SpyNet: CIA goes shopping at Amazon …

And, it’s not for books … it’s for cloud computing services.

Say, what?

The WSJ reports that Amazon is vying against IBM for a $600 million contract to set up a cloud-computing system for the CIA.


Here are some highlights …



Companies like IBM have long supplied the U.S. military and intelligence services with computers, software and the know-how to operate them.

Now, new contenders like Amazon are getting into the act, drawn by a fresh source of revenue.

The Defense Department, which manages many of the nation’s intelligence assets, including the National Security Agency, spends about $35 billion annually on information technology..

The bulk of that technology spending – building and managing computer systems – goes to large, older technology companies and contractors such as Raytheon, HP, Boeing and  CSC. 

But the rise of cloud computing — where users share space on hundreds or thousands of Internet-connected servers — has created an opening for less traditional vendors.

Amazon is the leading provider of cloud-computing services.

Launched in 2006, Amazon Web Services now serves hundreds of thousands of customers in more than 190 countries.

The CIA surprised IBM earlier this year when it picked Amazon to build a cloud-computing service that would connect the broader intelligence community.

IBM protested the award, and the GAO recommended that the CIA reopen negotiations.



And I thought Amazon was just an online bookstore …

Think that the CIA will get free 2-day delivery??

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