud contract no longer meets its requirements due to evolving requirements, increased cloud capabilities and advances in the industry.”

Microsoft stocks lost about 0.4% after the news and Amazon stocks rose 3.5% after hitting a 52-week high.

The battle for a cloud computing project doesn’t seem to be over yet. The Pentagon said in the press release that it continues to need enterprise-level cloud capabilities and announced a new multi-vendor contract known as the Joint Warfighter Cloud Capability.

The agency said it plans to seek proposals for the contract from both Amazon and Microsoft, adding that they are the only cloud service providers that can meet their needs. But, it added, it will continue to do market research to see if others could meet its specifications as well.

The lucrative JEDI contract was intended to modernize the IT operations of the Pentagon for services provided for up to 10 years. Microsoft received the cloud computing contract in 2019, beating the market leader Amazon Web Services.

A month later, Amazon’s cloud computing unit filed a lawsuit in the US federal court to protest the JEDI decision.

The company argued that President Donald Trump’s bias towards Amazon and its CEO Jeff Bezos influenced the Pentagon to hand over the contract to Microsoft.

Last year the Pentagon Inspector General released a report that the award did not appear to have been influenced by the White House.

However, the Inspector General noted in the 313-page report released in April 2020 that he had had limited cooperation with White House officials throughout his review and was therefore unable to complete his assessment of the ethical misconduct allegations.

Microsoft said in a blog post it understood the Pentagon’s decision to terminate the JEDI contract, but said the litigation over it was a need for reform.

“The 20 months since the DoD selected Microsoft as a JEDI partner highlight issues that deserve policymakers’ attention: If a company can postpone critical technology upgrades for those who defend our nation for years, the protest process must reformed, “said Toni Townes-Whitley, president of US Regulated Industries at Microsoft, wrote.

Townes-Whitley added that the DoD’s decision “does nothing to change the fact that, after careful review by professional procurement personnel, the DoD decided that Microsoft and our technology best met their needs, not just once, but twice. The Inspector General’s finding that there has been no evidence of interference in the procurement process and does not change the fact that the DoD and other federal agencies – large corporations, in fact, around the world – select Microsoft to meet their cloud computing and digital transformation needs on a regular basis. “

Amazon did not immediately respond to CNBC’s request for comment.

A Pentagon official said on a call with reporters that the litigation itself is not necessarily the main reason for the change in approach. But since the landscape has changed in the meantime, the agency found that their needs had changed.

“Mission needs were our primary reason for doing this,” said John Sherman, DoD deputy chief information officer.

The DoD said that for the new contract, its cloud provider must meet several criteria, such as working at all three classification levels (i.e. unclassified, secret or top secret), available worldwide, and having top-notch cybersecurity controls.

The agency said it expects the contract to be worth billions, although it is still setting the maximum. The contract should last up to five years, including a three-year performance base period and two one-year option periods.

The Pentagon expects the JWCC “to be a bridge to our longer-term approach,” said Sherman. He said the department expects to see the direct rewards from the contract around April 2022 and open wider competition as early as 2025.

This story will be updated. Check back for updates.

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WATCH: How Amazon Web Services is moving massive amounts of data to the cloud

Categories
Business

Snowflake CEO urges buyers to be affected person with inventory throughout cloud transition

Snowflake CEO Frank Slootman said Wednesday that shareholders need to be patient with the company’s stock because the cloud transition is not happening overnight.

“Our business is really going to conduct itself really over considerable, long periods of time,” Slootman said in an interview with CNBC’s Jim Cramer on “Mad Money.” “That’s sort of the message to investors to really understand we’re signing on here for a journey that’s five to 10 years.”

The comments came as shares of Snowflake tumbled as much as 8% in extended trading after the company reported fiscal first-quarter results.

While revenue grew 110% year over year to a better-than-expected $228.9 million, the data-analytics software firm also reported a net loss of $203.2 million. That’s up from $93.6 million in the same period a year earlier. At the same time, Snowflake also raised its full-year guidance for product revenue.

Snowflake went public in September in a record-breaking IPO, with shares closing that initial trading day at $253.93. However, the stock was below that level at Wednesday’s close. Snowflake shares are also down 16% year to date, as investors have rotated out of high-flying growth names into economically sensitive companies that stand to benefit from the Covid recovery.

Despite the recent moves on Wall Street, Slootman stressed that the company’s software is only becoming more important as enterprises shift away from databases tied to hardware.

“These are big, big changes that we are experiencing in the marketplace, and we’re just super happy to be in the middle of that and be an enabler of that,” he said, adding that Snowflake places its focus on growing at scale. “We’re not a growth-at-all-costs company.”

Categories
Business

Five9 CEO says development is accelerating as cloud adoption sees new part

Five9 has taken on a new growth spurt after cloud services became the standard for businesses, CEO Rowan Trollope told CNBC on Friday.

Digital transformation has forced companies to rethink their customer relationship strategies, which has resulted in 45% revenue growth in the last quarter for Five9, a cloud contact center platform.

“The evangelism phase for cloud software is really over,” he told Jim Cramer to Mad Money. “We no longer have to convince customers that cloud is an acceptable option. They just dive in.”

Demand for cloud services and technology stocks increased when society switched to remote working and schooling during the Covid-19 restrictions last year. As more and more companies went online, they began to move away from traditional call tone call center operations and include automated services and text services.

According to Trollope, Five9 signed two of its largest contracts during the reporting period, which together are expected to generate more than $ 20 million annually.

“AI and automation are leading the way with large customers right now,” he said. “The contact center has become the new entrance door for many companies, especially because they want to use digital channels.”

Five9’s business has accelerated steadily since the pandemic began. The company posted revenue of $ 137.88 million for the first quarter, up from 27.6% a year earlier. The growth was 38.6% in the fourth quarter and 33.9% in the third quarter.

Five9’s shares were up 3% on Friday, trading at $ 164.50. The stock is down 17% from its March highs, driven by a broader decline in technology stocks.

Categories
World News

Modi’s Occasion Is Set to Lose a Key Election, Held Beneath the Cloud of Covid

NEW DELHI – One of India’s liveliest opposition parties led the first results of the West Bengal state election on Sunday, a closely watched race that took place during a catastrophic spike in Covid-19 infections.

In West Bengal, one of the most populous states in India and a stronghold of the opposition to the powerful Prime Minister Narendra Modi, top parties had fought tirelessly. Even as cases skyrocketed and more people died across India, Mr. Modi and other politicians held enormous rallies across the state, which critics say contributed to the spread of the disease.

By early Sunday afternoon, Mr. Modi’s Bharatiya Janata Party was behind schedule despite their heavy investment in West Bengal, a prize they dearly wanted to win. The party is likely to win more seats in the state assembly than in the last election – a sign of how dominant it has become nationwide. Even so, the All India Trinamool Congress Party, which holds power in the state, certainly seemed to be ahead.

This party is led by Mamata Banerjee, India’s only female prime minister who has developed her own personality cult and reputation as a street fighter strong enough to fend off the BJP’s withered attacks, as is widely known by Mr Modi’s Hindu nationalist party .

Three other states and one federal area also released early election results on Sunday that contained few surprises.

Kerala in the south seemed likely to remain under the control of the Left Democratic Front, an alliance of centrist and leftist parties.

Tamil Nadu, also in the south and home to some of India’s most innovative tech companies, is likely controlled by the centrist alliance Dravida Munnetra Kazhagam, according to polls on the exit.

Assam, a northeastern region plagued by some very divisive religious and civic issues, will remain a stronghold of the BJP

And a regional party affiliated with the BJP appeared to be firmly in the lead in Puducherry, a former French colony on the east coast of India that is now controlled by the central government.

“Early trends suggest that Modi’s personal, divisive and aggressive campaign in West Bengal has not produced the expected results,” said Gilles Verniers, professor of political science at Ashoka University near New Delhi. “The BJP has failed to gain a foothold in the south, which shows that nationalist rhetoric alone is not enough to expand the base of the BJP.”

Many Indians were stunned that these elections were actually being held. The country is facing the biggest crisis in decades. A second wave of the coronavirus is causing major illness and death. Hospitals are so full that people die on the streets.

The cremation sites work day and night and burn thousands of bodies. New Delhi is suffering from an acute shortage of medical oxygen and dozens have died gasping for breath in their hospital beds.

On Sunday, India reported around 400,000 new infections and nearly 3,700 deaths, the highest daily number to date. Experts say that this is a tremendously outnumbered number and that the actual toll is far higher.

Mr Modi was due to meet with his health minister on Sunday to discuss the lack of oxygen and concerns that doctors and nurses are overwhelmed and exhausted. On Saturday, Indian officials announced that the first batch of Russian vaccine, Sputnik V, had arrived, fueling India’s declining vaccination campaign.

Critics have blown up Mr. Modi’s handling of the crisis. His government ignored warnings from scientists and its own Covid-19 task force did not meet for months. To signal that India is open to business, Mr Modi himself declared an early victory over Covid at the end of January, while a mere infection pause emerged.

Much of India dropped its guard. Coupled with the emergence of more dangerous variants and the sluggish vaccination campaign, this is likely to have fueled the staggering number of infections, the worst numbers the world has ever seen.

The elections in West Bengal took place gradually, beginning at the end of March and ending last week. Many reviewers said it should have been canceled, or at least rallies should have been stopped.

But that didn’t happen. Mr. Modi’s party went on the attack, telling Hindu voters that if they did not vote for Mr. Modi’s party, their deepest religious beliefs could be at risk.

Ms. Banerjee, 66, who has run the state for a decade, dismissed this as nonsense. It has long been popular with Muslims and other minorities and also appealed directly to Hindus. She painted the BJP as an outsider to their state, intent on causing trouble.

Mr. Modi traveled to West Bengal about a dozen times to attend rallies (often without a mask, with many people in the crowd). His face was so ubiquitous that people joked that he appeared to be running for prime minister, the top state executive in India’s decentralized system.

Ms. Banerjee’s campaign slogan was simple and nativist: “Bengal chooses its own daughter.”

Despite this likely loss, Mr. Modi’s party is by far the dominant political outfit in India, and there is no other political figure that comes close to his popularity.

Given the tough battle for West Bengal, some analysts saw Sunday’s results as a blow to him. Ms. Banerjee and other regional figures – notably MK Stalin in Tamil Nadu and Pinarayi Vijayan in Kerala – gained strength.

“This government is now fighting a public backlash against the mistreatment of the Covid pandemic,” said Arati Jerath, a noted political commentator. “I think it is bad news for Modi that three powerful regional chiefs emerge from these elections.”

Categories
World News

How Parler deplatforming exhibits energy of Amazon, cloud suppliers

Andy Jassy, ​​CEO of Amazon Web Services.

CNBC

Launching Amazon Web Services is rare, but it has enormous consequences.

It came this week when Amazon dropped Parler, a social network that caught on with conservatives after Twitter banned President Donald Trump and included content that encouraged violence. Parler filed a lawsuit against Amazon in federal district court to prevent Amazon from suspending Parler’s account, and Amazon pushed back, asking the court to deny Parler’s motion.

The incident shows a kind of power that Amazon wields almost uniquely because so many companies rely on it to provide computers and data storage. According to estimates by technology research firm Gartner, Amazon controlled 45% of cloud infrastructure in 2019, more than any other company. The app survived without being listed in the Apple and Google app stores. However, by sending from the Amazon cloud, Parler is not represented on the Internet for days.

Parler’s engineering team had developed software that relied on computer resources from Amazon Web Services, and the company had spoken to Amazon about introducing a proprietary AWS database and artificial intelligence services, the company said in a court case on Wednesday With.

It would take some time to figure out how to perform similar functions on Parler’s own servers or a cloud other than AWS. And in the case of Parler, time is of the essence as the service gained attention and new users after the Trump ban on Twitter.

Parler’s engineers could learn to use other computing infrastructures, or the company could hire developers who already have this knowledge. However, since no cloud provider is as popular as Amazon, Oracle’s clouds, for example, are not as easy to find as those who know how to build on AWS.

The warnings were there

The speed with which Amazon acted shouldn’t come as a shock. Companies have been posting details of their dealings with Amazon for years warning of such sudden crashes.

In 2010, DNA sequencing company Complete Genomics said that “if Amazon Web Services disrupted the services we rely on to deliver ready-made genomic data to our customers, our customers would not receive their data on time.”

Gaming company Zynga warned its AWS foundation could quickly disappear when it filed for prospectus for its IPO in 2011. At the time, AWS was hosting half of the traffic for Zynga’s games like FarmVille and Words with Friends.

“AWS may terminate the agreement without giving reasons with 180 days ‘notice in writing and terminate the agreement with 30 days’ notice in writing for good cause, including all material failures or violations of the agreement by us that we do not within the 30th – Time of day, “said Zynga.

AWS may even immediately terminate or suspend its agreement with a customer in certain circumstances, as was the case with Wikileaks in 2010, indicating violations of the AWS Terms of Service.

Parler began using AWS in 2018, long after the Wikileaks incident and the first company disclosures about the possibility of cloud disruptions.

When AWS announced to Parler that it was planning to block Parler’s AWS account, Parler repeatedly violated the rules, including by not owning or controlling the rights to its content.

Over the course of several weeks, AWS Parler drew attention to cases of user content that led to violence, Amazon said in a lawsuit. Additional content emerged after protesters stormed the Washington Capitol on January 6, disrupting Congress’ confirmation of the electoral college’s results in the 2020 presidential election. AWS said that Parler had not done enough to quickly remove this type of information from its social network.

Parler could have protected himself better. Large AWS customers can sign up for broader agreements that give more customers time to comply when they break the rules.

Gartner analyst Lydia Leong explained this difference in a blog post: “Thirty days is a common time frame specified as a curing period in contracts (and the curing period in the AWS Standard Corporate Agreement), but it is click-through agreements from cloud providers (e.g., because the AWS customer agreement) does not typically have a curing period, action can be taken immediately at the provider’s discretion, “she wrote.

Other cloud providers have their own set of conditions that their customers must follow. AWS now has millions of customers and holds more of the cloud infrastructure market than any other provider. As a result, if they don’t behave according to Amazon’s standards, many companies could be exposed to the type of treatment Parler has received, rare as it is.

Parler recognized the drawbacks of being committed to a cloud provider, but ultimately the flexibility offered by the clouds was too attractive to ignore. “Personally, I’m very much against the cloud and anti-centralization, even though AWS has its place for high-frequency traffic,” wrote Alexander Blair, Parler’s chief technology officer, in a post about the service.

Parler and Amazon did not immediately respond to requests for comment.

CLOCK: Apple pulls Parler out of the App Store while cracking down on violent posts