IBM Loses Fight With Amazon Over CIA Cloud Contract and 2 Other Dow Movers to Watch
International Business Machines Corp. (NYSE:IBM): Current price $185.80
A judge for the U.S. Court of Federal Claims has given Amazon (NASDAQ:AMZN) clearance to immediately resume work on a project to build a private cloud for the Central Intelligence Agency, worth as much as $600 million over 10 years, according to Frank Konkel at Federal Computer Week. This venture marks Amazon’s first “private” cloud and could be a game changer in a fledgling market that’s already generating some $131 billion in 2013, market research firm Gartner says. IBM had put in a competitive offer and subsequently protested the CIA contract. However, court documents indicate that Amazon’s bid was $54 million more than IBM’s, but the latter was selected by the CIA because the agency considered the tech superior.