Microsoft Approached Google, Oracle, Other Cloud Providers To Pitch Multi-Cloud Service Providing To US: WSJ

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  • Microsoft Corp MSFT rallied other big-name cloud-computing providers to urge the U.S. to spread its spending on such services more widely, the Wall Street Journal reports.
  • Microsoft targeted Amazon.com Inc's AMZN dominance in such contracts by the move.
  • The cloud-computing providers approached included Alphabet Inc's GOOG GOOGL Google, Oracle Corp ORCLVmware, Inc VMWDell Technologies Inc DELLInternational Business Machines Corp IBMHewlett Packard Enterprise Co HPE.
  • Also Read: Department Of Defense Delays Cloud Computing Contract: What You Need To Know
  • Microsoft issued talking points to other cloud companies to lobby the U.S. jointly, requiring significant government projects to use multi-cloud service providers.
  • Amazon dominated the cloud-infrastructure industry with a 39% share of the 2021 global market, ahead of Microsoft in the second position with a 21% share.
  • Amazon's cloud had a 47% share of the 2021 U.S. and Canada public-sector market orders, ahead of 28% for Microsoft.
  • In 2021, the National Security Agency chose Amazon as the sole vendor for a cloud contract worth as much as $10 billion over the next decade, renewing an existing business relationship.
  • Cloud business is critical to Microsoft's earnings, representing half of its total sales. 
  • The Pentagon embraced a multi-cloud approach in 2021. 
  • Despite being a favorite, Amazon lost out to Microsoft for a massive Pentagon cloud-computing deal. 
  • Amazon contested the award, and the Pentagon scrapped the contract, saying it would award contracts to multiple vendors in its future agreement.
  • Previously, the Central Intelligence Agency, which had worked with Amazon for its cloud services, said it would adopt a multi-cloud strategy.
  • Recently Microsoft reported its Q4 miss justifying it with higher fluctuations in currencies and production shutdowns in China. 
  • Earlier this year, Google cloud unit formed a team to build services for developers running blockchain applications to grow its cloud share.
  • Price Action: MSFT shares traded higher by 5.24% at $265.11 on the last check Wednesday.
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