Oct 7 A U.S. court ruled in favor of Amazon.com
Inc, which is locked in a dispute with International
Business Machines over a $600 million cloud computing
contract awarded by the Central Intelligence Agency, a court
Amazon Web Services (AWS), a unit of online retailer
Amazon.com, beat out IBM earlier this year to win the CIA
When AWS won, IBM protested, triggering a report by the U.S.
Government Accountability Office (GAO), which recommended in
June that the CIA re-do some parts of its contract negotiations,
giving IBM another chance to bid.
But the GAO also stated that AWS's offering was superior.
Amazon filed a legal complaint against GAO's recommendation
that the CIA could give IBM another chance to bid for the
On Monday, oral arguments were held before Judge Thomas
Wheeler of the U.S. Court of Federal Claims.
At the end of the arguments, Wheeler ruled for Amazon and
against IBM, which had intervened in the case. A written opinion
will follow, according to a court notice.
The Wall Street Journal reported that IBM would appeal the
ruling by the Federal Claims court. IBM and Amazon could not
immediately be reached for comment by Reuters outside of regular
U.S. business hours.
Public cloud computing, which AWS pioneered in 2006, lets
companies rent computing power, storage and other services from
data centers shared with other customers - typically cheaper and
more flexible than maintaining their own.
The case is in re Amazon Web Services Inc vs United States,
Case No. 13-00506, U.S. Court of Federal Claims.