As AWS, Azure and Google Cloud compete to win the hearts of Government officials, acquiring a top-tier defense contractor would do much to gain the inside track on strategic, DoD/DHS/Govt. mega-contracts. Amazon’s Arlington VA campus suggests it views the D.C./Northern VA area as more long-term strategic than does Microsoft or Google (the latter tends to be the most insular of the three massive cloud services providers).
Those who have lived or done business in the D.C./NoVA area know that what was once a Government contractor town has experienced an influx of Technology companies big and small over the past decade. Amazon for one is setting-up shop in Arlington VA in the heart of the beltway. The DoD JEDI contract debacle got me thinking, “How could one of the three major cloud services players differentiate itself from the others and capture the hearts and minds of DoD/DHS/Govt. officials? How could one provider graduate from little red wagon to red Ferrari status?” An audacious acquisition would do the trick. Amazon (tkr: AMZN), is the only provider of the three that has demonstrated an appetite for picking fights outside of its comfort zone. Thus, we would not be surprised to see Amazon acquire a top-tier Government services firm such as Lockheed Martin (tkr: LMT), in the coming years.