IBM and Amazon have been engaged in a heated legal dispute regarding a $600 million cloud computing contract offered by the CIA. The contract was initially awarded to Amazon Web Services earlier this year. IBM disputed the award causing the Government Office of Accountability to step in and examine the claims. The GAO acknowledged that Amazon’s services represented the best available at the time both in terms of cost and technical capacity. They also, however, validated IBM’s claims and urged that contract bids be re-opened. Amazon responded by filing suit against the government.
Amazon used the court proceedings as an opportunity to verbally bash IBM’s capabilities in the industry. Amazon also targeted the metrics employed by the GAO to evaluate both companiesai??i?? abilities to deliver technological solutions. The bottom line is that Amazon believes the court should recognize the validity of the original offer and force the CIA to proceed using Amazon Web Services.
IBM’s contention for the project may have been strengthened by the acquisition of SoftLayer. It is alleged that IBM may make a follow up bid using the SoftLayer abilities. IBM expressed confidence that the courts would find no fault with the government’s decision to begin the bid process anew. IBM further asserted that their corporation has more experience in delivering technological services to government agencies.
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