Amazon Web Services (AWS) and Microsoft are heading into 2023 with some more good news from the government. The U.S. Navy awarded AWS a five-year, $724 million enterprise software license agreement and Microsoft joined more than 90 other companies to be part of a $900 million contract from the Air Force for the development of multi-domain systems capabilities.
The AWS contract will provide the Navy with access to AWS’ cloud environment and also includes professional services, and AWS’ training and certification courses. The contract with the U.S. Navy will end in December 2028.
In Microsoft’s case, the company is being added to a multiple award contract that the Air Force announced December 9. Microsoft joins nearly eight dozen other companies. The contract has a $900 million ceiling and lasts an indefinite period of time.
The contract covers a broad scope of technology and the companies involved will need to compete for work as well as study new technologies and systems. They also will have to schedule and conduct technology demonstrations and develop prototypes.
The news of these contracts comes just two weeks after the government announced that both AWS and Microsoft Azure were part of the $9 billion contract for the Joint Warfare Cloud Capability (JWCC) project.
The JWCC contract is unique because it gives AWS, Microsoft Azure as well as Google Cloud Platform and Oracle Cloud a chance to bid on other projects within the Department of Defense, which includes the Navy. However, it’s not clear if either of these latest awards are related to the JWCC project.