IBM, Verizon could win up to $1 billion in federal cloud contracts

The Interior Department has selected 10 cloud companies to compete for a total of $10 billion in contracts, the department announced in a blog post.

Contract competitors include AT&T, Verizon, IBM, Lockheed Martin, Unisys, Global Technology Resources, CGI, Autonomic Resources, Smartronix and Aquilent. The companies will compete for individual projects, with each participant’s total contracts capped at $1 billion.

The move is expected to result in $100 million in benefits each year from 2016 to 2020, Interior Department Deputy Assistant Secretary for Technology, Information and Business Services Andrew Jackson wrote in a post.

“By doing it this way, Interior hopes to ensure the most competitive prices throughout the life of the contract.”

The first project will be for hosting applications — future projects will include data storage and virtual machines, among others.

“We believe that having ready access to cloud hosting services like these will allow us to begin the process of closing or consolidating potentially hundreds of DOI data centers currently in use,” Jackson wrote.

This is a continuation of the department’s cloud strategy — last year, it awarded a $34 million, seven-year contract to Google’s Apps for Government service.

Mohana Ravindranath covers IT and small business for the Washington Post and its weekly Capital Business publication.
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