Hunter Muller, President and CEO, HMG Strategy

WESTPORT, Conn.—Oct. 28, 2018—Top investors thought Amazon would win the Pentagon’s Joint Enterprise Defense Infrastructure (JEDI) deal. When the contract went to Microsoft late last week, it came as a shock, according to Hunter Muller, President and CEO of HMG Strategy. However, he said the decision would revitalize and reenergize competition in the cloud services market.

“Clearly, this is a watershed moment for Microsoft,” Muller said. “It’s also a defining moment for the Pentagon, which has struggled to keep pace with the rapid evolution of information technology.”

In a new article on the HMG Strategy Digital Resource Center, Muller wrote about the effect this deal will have on the cloud services market, and the technology industry as a whole.

According to a statement on the U.S. Department of Defense website, the 10-year pact is firm-fixed-price, indefinite-delivery, indefinite-quantity contract which has a ceiling value of $10 billion.

CNBC technology writer Jordan Novet reported that Amazon appeared to have an early lead for the bid, because of its 2013 contract with the CIA, and its high-level security clearance certification. Nevertheless, Microsoft caught up — Muller said this represents the “exemplary leadership” demonstrated by CEO Satya Nadella.

“Microsoft’s victory signals a new chapter in the larger landscape of cloud services,” said Muller. “This is more than just a big win — it’s a game changer.”

Wholesome competition is generally conducive to innovation and economical market pricing. Consequently, the friendly bout between Microsoft and Amazon for this contract is likely to contribute significantly to the long-term health of the technology industry, according to Muller.

To read other industry and market predictions by Hunter Muller, visit the HMG Strategy Resource Center, where forward-looking research articles are published alongside videos, white papers, case studies and other multimedia materials.

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