Microsoft's VARs beat Google' G-Suite to $8 billion military contract

As predicted, Google did not stand a chance in the race to be the back-end office suite supplier for the US Defense Department.

In the so-called Defense Enterprise Office Solutions (DEOS) bid Microsoft would be the solution provider for a number of other 3rd party companies who will actually be servicing the contract, meaning while there is set to be many bidders, the main beneficiary will always be Microsoft.

Today the US Department of Defense and General Services Administration announced that the $8 billion Defense Enterprise Office Solutions (DEOS) contract will be awarded to CSRA LLC and its contractor teaming partners Dell Marketing L.P. and Minburn Technology Group LLC, in effect crowning Microsoft is the chief beneficiary, as the companies plan to use Office 365 as their software solution.

This 10-year deal will see the replacement of the Department of Defense’s legacy productivity software with more modern, cloud-based technology for over 3 million military personnel. The intent is for DEOS to replace all the disparate, duplicative collaboration tools Defense Department agencies use around the world. Components, including the Army, Navy and Air Force, “will be required” to use the same cloud-based business tools.

“DEOS will streamline our use of cloud email and collaborative tools while enhancing cybersecurity and information sharing based on standardized needs and market offerings,” Department of Defense Chief Information Officer Dana Deasy said in a statement.

Microsoft’s closest competitor was Google with its G-Suite, but that company has only managed to corner a minuscule part of the government market, and lack the sophisticated certifications Microsoft has already collected and are on the way to acquiring.

“Even if Google were trying to get involved in DEOS, it is not readily obvious they could even meet the certifications in time,” Bloomberg Government analyst Chris Cornillie, said previously. “Microsoft is not the only player in town, but they are the only player in town capable of meeting [Impact Levels] 5 and 6 and delivering what the Defense Department says it wants.”

While Microsoft is still combatting Amazon for the $10 billion Pentagon JEDI contract, Microsoft has been forging ahead with collecting other government business, with the potential of Microsoft becoming the largest cloud vendor for the federal market.

Via Business Insider