Impact of DoD’s sole-source cloud contract on industry

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When the Department of Defense unveiled their plan to obtain a new cloud computing contract, the industry response was somewhat tepid. According to GovernmentCloudInsider, industry members were concerned that the plan was written so that only one vendor would be able to secure the contract, raising concerns over market competition.

“Contracts don’t last forever, but the line of reasoning goes: if you buy into a solution than you may have locked yourself into that solution.” said Larry Allen, president of Allen Federal Business Partners. “By buying into the Amazon platform, it may be more difficult down the road to change your approach, change how you do things, and that’s a concern that’s being voiced.”

Because of the single-source contract, Amazon seems to be biggest player in the game, something that other cloud providers have taken notice of.

“There are a lot of companies that have very good web-based cloud solutions,” Allen told Government Matters’ Francis Rose. “But companies are on notice that they have to make a great first impression for their solutions to be viewed on an even playing field.

The Department of Defense is aiming to clear up any contract confusion at an industry day on March 7th.