Contract will be worth $600M USD, but is expected to be cheaper than a self-built solution

Federal agencies have traditionally adopted a do-it-yourself approach to hosting and online presence management.  But the U.S. Central Intelligence Agency (CIA) is shaking up that tradition, awarding a massive $600M USD, 10-year contract to, Inc. (AMZN), according to a new report.

I. Secret Contract?

The Intelligence Community Information Technology Enterprise (IC ITE) strategy, which calls for "greater integration, information sharing, and information safeguarding through a common (intelligence community) IT approach that substantially reduces costs" a series of guidelines published by the office of the Director of National Intelligence to improve national cybersecurity.  The language suggests intelligence agencies create secure, shared clouds.

Amazon is a top player in the cloud and SaaS industries. [Image Source: Murphy & Co.]

Amazon -- one of the world's biggest cloud hosts -- seems to be purpose-built for that role.  Dave Powner, director of IT management issues at the Government Accountability Office, told online magazine FCW in an interview that the contract should help the CIA achieve that goal amid a harsh fiscal climate, stating, "In times of reducing budget situations you would expect to see agencies that haven't considered cloud solutions extensively in the past would be looking more and more of doing something along those lines."

The CIA and Amazon would neither confirm nor deny the contract, which was reported by FCW.  A CIA spokesperson said, "As a general rule, the CIA does not publicly disclose details of our contracts, the identities of our contractors, the contract values, or the scope of work."

II. CIA Drops Hints That It's Shacking up With Amazon

However, the contract may have been hinted at by the CIA's Chief Information Officer Jeanne Tisinger in a March 12 speech to the Northern Virginia Technology Council Board of Directors.  In that speech she stated that the shorter cycles and faster development pace of the corporate IT services industry provide advantages.  She says that exploring software-as-a-service (SaaS) and commodity IT options could cut costs.

Audience members of the closed door meeting recall Ms. Tisinger stating that the CIA was working "with companies like Amazon."

General Keith Alexander
CIA leaders (General Keith Alexander pictured) have praised Amazon in past interviews.
[Image Source: DefenseTech]

CIA Chief Technology Officer Gus Hunt also told Reuters in a previous interview that when it came to the government acquiring "metered" cloud services that it should turn to the private sector.  He is quoted as saying, "Think Amazon – that model really works."

It is unclear whether the new cloud (assuming it exists) will be housed internally (set up on site by Amazon) or remotely.  Also unclear is how much of the agency's current proprietary clouds will be replaced by the new third-party-supplied homogeneous cloud.  But what is clear is that the agency is shifting towards leveraging the efficiency of non-government commodity IT to cut its technology costs.

Sources: FSW, Reuters

"Vista runs on Atom ... It's just no one uses it". -- Intel CEO Paul Otellini

Most Popular ArticlesSuper Hi- Vision Will Amaze the World
January 16, 2017, 9:53 AM
Samsung Chromebook Plus – Coming in February 2017
January 17, 2017, 12:01 AM
Samsung 2017 Handset’s Updates
January 17, 2017, 12:01 AM
Teclast Tbook X5 Pro - Coming January 23
January 16, 2017, 9:21 AM
Gionee Marathon M5 Plus – China’s Flagship Smartphone
January 15, 2017, 2:02 AM

Latest Blog Posts
Some new News
Saimin Nidarson - Jan 23, 2017, 8:59 AM
What is new?
Saimin Nidarson - Jan 22, 2017, 7:00 AM
Saimin Nidarson - Jan 20, 2017, 7:00 AM
News of the World
Saimin Nidarson - Jan 19, 2017, 7:00 AM
Some tips
Saimin Nidarson - Jan 17, 2017, 12:16 AM
News of the Day
DailyTech Staff - Jan 16, 2017, 12:10 PM
Tech News
Saimin Nidarson - Jan 15, 2017, 12:32 AM
Here is Some News
Saimin Nidarson - Jan 14, 2017, 12:39 AM
News around the world
Saimin Nidarson - Jan 12, 2017, 12:01 AM
Rumors and Announcements
Saimin Nidarson - Jan 11, 2017, 12:01 AM
Some news of Day
Saimin Nidarson - Jan 7, 2017, 12:01 AM
News 2017 CES
Saimin Nidarson - Jan 6, 2017, 12:01 AM

Copyright 2017 DailyTech LLC. - RSS Feed | Advertise | About Us | Ethics | FAQ | Terms, Conditions & Privacy Information | Kristopher Kubicki