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Microsoft Takes on Trump after JEDI Cloud Contract Win

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Microsoft (NASDAQ:MSFT) supports a court case that seeks to thwart a rule from the Trump administration. Overall, the rule aims to restrict the flow of immigrant workers into the US, according to a Recode report. Under the rule, the Trump administration would prevent immigrants from entering the US who would depend on public benefits like food stamps. In addition to Microsoft, the other technology companies that oppose the rule include Twitter (NYSE:TWTR), Facebook (NASDAQ:FB), Amazon (NASDAQ:AMZN), and Google (NASDAQ:GOOGL).

Notably, the companies oppose the rule because they fear that it will hamper them hiring migrant workers.

“Our nation’s strength comes from our ability to attract top talent from around the world to come and contribute to our economy,” Microsoft told Recode. The company is concerned that the rule would have a negative impact on employment prospects for migrants with disabilities.

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Microsoft challenges the Trump administration

In October last year, the Pentagon awarded Microsoft the JEDI (Joint Enterprise Defense Infrastructure) cloud computing contract worth $10 billion. The company competed for the contract with Amazon, Oracle, and IBM. However, only Microsoft and Amazon made it to the shortlist of contenders for the contract.

Microsoft’s JEDI contract win was a big surprise for Amazon. According to Amazon, President Trump interfered in the Pentagon selecting the JEDI contract winner. President Trump has been a big critic of Amazon CEO Jeff Bezos. The company said that President Trump brought his disagreement with Bezos to the JEDI contracting process.

Microsoft and Amazon are the world’s leading cloud computing companies. However, Amazon is far ahead. The company controls about a 38% share of the worldwide cloud market, according to Synergy Research data. In comparison, Microsoft controls about an 18% share of the market. Google is third with roughly an 8.0% share of the global cloud market. Meanwhile, Google has also faced criticism from President Trump. As a result, the company intentionally gave the JEDI contract contest a wide berth.

Google has staffed its cloud team with several former Oracle and SAP executives. The company aims to overtake Microsoft as the world’s second-largest cloud computing company by 2024.

$266 billion up for grabs in the cloud market in 2020

More businesses are embracing cloud computing, which is widening the addressable market for cloud vendors like Microsoft. So, the spending on cloud computing services will top $266 billion this year, according to Gartner estimates. The spending could hit $355 billion by 2022 from $197 billion in 2018.

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