IBM gives up the ghost on CIA cloud battle with Amazon

IBM(s ibm) has ceded the construction of the CIA cloud to rival Amazon(s amzn) Web Services, according to a Federal Computer Week report.

This has been quite the battle royale since word leaked in March that the CIA had awarded the $600 million contract to Amazon, accepting a bid that was $54 million higher than IBM’s.

IBM cried foul and the Government Accountability Office agreed┬áthat the contract should be rebid. AWS appealed that decision and prevailed last month. IBM vowed to appeal but apparently that’s all over now.

The bid was seen as critical for both companies. AWS, king of public cloud, wanted it to show it could build cloud infrastructure suitable for super-secretive customers. IBM needed it to show it could build a cloud, period. AWS is increasingly seen as a competitor for enterprise workloads that used to flow to established IT companies like, well, IBM.

I’ve contacted both IBM and AWS for comment and will update this report as needed.