It's not only about the $10 billion. Microsoft has essentially cemented being the cloud provider for the Pentagon for the foreseeable future.
Once all of the pentagon is integrated with Azure, after the 10 years are up, it will be very unlikely for Pentagon to want to switch, not only due to costs, but everyone will have been trained specifically for handling Azure.
This gives Microsoft a massive lead in terms of government infrastructure and all but guarantees we'll be seeing more and more contracts handed to Azure.
Yeah, but if MS wants that headache, why not let them have it?
Politics nowadays are just way too unpredictable and destructive. Just best not to be anywhere near it when, say, cost overruns on this project happen and you still haven't delivered anything the DoD is actually using.
AWS certainly has numerous US government contracts; however, none of those are from the Pentagon. With the awarding of the contract, the Pentagon specifically has chosen Microsoft over AWS.
Once all of the pentagon is integrated with Azure, after the 10 years are up, it will be very unlikely for Pentagon to want to switch, not only due to costs, but everyone will have been trained specifically for handling Azure.
This gives Microsoft a massive lead in terms of government infrastructure and all but guarantees we'll be seeing more and more contracts handed to Azure.