Amazon Web Services to Provide $1 Billion to US Government Agencies
Amazon Web Services has committed to delivering US government agencies up to $1 billion in savings for cloud adoption, modernization, and training until the end of 2028, according to reports. The agency stated that the deal with Amazon.com’s division will hasten extensive IT transformation throughout the government and drive AI innovation.
A government report released in March indicated that the federal government spends over $100 billion each year on managing IT systems, obtaining new systems, or upgrading existing ones. Amazon has secured billions in contracts to assist federal agencies in moving to the cloud and providing additional services.
The US government has faced challenges for years in upgrading its outdated IT systems.
The contract provides up to $1 billion in direct incentive credits overall among Federal civilian agencies, which includes savings on essential AWS cloud services, as well as modernization and training credits.
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AWS CEO Matt Garman stated, "This historic agreement signifies an important achievement in the extensive digital transformation of governmental services."
Federal agencies will be able to utilize AWS training materials and specialists to assist in transitioning to the cloud. AWS serves over 11,000 governmental organizations globally.
The agreement between GSA and AWS seeks to cut federal IT costs, conserve taxpayer funds, foster innovation and responsiveness in new government services, and ensure America's ongoing dominance in AI, according to the government.
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In 2022, the Pentagon granted $9 billion in cloud computing contracts to AWS, Microsoft Corp, Alphabet Inc’s Google, and Oracle Corp. The Joint Warfighting Cloud Capability succeeded the Joint Enterprise Defense Infrastructure (JEDI) as a multi-cloud initiative aimed at modernizing IT to create a unified, extensive commercial cloud for the Defense Department.
During Trump's initial term, Amazon filed a lawsuit following the $10 billion JEDI contract being granted to Microsoft. Amazon claimed that Trump exerted inappropriate influence on military officials to divert the contract from the company.