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Amazon wins case for $600 million CIA contract

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Amazon Press Event
Amazon Press Event

A new ruling today clears the path for Amazon's planned $600 million cloud storage contract with the CIA. Experts say the cloud storage will be used for the agency's least sensitive and most commonly accessed information, with a higher tier of security protecting more classified data. Amazon had been named for the contract earlier this year, but a series of lawsuits with IBM threatened to reopen bidding. Today's ruling from the US Court of Federal Claims heads off that process, securing Amazon's claim, although an IBM spokesperson says the company plans to appeal the ruling.

It's one of Amazon's highest profile contracts since they opened up a dedicated government sales division several years ago, and has required hiring over 100 IT professionals with top secret security clearances. A 2011 report found dozens of government offices relying on Amazon-powered cloud services, including the Treasury and State Departments.