Huh, I find it weird that Amazon and Msft fought so rabidly for the $10B JEDI contract, and this $22B contract seems to have gone through without any fanfare. This is 10x what Facebook paid for Oculus. I wonder what MSFT showed to them in the demos. I imagine it must have been mindblowing.
They still get to actually sell services after that, though. If you just divide Amazon's original $600 million contract for 10 years for C2S, that's $5 million a month. I can tell you when I was working for a single large program that hadn't even gone into ops yet last year, we were paying over $5 million a month per environment, and we had three environments. That's just a single tenant.
In contrast, this contract for AR HUDs is much more likely just a straightforward charge once, build once order. There's no additional money to be made on the backend selling in app purchases to platoons or add-on services. For JEDI, after building the cloud, Microsoft still gets to actually sell its IaaS, PaaS, and SaaS services on top of that.