Feeds

Report: IBM protests Amazon $600m CIA cloud contract

Amazon: 'We're changing IT!' Big Blue: 'Release the lawyers!'

Internet Security Threat Report 2014

IBM has lawyered-up to protest the CIA's alleged plan to spend $600 million with Amazon Web Services over the next decade.

Big Blue has filed a bid of protest with the government to try and get the CIA to reconsider its decision to spend money on Bezos & Co.'s cloud, according to some diligent muckraking by government IT mag FCW.

The $600m contract was first reported by FCW in March, and should see AWS help the CIA build its own spooky private cloud – that is, a giant pool of infrastructure with a software layer on top that lets the CIA devote all its resources to a single task, or as many tasks as there are CPUs, with a flexible data storage and networking underlay as well.

IBM, being none too happy about this, filed a protest on the contract in Feb 26th, and supplemented the protest with further information three times, with the last protest filed April 11th, according to FCW.

Traditionally, IBM has been the go-to organization for governments with major logistical and IT projects, whether that be building the gear for major US and German censuses, designing some of NASA's compute infrastructure, or creating massive travel-reservation systems.

For a company like Amazon to get this type of contract flies in the face of IBM's corporate strategy, and we reckon could elicit befuddled responses akin to VMware's labelling of Amazon as little more than "a company that sells books".

But the pesky invisible hand of Adam Smith is on Amazon's side, as the cost benefits gained from increasing capacity utilization and having a more uniform non-specialist base of capital components seem to favor AWS-style solutions over those of the build-to-fit IBM specialty.

For this reason, a team of some 25 Morgan Stanley bean counters recently proclaimed that the rise of the AWS cloud represents a severe threat to much of the existing IT industry. This CIA deal is another illustration of how AWS's cloud has upended the traditional IT world.

At the time of writing, neither Amazon or IBM had responded to a request by The Register for information. ®

Internet Security Threat Report 2014

More from The Register

next story
Cray-cray Met Office spaffs £97m on VERY AVERAGE HPC box
Only 250th most powerful in the world? Bring back Michael Fish
UK.gov pushes for SWIFT ACTION against nuisance calls, threatens £500k fines
DCMS seeks lowering of legal threshold to fight rogue firms
Just don't blame Bono! Apple iTunes music sales PLUMMET
Cupertino revenue hit by cheapo downloads, says report
The DRUGSTORES DON'T WORK, CVS makes IT WORSE ... for Apple Pay
Goog Wallet apparently also spurned in NFC lockdown
Microsoft brings the CLOUD that GOES ON FOREVER
Sky's the limit with unrestricted space in the cloud
'ANYTHING BUT STABLE' Netflix suffers BIG Europe-wide outage
Friday night LIVE? Nope. The only thing streaming are tears down my face
Google roolz! Nest buys Revolv, KILLS new sales of home hub
Take my temperature, I'm feeling a little bit dizzy
prev story

Whitepapers

Cloud and hybrid-cloud data protection for VMware
Learn how quick and easy it is to configure backups and perform restores for VMware environments.
Forging a new future with identity relationship management
Learn about ForgeRock's next generation IRM platform and how it is designed to empower CEOS's and enterprises to engage with consumers.
Reg Reader Research: SaaS based Email and Office Productivity Tools
Read this Reg reader report which provides advice and guidance for SMBs towards the use of SaaS based email and Office productivity tools.
Saudi Petroleum chooses Tegile storage solution
A storage solution that addresses company growth and performance for business-critical applications of caseware archive and search along with other key operational systems.
How to simplify SSL certificate management
Simple steps to take control of SSL certificates across the enterprise, and recommendations centralizing certificate management throughout their lifecycle.