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Tuesday, March 19, 2013

The CIA Is About To Sign A Game-Changing $600 Million Deal With Amazon

The CIA is on the verge of signing a cloud computing contract with Amazon, worth up to $600 million over 10 years, reports Frank Konkel at Federal Computer Week. If the details about this deal are true, it could be a game-changer for the enterprise cloud market. That’s because Amazon Web Services will help the CIA build a “private cloud” filled with technologies like big data, reports Konkel, citing unnamed sources.

In general, the term “private cloud” means using cloud computing technologies in a company’s own data center.  This still uses hardware hosted by Amazon, but adds extra security to make it behave more like a private datacenter.

If Amazon were really to enter the private cloud business, this could be a big threat to VMware and Citrix, the two biggest players in this market.

Whether Amazon has had a massive change of heart about private clouds or not, gaining the CIA as a customer is a major coup.  Competitors like IBM, HP, and Rackspace say their clouds are more reliable and far more secure than Amazon’s.


Posted on 03/19