Amazon wins CIA cloud contract as IBM ends protest

|By:, SA News Editor

IBM (IBM -0.2%) has withdrawn its protest of a $600M contract handed by the CIA to Amazon Web Services (AMZN +0.3%). The withdrawal, which follows a court ruling in Amazon's favor, clears the way for Amazon to build a private cloud infrastructure for the CIA in what's likely to serve as an important reference deal when competing for future enterprise/government contracts.

Amazon's "Other" North American sales, dominated by AWS, jumped 56% Y/Y in Q3 to $1.01B. However, much of AWS' growth thus far has come from Web/cloud service providers such as Dropbox, Pinterest, Netflix, and Salesforce's Heroku unit. While AWS has gradually been making enterprise inroads, it also faces strong competition here from IBM, Microsoft's Windows Azure, VMware's vCloud Hybrid, and Verizon Cloud, among others.

IBM scored a 10-year, $1B, cloud services deal from the Department of the Interior in August.