Microsoft CEO Satya Nadella speaks at the Digital-Life-Design conference in Munich, Germany on January 16, 2017.
Tobias Hase | dpa | Getty Images
Microsoft has emerged victorious in dramatic competition for public cloud resources for the US Department of Defense, beating Amazon Web Services market leader, the Pentagon reported Friday. According to the declaration, the contract could cost up to $ 10 billion a decade.
Microsoft shares rose 2.3% in long-term trading after the announcement, while Amazon shares fell over 0.5%.
The achievement highlights the emergence of Microsoft's Azure cloud as a challenger to AWS, and represents the latest victory for Satya Nadella, who took over Steve Ballmer as chief of Microsoft in 201
If you complete the $ 10 billion deal, it will probably be a bigger deal for Microsoft than it would be for Amazon. Microsoft does not disclose Azure earnings in dollar numbers, but it is estimated to have a smaller market share than Amazon, which earned $ 9 billion in revenue from AWS.
Other, smaller cloud rivals such as IBM and Oracle were thrown out earlier in the process, which is controversial and entertaining.
In July, President Trump said he was looking at the contract after companies protested the contract. Then Secretary of Defense Mark Esper said he would look into it. Then, earlier this week, the Pentagon said Esper had dropped out of the process because his son, Luke Esper, was working at IBM.
At the beginning of the process, Amazon was seen as a favorite, in part because its AWS business won a CIA deal in 2013.
Nadela once ran the Azure business, among other responsibilities in her 27-year career at Microsoft.
This is the breaking news. Please check back for updates.
WATCH: Nadella makes the cloud a "massive part" of Microsoft: Fund Manager