IBM has successfully protested a $600M, 10-year deal granted by the CIA to Amazon Web Services...
Jun 7 2013, 12:10 ET
IBM has successfully protested a $600M, 10-year deal granted by the CIA to Amazon Web Services (AMZN +3.6%) to develop a private cloud infrastructure: the GAO says the CIA didn't properly evaluate prices and waived a contract requirement. This means IBM, now set to acquire AWS rival SoftLayer, will have another chance to win the deal. Meanwhile, Forrester's James Staten argues IBM/SoftLayer will face integration challenges, due to their use of rival cloud platforms (IBM uses OpenStack, SoftLayer uses Citrix's (CTXS) CloudStack) and other issues. "SoftLayer ... has two separate portals and a mix of API sets ... IBM has long been accused of being well integrated only so long as you ask IBM Global Services to do the integration work."