Where Will AWS Land with Respect to Government Contracts?
Now that AWS has secured a spot on the Joint Warfighting Cloud Capability (JWCC) contract, and signed a $724 million contract with the Navy, the question becomes when the cloud provider will profit from those deals.
None of the JWCC’s cloud providers — AWS, Microsoft Azure, Google Cloud and Oracle Cloud — is getting a cut of the $9 billion contract right away. Instead, they’ll see revenue from individual task orders — and the companies will compete for those. The Navy contract, meanwhile, gives the Department of the Navy clearance to buy AWS tools to modernize enterprise architecture.
Investors and stakeholders will be watching AWS’ progress on government contracts in 2023.
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