If Amazon Beats IBM For CIA Cloud Deal, It Could Shake Up A Whole New Market
Amazon
On Tuesday, a top exec for Amazon's cloud business, known as
"The federal government opportunity is enormous," Adam Selipsky, an AWS VP, told The Wall Street Journal's Spencer Ante. "We believe that will be a very significant business for Amazon Web Services going forward."
Amazon and the CIA inked the cloud contract in March, as first reported by Frank Konkel at Federal Computer Week. IBM, which also bid on the contract, is trying to convince the government to block the deal.
Amazon doesn't talk much about its cloud business, so the timing of Selipsky's comments could be taken as a warning shot to IBM and other
If Amazon prevails over IBM, it could gain access to a new market where it hasn't played before.
AWS is the leader in "public cloud" services, where customers rent access to servers and
But the CIA is said to want a "private cloud"—which usually means hardware and software that runs in an company's own data center. Enterprises prefer this because they're afraid of putting their data in someone else's data center.
The thing is, Amazon doesn't sell private clouds. Companies that want private clouds that work with AWS can get them from Eucalyptus Systems, its business partner.
So if the CIA picks Amazon to build its private cloud, that would give IBM and other private cloud vendors like Microsoft, HP, VMware and Citrix, a formidable new competitor that is already wreaking havoc on their businesses.
Disclosure: Jeff Bezos is an investor in Business Insider through his personal investment company Bezos Expeditions.
- A centenarian who starts her day with gentle exercise and loves walks shares 5 longevity tips, including staying single
- A couple accidentally shipped their cat in an Amazon return package. It arrived safely 6 days later, hundreds of miles away.
- FSSAI in process of collecting pan-India samples of Nestle's Cerelac baby cereals: CEO
- 7 Nutritious and flavourful tiffin ideas to pack for school
- India's e-commerce market set to skyrocket as the country's digital economy surges to USD 1 Trillion by 2030
- Top 5 places to visit near Rishikesh
- Indian economy remains in bright spot: Ministry of Finance
- A surprise visit: Tesla CEO Elon Musk heads to China after deferring India visit
- JNK India IPO allotment date
- JioCinema New Plans
- Realme Narzo 70 Launched
- Apple Let Loose event
- Elon Musk Apology
- RIL cash flows
- Charlie Munger
- Feedbank IPO allotment
- Tata IPO allotment
- Most generous retirement plans
- Broadcom lays off
- Cibil Score vs Cibil Report
- Birla and Bajaj in top Richest
- Nestle Sept 2023 report
- India Equity Market