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Microsoft Teases New Cloud Services in Battle for $10B Pentagon Deal

Microsoft said it plans to launch new Azure cloud services early next year that will let government customers store secret-level classified data on its servers, according to this report from FedScoop. The announcement ups the ante in Microsoft’s battle with Amazon Web Services for a $10 billion deal to provide cloud services to the Department of Defense, and comes a day after Google removed itself from the running over ethical concerns. 

AWS is seen as the favorite to win the deal because it offers a wider range of services than rivals and because it already handles sensitive data for other government agencies, such as the Central Intelligence Agency. No matter how things turn out, this is a chance for Microsoft to play the underdog role, which feeds nicely into the “new Microsoft” narrative that CEO Satya Nadella has brought to the company in his four-plus years at the helm. 

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