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Oracle Challenges Pentagon's $10 Billion Cloud Computing Contract (theregister.co.uk)

Oracle has filed an official complaint with the U.S. government over plans to award the Pentagon's lucrative cloud contract to a single vendor. Rebecca Hill writes via The Register: The Joint Enterprise Defense Infrastructure (JEDI) contract, which has a massive scope, covering different levels of secrecy and classification across all branches of the military, will run for a maximum of 10 years and is worth a potential $10 billion. In spite of this pressure from vendors and the tech lobby -- as well as concerns from Congress -- the US Department of Defense (DoD) refused to budge, and launched a request for proposals (RFP) at the end of last month. Oracle is less than impressed with the Pentagon's failure to back down, and this week filed a bid protest to congressional watchdog the Government Accountability Office asking for the RFP to be amended.

In the protest, the database goliath sets out its arguments against a single vendor award -- broadly that it could damage innovation, competition, and security. Reading between the lines, it doesn't want either of Amazon or Microsoft or Google to get the whole pie to itself, and thus endanger Oracle's cosiness with Uncle Sam. Summing up its position in a statement to The Register, Oracle said that JEDI "virtually assures DoD will be locked into legacy cloud for a decade or more" at a time when cloud technology is changing at an unprecedented pace.

18 of 101 comments (clear)

  1. Oracle might actually have a point here. by sg_oneill · · Score: 4, Insightful

    I fundamentally dislike Oracle. Its an exploitative company that functions purely on ensnaring companies into deals that are far too costly then using legal shenanigans to stop them to leave.

    BUT, they are right here. Giving the whole contract , all ten billion of it, to a single contractor (And lets be clear here, its either AWS or Azure. Google are capable, but they dont have the govt mojo to compete in this space) is straight up monopoly building, and it creates a single point of vunerability to the DODs systems. By splitting things up over multiple providers, it enhances competition, and divides up responsibility in a way better suited to national security.

    And after all, they could still write "NO ORACLES ALLOWED" in it, right. (Well probably not, but hey)

    --
    Excuse the Unicode crap in my posts. That's an apostrophe, and slashdot is busted.
    1. Re:Oracle might actually have a point here. by someone1234 · · Score: 5, Insightful

      Oracle's only problem is that they are not that single contractor.

      --
      Patents Drive Free Software as Hurricanes Drive Construction Industry
    2. Re: Oracle might actually have a point here. by alvinrod · · Score: 2

      This is it right here. Full stop.

      I have never seen Oracle complain when they were the single party awarded a contract, and there are plenty of times where this has happened. Perhaps the best that could be said of them is that they realize how many times they have screwed over the other side in such contracts and that this is a bad idea, but I suspect the real reason is that they are pissed that they do not get to be the ones to screw over the government this time. They just hate the player, not the game.

    3. Re: Oracle might actually have a point here. by Junta · · Score: 3

      This is true, but that makes this all the more significant of a proof point of the value of competition. In a competitive landscape, there's going to be *someone* to call someone else on their shenanigans, even if it another usually bad actor.

      --
      XML is like violence. If it doesn't solve the problem, use more.
    4. Re:Oracle might actually have a point here. by unbound55 · · Score: 2

      In fairness, Oracle's other problem is that many federal agencies are fed up with the massive costs Oracle keeps pushing on them. Oracle hasn't been doing well this year, and the top executives are starting to panic. Maybe Oracle would do better if they actually innovated their products instead of innovating price increases of their products.

    5. Re:Oracle might actually have a point here. by luis_a_espinal · · Score: 2

      I fundamentally dislike Oracle. Its an exploitative company that functions purely on ensnaring companies into deals that are far too costly then using legal shenanigans to stop them to leave.

      BUT, they are right here. Giving the whole contract , all ten billion of it, to a single contractor (And lets be clear here, its either AWS or Azure. Google are capable, but they dont have the govt mojo to compete in this space) is straight up monopoly building, and it creates a single point of vunerability to the DODs systems. By splitting things up over multiple providers, it enhances competition, and divides up responsibility in a way better suited to national security.

      And after all, they could still write "NO ORACLES ALLOWED" in it, right. (Well probably not, but hey)

      I'm on the fence here. I do think Oracle is in the right (Obi Wan's "from a certain point of view.") Such a 10B monopoly cannot be allowed to happen.

      OTH, the benefit of having one cloud provider is seamless integration and scaling. If there are multiple contractors, then that will entail multiple providers, multiple cloud technologies, etc.

      So the entire benefit of going to the cloud goes *poof*. If you (the generic "you") go to the cloud, you want to pick one provider, know the prons and cons and make it work. Otherwise, just don't - build your own facility.

      Having worked at a defense contractor once, I have no high hopes that the government (or defense contractors) will come up with an efficient abstraction on top of multiple providers.

      This is truly an interesting and challenging junction that goes beyond mere technicalities.

    6. Re:Oracle might actually have a point here. by datavirtue · · Score: 2

      So sick of people "deciding on a cloud provider." People just don't get it. Being cloud ready means possessing the ability to move to any of them at any time. If you have to decide on a cloud provider you should just stay on-prem until you can put on your big boy pants.

      Psst...spinning up VMs in the cloud and running your shitty software on them is in no way an advantage or a cost savings...and it certainly doesn't mean you are "in the cloud." Dumb fucks.

      If you are not 12-factor and abstracted from the infrastructure you are not cloud ready--you are locked in.

      --
      I object to power without constructive purpose. --Spock
  2. Question the Pentagon's use of the cloud by Anonymous Coward · · Score: 5, Insightful

    We need to drill deeper than simply reporting on Oracle's protest, and the politics behind it.

    An independent body of security experts should study the Pentagon's use of the cloud in the first place. Simply by moving to cloud computing, the Pentagon is revealing that they underestimate the cyber espionage capabilities of enemy states, and as in the case of Islamic State or Al Qaeda, stateless enemies.

    The same independent body should also study vulnerabilities inherent in military use of the cloud. In an all out war, the enemy first tries to neutralize the command and control infrastructure of their enemy (us). Simply by using the cloud, we are offering the enemy a single neck to chop off, connecting the brain to the body. A secure military force requires so much redundancy, that the enemy has too many necks to chop off to be a feasible strategy.

    1. Re:Question the Pentagon's use of the cloud by Anonymous Coward · · Score: 2, Insightful

      Simply by using the cloud, we are offering the enemy a single neck to chop off

      Your grasp of the subject matter is woefully inadequate. Stop before someone gets injured.

    2. Re:Question the Pentagon's use of the cloud by Junta · · Score: 2

      Broadly speaking, it's a valid concern that we are eager to put all our eggs into as few baskets as possible, and those baskets will have a lot of mono culture in them.

      An adversary discovers a way to access some key part of the power infrastructure of a brand Amazon uses and knows of a vulnerability that can deal persistent damage? Poof things could grind to a halt inflicting significant economic damage, and using an attack of a nature that has thus far not justified forceful retaliation in scenarios where it has happened.

      Even assuming that from a networking and computer security things were perfect, we still have the reality that a military adversary coordinating an attack on 2 dozen sites could cripple our online infrastructure.

      Our love of making these too big to fail companies not only has regrettable economic repercussions, but leaves our online ecosystem way too fragile.

      --
      XML is like violence. If it doesn't solve the problem, use more.
  3. Two sides to that by raymorris · · Score: 5, Interesting

    I suspect the benefit to splitting things up may be obvious enough that I don't need to state it. On the other hand, over the years I've put a lot of thought into why companies use these clouds, and particularly AWS.

    Years ago I developed a small private cloud using a lot of technology I designed and architected myself, with coding help from my employees and a contractor for the UI. It was mostly about storage, and some really nifty ways of managing virtual machines, but the main cost was storage. Multiple people asked me why we didn't use AWS for storage, so even after I had already looked into AWS I double checked a couple more times. What I found was that their storage was MUCH more expensive than some very solid, very flexible storage built from standard open source Linux storage components (cLVM, etc) and some 16-bay Supermicro chassis. AWS was super expensive for storage, and for virtual machines. So why are so many companies using them so much? Years later, I think I have a couple of answers.

    There are a few reasons, but one is the level of integration of advanced things like auto-scale groups. Even getting just a load balancer working PROPERLY and configuring a static cluster of web servers is tricky normally. More often than not, the server clusters I see people deploy aren't actually clusters at all. They are a screwed up hybrid of a true cluster and a bunch of independent mirrors, which breaks things. AWS gives you a solid cluster in a few clicks. You can the easily save your entire cluster setup to your git repo as a Cloud Formation template.

    The big clouds aren't the best way to get storage, they aren't the best way to run virtual machines, they aren't the best way to run databases. The magic is the integration - with a few clicks you have all the right DNS entries pointed to your new cluster of web servers, which talk to your DB cluster through the Lamda functions, all backed by the magic storage in a seamless way. With a beautiful API for programming it all. That's where the value is, how Amazon brings all these different things together seamlessly.

    Breaking your operations up across a bunch of cloud providers meana giving up this seamless integration, duplicating whole data centers to another physical location with a few clicks, and haing everything still work.

    If you're not going to take advantage of how everything is put together, you may as well save a few bucks and have a rack full of Supermicro gear on premises.

    1. Re:Two sides to that by Anonymous Coward · · Score: 2

      It depends on economy of scale. For a small company you are probably correct. As a larger, global company with multiple datacenters around the world we have done the cost comparison multiple times (about once a year for 5 years) and on-prem/private cloud was cheaper every time.

  4. Re:Oracle seems to be right (can we say that?) by ShanghaiBill · · Score: 4, Insightful

    This is the first news about Oracle doing something that I think might not be evil that I have seen.

    Being right is not the same as being good. Oracle is right, but for reasons of pure self-interest. They got a late start in cloud services, lack scale, and are still sucking hind tit, so they have no hope of getting a big winner-takes-all contract. If they can force the DoD to break it up, they have a good chance of getting some portion today, and even more in coming years.

  5. Oracle is weveel. by harvey+the+nerd · · Score: 2

    JEDI banishes the Dark Overlord.,,

  6. No thanks Oracle by eclectro · · Score: 4, Informative

    Bad memories die hard, and your solutions trainwrecked Oregon's healthcare website when other states were able to accomplish more for far less and in a far more timely manner.

    Good thing I'm not in congress, I'd find any way I could to prevent you from bidding on a contract that was critical for our national defense.

    Just get lost already, and let the companies that know what they're doing get the job done.

    --
    Take the cheese to sickbay, the doctor should see it as soon as possible - B'Elanna Torres, "Learning Curve"
  7. Re:I don't trust any of them by dwywit · · Score: 2

    Splitting things between different contractors is just going to end up with people pointing fingers at each other.

    "It's not out fault, talk to {other provider}"

    At least with a single provider you can pin them down.

    --
    They sentenced me to twenty years of boredom
  8. Dead company walking. They just don't realize it by Anonymous Coward · · Score: 2, Insightful

    Dead company walking. They just don't realize it.
    Their clients hate Oracle. If they could, they've fire them today.
    Oracle has been a bully, especially on cloudy stuff.

  9. And... by erp_consultant · · Score: 2

    If Oracle were awarded the contract instead then Amazon or Microsoft would just sit by idly? Of course not. They would launch lawsuits of their own. This story has nothing to do with what's best for the federal government and everything to do with endless corporate greed.

    Obviously Oracle is fighting to prevent a competitor from getting a foot in the door. They want the whole pie for themselves, just like Microsoft and Amazon do.