Cloud computing deal for Amazon and Microsoft

Amazon and Microsoft have just signed a $100m (£650,000) cloud computing deal, leaving IBM out in the cold.

The two companies are now cloud computing providers for the Federal Aviation Administration (FAA) in the US. The FAA’s data centres will be consolidated and moved over to Microsoft Azure and Amazon Web Services (AWS) cloud computing services. The contract is thought to be worth $108m in the first instance; however, it is a long-term contract and could be worth up to $1bn over a period of 10 years.

Unlike companies such as Yamaha of America and Netflix, which have moved everything over to their cloud provider, the FAA is not disposing of its own data centres completely; instead, it will be reducing the size of its data centres and will be using the two cloud services as much as possible in a hybrid system. This an option many companies are taking.

Experts have noted that IBM did not make the cut, even though IBM has a history with the FAA. It has also been noted that the FAA is not cutting its ties with IBM; instead, it simply did not choose the company to provide its cloud services.

IBM is currently the third-largest provider of cloud services behind Amazon AWS and Microsoft. Amazon has already beaten IBM to a cloud computing contract for the CIA and this contract has reportedly impressed other intelligence agencies.

IBM has chosen not to comment on this latest news, but has said that its own cloud computing business is strong and growing.