US Military Shuns EC2, Building Its Own Cloud (AMZN)

When military officials saw what Amazon (AMZN) was up to with its EC2, and Microsoft (MSFT) with its Azure platform, they were so impressed they knew they wanted in.

But unfortunately for cloud vendors, that meant building their own cloud.

Bloomberg: Garing, who runs the defence Department’s technology infrastructure, is now mimicking the companies’ approach internally, developing his own cloud that agencies share. Going beyond that to tap the resources of the corporate world may not be so easy. While using central data servers could save money and protect information from system failures, agencies are hesitant to give up control of sensitive information.

“If I were king for a day, I would say to Amazon and Salesforce, ‘Why don’t we just use your cloud?'” Garing said in an interview. “We are doing the nation’s business here, and the defence Department can’t afford to go down in any way, shape or form.”

The move by the defence Department is a high-profile endorsement of the cloud concept, but bad news for Amazon in particular: The company recently moved to hire a Washington DC-based salesperson to target the “federal, state and DOD communities.”

See Also:
Amazon Courting Eggheads To Its Cloud With Free Access To Scientific Data
Amazon: We Promise Our EC2 Cloud Will Only Crash Once A Week
Larry Ellison: Someone Explain To Me This “Cloud Computing” Thing My Company Is Committing To

NOW WATCH: Tech Insider videos

Want to read a more in-depth view on the trends influencing Australian business and the global economy? BI / Research is designed to help executives and industry leaders understand the major challenges and opportunities for industry, technology, strategy and the economy in the future. Sign up for free at