Feeds

Judge smites IBM's anti-Amazon cloud campaign

Big Blue's bid to freeze Bezos & Co out of contract struck down in court

Internet Security Threat Report 2014

Updated Amazon's attempt to muscle in on IBM's territory and grab a slice of oh-so-lucrative government cloud workloads took a step forward on Monday after a Federal Judge ruled in favor of Bezos & Co.

The ruling by Judge Thomas Wheeler was published on Pacer on Monday, and could torpedo IBM's attempt to knock the Amazon Web Services technology out of consideration for a $600m contract to build a spy cloud for the CIA.

Wheeler's ruling is the culmination of a dispute that has been going on since February, this year, and has big implications for Amazon, and poses a major cause for concern to the folks that run IBM's cloud business.

Amazon was awarded the strategically important contract to build a private cloud for the CIA in February, but IBM disputed the win, claiming the evaluation hadn't been fully above board.

A federal procurement body, the Government Accountability Office (GAO), upheld two of IBM's points, spurring a re-evaluation. In response, Amazon lodged a complaint which argued that a re-evaluation was unnecessary, and slung mud at IBM's – in Amazon's words – "materially deficient proposal". Wheeler's ruling on Monday sided with AWS.

Though Amazon's original bid came in over 50 per cent higher in price that IBM's original bid ($148m a year, versus IBM's $94m), Federal evaluators thought Bezos & Co's cloud was far superior to the IBM offering, classing it as a "superior technical solution".

"We are disappointed with the ruling from the U.S. Court of Federal Claims, reversing the GAO's recommendation to reopen the competition and correct flaws in the bidding process," IBM said in a statement given to gov IT mag FCW. "IBM plans to appeal this decision. This court decision seems especially inappropriate in light of the current times, since IBM's bid was superior in many ways, including being substantially more cost-effective. In addition, IBM has for decades supplied the government with proven mission-critical operations. The company remains committed to provide secure, reliable and robust cloud solutions to federal agencies."

IBM had not responded to requests for further information at the time of writing. Amazon declined to comment. ®

Update:

"We are pleased with the Court's decision and look forward to resuming our work on this important contract with our customer," an Amazon spokesperson said in a statement given to The Register on Tuesday.

Internet Security Threat Report 2014

More from The Register

next story
Docker's app containers are coming to Windows Server, says Microsoft
MS chases app deployment speeds already enjoyed by Linux devs
IBM storage revenues sink: 'We are disappointed,' says CEO
Time to put the storage biz up for sale?
'Hmm, why CAN'T I run a water pipe through that rack of media servers?'
Leaving Las Vegas for Armenia kludging and Dubai dune bashing
Facebook slurps 'paste sites' for STOLEN passwords, sprinkles on hash and salt
Zuck's ad empire DOESN'T see details in plain text. Phew!
SDI wars: WTF is software defined infrastructure?
This time we play for ALL the marbles
Windows 10: Forget Cloudobile, put Security and Privacy First
But - dammit - It would be insane to say 'don't collect, because NSA'
Oracle hires former SAP exec for cloudy push
'We know Larry said cloud was gibberish, and insane, and idiotic, but...'
prev story

Whitepapers

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.
Cloud and hybrid-cloud data protection for VMware
Learn how quick and easy it is to configure backups and perform restores for VMware environments.
Three 1TB solid state scorchers up for grabs
Big SSDs can be expensive but think big and think free because you could be the lucky winner of one of three 1TB Samsung SSD 840 EVO drives that we’re giving away worth over £300 apiece.
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.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.