Here’s how the government shutdown could affect the race between Amazon and Microsoft for a $10 billion Pentagon cloud contract (AMZN, MSFT, ORCL, IBM)

WASHINGTON, DC - JANUARY 02: U.S. President Donald Trump (L) talks to journalists during a meeting with members of his Cabinet, including acting Defense Secretary Patrick Shanahan, in the Cabinet Room at the White House January 02, 2019 in Washington, DC. A partial federal government shutdown entered its 12th day as Trump and House Democrats are at an impasse over funding for border security, including the president’s demand for $5 billion for a wall along the U.S.-Mexico border. (Photo by Chip Somodevilla/Getty Images)

  • The bid for the Joint Enterprise Defense Infrastructure (JEDI) contract, a $10 billion cloud contract with the Pentagon that cloud giants are competing for, might potentially be delayed because of the government shutdown, some analysts say.
  • Since the Department of Defense wasn’t closed from the shutdown, there won’t be a direct impact on the JEDI race.
  • However, the shutdown could affect government cybersecurity, the ability of companies to obtain government security certifications, and the timing of the winner’s announcement.

Three weeks have already passed since the government shutdown began, tying it for the longest shutdown in history. While Congress tries to settle the standoff, there’s one thing that cloud giants may have to worry about.

There’s a race for a $10 billion cloud contract with the Pentagon called the Joint Enterprise Defense Infrastructure (JEDI) contract, and it’s a winner-take-all competition between Amazon, Microsoft, IBM and Oracle. An award is expected in April, and the shutdown could potentially affect this match some analysts say.

The good news is, the government shutdown has no direct impact on the race.

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