Defense Contractors Jockey for Pentagon Post-JEDI Cloud Profits

Bloomberg Government

July 12, 2021

As some cloud contractors look to lock in new customers, others—like Wang, from Peraton Corp.—see the Pentagon’s new enterprise cloud contract as an opportunity.

Peraton became a major market player virtually overnight through a merger with Perspecta Inc., one of the top cloud services brokers to the Defense Information Systems Agency as well as the Department of Health and Human Services.

By shifting to a multicloud strategy centered on Amazon and Microsoft, Pentagon leaders are offering their users greater flexibility to choose the right environment that fits their unique needs, said Wang. But doing so also introduces greater complexity. Customers will need to ensure that data and software developed in one cloud environment is compatible with the other. For that reason, the DOD may end up relying on systems integrators more so than it might have under JEDI.

“Integration solutions will be critical,” said Wang.

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