Trump told Mattis to 'screw Amazon' out of $10 billion Pentagon cloud contract


President Donald Trump welcomes James Mattis as they cause for a photograph before their meeting at Trump International Golf Club, in Bedminster administrative district, New Jersey.

Drew Angerer | Getty pictures

An forthcoming book on James Mattis' tenure as secretary of Defense claims President Donald Trump told Mattis to "screw Amazon" out of a $10 billion cloud contract for the Pentagon.

The Joint Enterprise Defense Infrastructure, or JEDI, contract was awarded to Microsoft late Fri evening, causing shares of Microsoft top off over third-dimensional.

Early within the method market leader Amazon was seen because the favorite, then President Trump aforesaid in July that he was trying into the contract once firms protested the bidding method.

In the summer of 2018, President Trump referred to as Mattis and directed him to "screw Amazon" out of an opportunity to bid on the JEDI contract, consistent with the forthcoming book "Holding The Line: within Trump's Pentagon with Secretary Mattis."  The account was written by Guy Snodgrass, WHO served as a writer for Mattis.

"Relaying the story to United States of America throughout tiny cluster, Mattis aforesaid, 'We're not planning to do this. this may be done by the book, each wrongfully and ethically,'" Snodgrass writes. CNBC has reviewed the relevant passages of the book.

The Department of Defense and therefore the White House couldn't be straightaway reached for comment. Neither Amazon nor Microsoft were straightaway obtainable for touch upon the president's alleged order.

The contract is capped at $10 billion over future 10 years. If it finally ends up being value that abundant, it might probably be a much bigger deal to Microsoft than it might are to Amazon. Microsoft doesn't disclose Azure revenue in greenback figures however it's wide believed to possess a smaller share of the market than Amazon, that received $9 billion in revenue from AWS within the third quarter.

"We're shocked regarding this conclusion," Associate in Nursing AWS interpreter told CNBC in Associate in Nursing email on Fri, once the contract was awarded to Microsoft. "AWS is that the clear leader in cloud computing, and an in depth assessment strictly on the comparative offerings clearly cause a unique conclusion. we have a tendency to stay deeply committed to continued to pioneer for the new digital piece of ground wherever security, efficiency, resiliency, and quantifiability of resources are often the distinction between success and failure."

Wedbush analyst Dan Ives referred to as the deal a "game changer" for Microsoft, writing in a very note to purchasers that the deal "will have a ripple result for the company's cloud business for years to return." He conjointly aforesaid that he expects Amazon to challenge the end result in court, except for Microsoft to prevail.

Amazon corporate executive Jeff Bezos has been a relentless supply of frustration for the president. Bezos owns The Washington Post, that Trump often criticizes for its coverage of his administration. Trump conjointly has gone once Amazon repeatedly on different fronts, like claiming it doesn't pay its fair proportion of taxes and rips off the U.S. Post workplace.
-- CNBC's Kate Fazzini and Jordan Novet contributed to this report.

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