It is 'not in the identical class' as Microsoft and Amazon (ORCL, MSFT, AMZN, GOOG, IBM)

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Larry Ellison

  • The Pentagon mentioned Oracle is “not in the identical class” as rivals Microsoft and Amazon, the finalists within the contract bid course of for the $10 billion JEDI cloud challenge.
  • Oracle had filed a lawsuit difficult the Protection Division’s resolution. It accused Amazon of utilizing job affords and bonuses to achieve an edge within the bidding course of.
  • The Pentagon has rejected the claims, and claimed Oracle misstated an trade report which downplayed the corporate’s place within the cloud.
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The Pentagon threw some critical shade at Oracle, say that it had rejected its aggressive bid for a $10 billion cloud contract as a result of the tech behemoth is “not in the identical class” as rivals Microsoft and Amazon.

The Protection Division had named Microsoft and Amazon as the ultimate contenders for the Joint Enterprise Protection Infrastructure (JEDI) challenge, a platform that may retailer and handle delicate navy and protection information. In naming these two finalists, the Pentagon rejected the bids of Oracle and IBM. Google dropped out of the operating in October, earlier than the bidding course of closed. 

However Oracle filed a lawsuit difficult the Pentagon’s resolution, and the bidding course of. In a authorized grievance first reported in Might, Oracle argued that “JEDI is riddled with improprieties,” claiming that “[Amazon Web Services] made undisclosed employment and bonus affords to at the least two DoD (Dept. of Protection) JEDI officers.”

The Pentagon has denied the allegations. In new authorized filings made public final week, the Protection Division additionally defended its number of Microsoft and Amazon, arguing that Oracle doesn’t have the and capabilities of the 2 finalists.

“Oracle will not be in the identical class as Microsoft and AWS relating to offering business IaaS and PaaS cloud companies on a broad scale,” the fling mentioned, referring to 2 key cloud know-how choices — particularly, “infrastructure as a service” and “platform as a service.”

The Pentagon additionally accused Oracle of constructing faulty claims about its standing in cloud computing.

“Oracle misleadingly asserts current Gartner report has recognized Oracle as one in all ‘six main IaaS suppliers,'” the submitting mentioned. The report, it added, “recognized solely AWS, Microsoft, and Google as ‘Leaders,’ whereas figuring out Oracle as a ‘Area of interest Participant.'”

It isn’t clear which report from analyst agency Gartner that the submitting refers to, precisely. Nonetheless, Gartner analysis from 2018 seen by Enterprise Insider reveals that that agency charges Oracle under Microsoft, Amazon, and Google on metrics together with “completeness of imaginative and prescient” and “capability to execute.” 

Oracle declined to remark.

Table of Contents

An necessary participant

Amazon dominated the $25 billion public cloud market with 46% market share, in response to analyst agency IDC’s 2017 information. Microsoft was second with 11%, adopted by IBM with 5.6%, Alibaba Group with four.5% and Google with three.three%

Oracle has been a dominant participant in enterprise software program, however the Redwood Metropolis, California firm is extensively thought of to have been late in increasing to the cloud. 

Nonetheless, IDC President Crawford Del Prete considers Oracle an necessary participant within the cloud market.

“Oracle is a IaaS and PaaS vendor in a market the place it isn’t the share chief,” he informed Enterprise Insider. “Nonetheless, there are Oracle prospects that depend on the Oracle Cloud to run their enterprise daily. That is for certain.”

Analyst Ray Wang of Constellation Analysis additionally questioned the Pentagon’s resolution to restrict such an enormous cloud product to only one vendor — echoing issues with the method raised beforehand by each Oracle and Google. 

“The Pentagon’s want for a one-stop store in cloud with a winner takes all mannequin will not be good for competitors and can enable the winner to achieve a major market benefit over the losers,” Wang informed Enterprise Insider.

The Pentagon JEDI challenge is predicted to be one of many largest public cloud initiatives in historical past. That explains the extraordinary curiosity from main tech giants, highlighted by Oracle’s marketing campaign even after its bid was rejected by the Protection Division.

“That is an important cloud deal ever,” Wedbush analyst Daniel Ives informed Enterprise Insider, who has speculated that Oracle’s authorized motion has boosted Microsoft’s possibilities towards Amazon. “There’s quite a bit driving on it.”

A Protection Division spokesperson informed Enterprise Insider that the JEDI contract shall be awarded as early as August 23. The Pentagon additionally careworn the significance of shifting ahead with the challenge. In its submitting, Lieutenant Normal Bradford Shwedo, chief info officer of the Pentagon Joint Workers, mentioned, “Any delays within the adoption of JEDI Cloud delays our warfighters from receiving info that would make the distinction in efficiently finishing missions and getting residence to their households.”

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Learn the Division of Protection response to Oracle’s grievance. 

Acquired a tip about Oracle, Amazon or one other tech firm? Contact this reporter through electronic mail at bpimentel@businessinsider.com, message him on Twitter @benpimentel. You can too contact Enterprise Insider securely through SecureDrop.

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