Amazon and Microsoft just scored a huge $100 million cloud deal that can't be making IBM too happy

Jeff Bezos Michael Seto/Business Insider

Amazon and Microsoft are quickly becoming the king and queen of cloud computing.

Here's another case in point: the two of them just won a huge contract with the FAA, led by IT consultant CSC. This contract will consolidate the FCC's data centers, moving data to both Amazon's cloud Amazon Web Services (AWS) and Microsoft's cloud, Azure.

CSC says the contract is worth $108 million out of the gate, and because its a long-term contract, could be worth as much as $1 billion over the next 10 years.

The FAA isn't getting rid of its data centers altogether to run on AWS and Azure (although that is increasingly becoming a thing that huge companies like Netflix and Yahama of America are doing - both of whom are using AWS).

The FAA is just trying to shrink its data centers and use the two clouds as much as it can - a type of cloud computing known as "hybrid" computing. A lot of big organizations are moving towards hybrid computing these days, rather than ditching their own data centers altogether.

The most interesting thing about this announcement: IBM was left out in the cold.

IBM and the FAA have a long and storied relationship, stretching back for decades. That's not to say that the FAA is dropping its relationship with IBM completely. But it's interesting that of the two clouds FAA chose for this huge consolidation project, IBM didn't make the cut.

IBM is battling big time for its share of the huge-and-growing cloud computing market and is currently placed third, according to Synergy Research.

But Amazon is killing it when it comes to winning business from government agencies with extreme security needs. A couple of years ago, it famously won a contract to build a new cloud for the CIA out from IBM.

That cloud has become a big winner, not just for Amazon and the CIA, but all the intelligence agencies are reportedly loving this new cloud, Fortune's Barb Darrow reported.

And, as we predicted back in 2013, that win meant that Amazon would be in good standing with other government agencies, not to IBM's benefit.

We reached out to IBM for comment and will update when we hear back.

Disclosure: Jeff Bezos is an investor in Business Insider through hispersonal investment company Bezos Expeditions.

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