Feeds

IBM gives up fight to build CIA's $600m secret cloud, hands deal to Amazon

Withdraws injunctive action and scuttles back into shadow

Top three mobile application threats

IBM has stumbled away from its legal tussle with Amazon over a strategically important contract to build a $600m cloud system for the CIA.

Today Big Blue withdrew its formal protest against the spooks' decision to use the online bazaar's technology, effectively ceding the massive contract to Jeff Bezos & Co. It also marks a shift in the balance of power among federal IT contractors.

For years IBM and a coterie of other huge companies – Oracle, HP, Dell, SAP, SAS, Verizon, and so on – have taken the largest share of public cash for government computer projects.

But all things come to an end, and the CIA's decision to plump for Amazon's private cloud over IBM's earlier this year signaled a changing of the guard. It also blew away some of the clouds of fear, uncertainty and doubt that incumbent suppliers had spread about upstarts.

IBM protested the CIA decision, and Amazon unleashed its own lawyers to fight back. A federal judge struck down IBM's objection earlier this month, and now IBM has withdrawn its final complaint, effectively bowing out of the race.

Calls to Big Blue went unanswered at the time of writing, though the tech titan did tell gov trade mag FCW "in light of the government's recent submissions emphasizing its need to move forward on the contract, IBM has withdrawn its motion." Amazon had no comment when The Reg contacted it.

Now that Bezos & Co can build a $600m private cloud for the CIA, perhaps they will consider doing a private cloud for the general hoi polloi as well – watch out, Eucalyptus, your partner might just be gearing up to trample you. ®

High performance access to file storage

More from The Register

next story
This time it's 'Personal': new Office 365 sub covers just two devices
Redmond also brings Office into Google's back yard
Kingston DataTraveler MicroDuo: Turn your phone into a 72GB beast
USB-usiness in the front, micro-USB party in the back
Dropbox defends fantastically badly timed Condoleezza Rice appointment
'Nothing is going to change with Dr. Rice's appointment,' file sharer promises
Inside the Hekaton: SQL Server 2014's database engine deconstructed
Nadella's database sqares the circle of cheap memory vs speed
BOFH: Oh DO tell us what you think. *CLICK*
$%%&amp Oh dear, we've been cut *CLICK* Well hello *CLICK* You're breaking up...
Just what could be inside Dropbox's new 'Home For Life'?
Biz apps, messaging, photos, email, more storage – sorry, did you think there would be cake?
AMD's 'Seattle' 64-bit ARM server chips now sampling, set to launch in late 2014
But they won't appear in SeaMicro Fabric Compute Systems anytime soon
Amazon reveals its Google-killing 'R3' server instances
A mega-memory instance that never forgets
prev story

Whitepapers

Top three mobile application threats
Learn about three of the top mobile application security threats facing businesses today and recommendations on how to mitigate the risk.
Combat fraud and increase customer satisfaction
Based on their experience using HP ArcSight Enterprise Security Manager for IT security operations, Finansbank moved to HP ArcSight ESM for fraud management.
The benefits of software based PBX
Why you should break free from your proprietary PBX and how to leverage your existing server hardware.
Five 3D headsets to be won!
We were so impressed by the Durovis Dive headset we’ve asked the company to give some away to Reg readers.
SANS - Survey on application security programs
In this whitepaper learn about the state of application security programs and practices of 488 surveyed respondents, and discover how mature and effective these programs are.