There’s a new snag for Amazon in the winner-take-all $10 billion Pentagon cloud contract, and it could be good news for Microsoft (AMZN, MSFT)

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  • The Department of Defense has agreed to investigate some of the central complaints Oracle raised in a lawsuit.
  • Oracle is suing to keep the Pentagon from granting the $10 billion JEDI cloud computing contract to Amazon, which is far and away the favorite to win the bid. 
  • This is a half-step win for Oracle that may simply delay the inevitable.
  • On the other hand, some in the industry are predicting that Amazon’s struggles could be a windfall for another of Oracle’s competitors: Microsoft.

The Department of Defense has agreed to investigate some of the central complaints raised by Oracle in a lawsuit. The suit has been Oracle’s method to wrestle a $10 billion cloud computing contract out of the waiting hands of Amazon, who has long been considered the front-runner for the winner-take-all deal. 

On Tuesday, the Pentagon’s lawyers asked for a stay — meaning a postponement — in Oracle’s lawsuit, which no one, not even Oracle, opposed. The motion asking for the stay was sealed, the Wall Street Journal reported.

See the rest of the story at Business Insider

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