Google Awarded 'Seven Figure' DoD Cloud Contract

Google will assist the Defense Innovation Unit with cloud infrastructure technology.
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Alphabet's  (GOOGL) - Get Report Google landed a cloud contract with the U.S. Defense Department in the "seven figures" to help the federal government with cyberthreats, according to a news report Wednesday. 

The department's Defense Innovation Unit (DIU) gave out the contract, according to an Axios report, to Google to help "detect, protect against, and respond to cyber threats."

Google told Axios that the deal was in the "seven figures" without being more specific. 

"Multi-cloud is the future. This is now coming to the federal government as well," Mike Daniels, Google cloud vice president of public sector, told Axios. 

The Google contract is part of the DIU's move towards what it calls a "zero trust" environment where devices are not able to access network resources simply based on their physical location. 

Instead they want the devices to be granted access to network resources based on factors such as identity and behavior. 

The DIU was founded during the Obama era in 2015. The DIU says that it operates "at the intersection of technology, business, and national security." It serves as a link between commercial technology and the U.S. military's own advancement efforts in five areas: AI, autonomy, cyber, human systems and space. 

The Department of Defense recently came under scrutiny after Amazon  (AMZN) - Get Report filed a lawsuit claiming that the White House influenced a decision to award a massive $10 billion cloud contract to Microsoft  (MSFT) - Get Report because of President Trump's dislike of Amazon CEO Jeff Bezos. 

That lawsuit has been put on hold for at least another three months following a court order in April. 

Alphabet shares were rising 2% to $1,401.59 Wednesday. 

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