Microsoft recently won a tangential victory with the Pentagon, where its contractual partner General Dynamics convinced the United States Department of Defense to use the software and Microsoft 365 productivity solutions.
While it is not the $ 10 billion multi-year white whale JEDI contract for which the company has been competing, this new $ 7.6 billion deal puts Microsoft and General Dynamics comfortably within the spirit of the Department of Defenses.
Thanks to a rather obscured offer platform called GSA IT Schedule 70, the agency's eBuy platform, this contract has been relatively protected from the same type of public scrutiny that the DoD JEDI contract has undergone. In addition to the fact that Amazon refused to bid on the contract, it seems that it should have been a relatively easy sale for Microsoft contractors.
The new Enterprise Office Solutions (DEOS) Defense agreement would consist of GDIT, a subsidiary of General Dynamics Corp. and its partners, Dell Marketing LP and Minburn Technology Group LLC, dividing the duties of the DoD transition to based solutions in the cloud based on Microsoft 365 for the next 10 years with a renewal option during the 5 years of the contract, according to reports from the Washington Business Journal and Bloomberg.
"DEOS will streamline our use of cloud email and collaboration tools while improving cybersecurity and information exchange based on standardized needs and market offerings," said Dana Deasy, director of information for the DOD in a statement.
More specifically, Microsoft 365 software and services will be distributed to more than 3 million employees and customers of the Department of Defense over the next 10 years. Brian Herman, an official of the Defense Information Systems Agency spoke with SiliconANGLE and explained that the department plans to migrate 1.5 million users to Microsoft's productivity package within the first 18 months of the contract that includes the use of the productivity package Office 365, various messages and chat services, content management tools, analysis software, collaboration interfaces and more.
According to Herman, the real heavy work will come from simply transferring the staff of the old DoD personalized business email system to more modern communication tools.
Despite the odds weigh heavily in favor of Amazon for the award of the JEDI DoD contract, this recent DEOS agreement validates Microsoft's commitment to security, as the requirements for the contract included a DoD Impact security level Level 5 and 6, which only Amazon and presumably Microsoft software have managed to approve.
Ideally, Microsoft could take advantage of the use of Microsoft 365 to modernize and produce an even more vertically integrated offer for the JEDI contract over the next few weeks while requests are on hold during their surveillance review.
Further reading: Amazon, Bloomberg, DEOS, DoD, GSA, Jedi, Microsoft, Pentagon