Navy Awards AWS $724M Software License Contract
Here’s what Amazon Web Services will be providing the U.S. Navy over the next five years via a massive enterprise software license contract.
The U.S. Navy has awarded Amazon Web Services a massive $724 million enterprise software license contract to leverage AWS’ cloud platform, services and cloud certifications.
The five-year enterprise software license (ESL) will provide the U.S. Department of Defense access to “AWS’ commercial cloud environment, AWS professional services, and AWS training and certification courses,” according to a release by the Department of Defense.
The ESL includes work to be performed from December 2022 through December 2028.
The Navy issued the single award to Seattle-based AWS on a firm-fixed-price of exactly $723,878,930.
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AWS Part Of $9 Billion Pentagon JWCC Contact
The Navy software license win comes just weeks after the Pentagon awarded cloud computing contracts totaling $9 billion to AWS and its competitors.
AWS, Google, Oracle and Microsoft each received hybrid contracts for the Department of Defense Joint Warfighting Cloud Capability (JWCC) project.
The $9 billion JWCC contracts will provide the Department of Defense with “enterprise-wide globally available cloud services across all security domains and classification levels, from the strategic level to the tactical edge,” said the Department of Defense.
“The Joint Warfighting Cloud Capability will allow mission owners to acquire authorized commercial cloud offerings directly from the Cloud Service Providers contract awardees,” the Department of Defense also said.
AWS will perform its work in Seattle while Microsoft, Oracle and Google will perform their work in Reston, Va.
The vendors are expected to finish their work by June 8, 2028.
The JWCC project is the multi-cloud successor of the Joint Enterprise Defense Infrastructure (JEDI) project, which was bogged down in politics and legal woes.
AWS Hits $80 Billion Run Rate
The cloud market-share leader’s annual run rate is now exceeding $80 billion.
In the first quarter of 2022, AWS cloud sales increased 37 percent year over year to $18.4 billion. The second quarter saw AWS revenue jump 33 percent year over year to over $19.7 billion.
For AWS’ third quarter, cloud sales climbed 27 percent year over year to $20.5 billion.
AWS is currently the dominant worldwide market-share cloud services leader, owning 34 percent share of the global market, according to data from Synergy Research Group. Microsoft ranks No. 2 at 21 percent share, followed by Google at 11 percent share.