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

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 ORCL, Vmware, Inc VMW, Dell Technologies Inc DELL, International Business Machines Corp IBM, Hewlett 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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