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$AMZN Said to be Close to a Cloud Computing Deal with The CIA

“The CIA is on the verge of signing a cloud computing contract with Amazon, worth up to $600 million over 10 years, reports Frank Konkel at Federal Computer Week.

If the details about this deal are true, it could be a game-changer for the enterprise cloud market.

That’s because Amazon Web Services will help the CIA build a “private cloud” filled with technologies like big data, reports Konkel, citing unnamed sources.

The CIA is pretty closed-lipped about its business, as spies are apt to be. This is no exception. It won’t confirm the deal or comment on it, so details are sketchy. But the contract is expected to be for a “private” cloud, which is not what AWS is known for.

AWS is the largest “public” cloud provider. In general, the term “private cloud” means using cloud computing technologies in a company’s own data center. Public clouds are in hosted facilities, where the hardware is shared with many users. Sharing the hardware saves money.

Amazon hasn’t been very interested private clouds. Years ago, it even argued against them.  If companies want private clouds based on Amazon’s tech, they often go to startups like Eucalyptus Systems….”

 

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