The Redmond, Wash.-based software giant beat out rival Amazon.com (AMZN) - Get Report in the final round for the Joint Enterprise Defense Infrastructure, or JEDI, deal. IBM Corp. (IBM) - Get Report and Oracle Corp. (ORCL) - Get Report were eliminated in earlier rounds of consideration.
Amazon dominates the cloud computing space with about 33% of the business, while Microsoft trails with about 16%.
President Donald Trump called for a review of the contract process last summer as incoming Defense Secretary Mark Esper took office. That move came as many pundits were expecting Amazon to win the deal.
Trump has famously feuded with Amazon CEO Jeff Bezos, who owns the Washington Post newspaper. At the time of the review, Trump said he'd received multiple complaints from other companies about the bidding process.
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