Some Happy, Some Sad in Seattle Over Cloud Deal Review

July 12, 2018

I know little about the procurement skirmishes fought over multi billion dollar deals for cloud services. The pragmatic part of my experience suggests that the last thing most statement of work and contract processes produce is efficient, cost effective contracts. Quite a few COTRs, lawyers, super grades, and mere SETAs depend on three things:

  1. Complex, lengthy processes; that is, work producing tasks
  2. Multiple vendors; for example, how many databases does one agency need? Answer: Many, many databases. Believe me, there are many great reasons ranging from the way things work in Washington to legacy systems which will never be improved in my lifetime.
  3. Politics. Ah, yes, lobbyists, special interests, friends of friends, and sometimes the fact that a senior official knows that a person once worked at a specific outfit.

When I read, “Deasy Pauses on JEDI Cloud Acquisition,” I immediately thought about the giant incumbent database champions like IBM Federal Systems and Oracle’s government operations unit.

deasy

Department of Defense CIO Dana Deasy wants a “full top down, bottom up review” of the JEDI infrastructure acquisition.

But there was a moment of reflection, when I realized that this procurement tussle will have significant impact on the Seattle area. You know, Seattle, the city which has delivered Microsoft Bob and the Amazon mobile phone.

Microsoft and Amazon are in the cloud business. Microsoft is the newcomer, but it is the outfit which has the desktops of many government agencies. Everyone loves SharePoint. The Department of Defense could not hold a briefing without PowerPoint.

Let’s not forget Amazon. That is the platform used by most government workers, their families, and possibly their friends if that Amazon account slips into the wild. Who could exist in Tyson’s Corner or Gaithersburg without Amazon delivering essential foods such as probiotic supplements for the dog.

Microsoft is probably thrilled that the JEDI procurement continues to be a work in progress. Amazon, on the other hand, is likely to be concerned that its slam dunk for a government cloud game home run has been halted due to procedural thunderstorms.

Thus, part of Seattle is really happy. Another part of Seattle is not so happy.

Since I don’t’ have a dog in this fight, my hunch is that little in Washington, DC changes from administrative change to administrative change.

But this Seattle dust up will be interesting to watch. I think it will have a significant impact on Amazon and Microsoft. IBM Federal Systems and Oracle will be largely unscathed.

Exciting procurement activity is underway. Defense Department CIO Deasy Deasy’s promise of a “full top down, bottom up review” sounds like the words to a song I have heard many times.

With $10 billion in play, how long will that review take? My hunch is that it will introduce the new CIO to a new concept, “government time.”

Stephen E Arnold, July 12, 2018

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