Cloud Contracts of Microsoft

Microsoft has a cloud contract of worth 10 billion dollars with the US Military. It’s about building a Joint Enterprise Defense Infrastructure. The contract was worth 10 billion dollars over a period of 10 years. During this time, the ministry is replacing outdated systems with PaaS and IaaS solutions from Microsoft.

Microsoft prevailed against Amazon in the competition for a major cloud contract from the US Department of Defense. The software company received the approval to set up the Joint Enterprise Defense Infrastructure (JEDI). The Department of Defense is spending $ 10 billion to implement its new cloud strategy.

In the course of the tendering process, many observers saw Amazon as the favorite. After Google withdrew last year and Oracle and IBM later this year, the decision should be made between Amazon and Microsoft. In August, the Pentagon temporarily suspended the tender after US President Trump complained about possible conflicts of interest. The concerns were directed against Amazon CEO Jeff Bezos, owner of the Trump-critical daily Washington Post.

The aim of JEDI is to replace outdated systems with new cloud services. According to the US government, JEDI equips the ministry and all mission partners for all tasks and missions of the ministry with enterprise level IaaS (Infrastructure as a Service) and PaaS (Platform as a Service)”.

“Today the Department of Defense has taken another step in the implementation of its cloud strategy by awarding an Enterprise General Purpose Cloud contract to Microsoft. This continues our strategy of a multi-vendor and multi-cloud environment, as the requirements of the ministry are diverse and cannot be met by a single provider,” said the Department of Defense. The treaty meets the requirements of warfare for a modern infrastructure for all three branches of arms.

The processing of the order and thus also the order volume depends on the success. The total term over which the total volume of 10 billion dollars is to be fulfilled is ten years. The ministry expects spending over the base two-year period to total $ 210 million. “The ministry will rigorously review the performance of the contract before exercising options,” the press release said.

Microsoft has revised the cloud contracts with corporate customers called Online Services Terms. They now contain new data protection provisions. The software company is responding to investigations by the EU into possible violations of the General Data Protection Regulation.

Microsoft changes cloud contracts

The trigger is criticism by the Dutch judiciary of the collection of telemetry data. Microsoft also addresses the concerns of the European Data Protection Supervisor. Among other things, Microsoft is now making it clear that it will take on the role of data controller.

The top data protection officer of the EU also assessed the agreement that Microsoft reached with the Dutch judiciary regarding contractual and technical changes in order to minimize risks for individuals. It is a step in the right direction.

The new Online Service Terms now contain the contractual changes that were worked out with the Dutch judiciary. According to Julie Brill , chief privacy officer and corporate vice president for global data protection, the new regulations are intended to provide more transparency about the processing of data in the Microsoft cloud. Above all, they should describe in more detail how Microsoft uses certain collected data.

However, the new rule does not only apply to EU institutions, but to all public institutions and business customers worldwide – regardless of the size of the organization. According to Brill, Microsoft will offer the new contracts to all customers from early 2020.

The investigation was triggered by an assessment by the Dutch Ministry of Justice that the collection of telemetry data from users of Office 365 ProPlus and Office 365 violated the General Data Protection Regulation. The European Data Protection Supervisor then investigated the Redmond company. He then expressed “serious concerns” about a month ago about the contracts that Microsoft has concluded with European institutions.


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