The deal adds some luster to AWS, the market leader in cloud computing, as a vote of confidence in Amazon's ability to provide a highly reliable and highly secure private cloud computing environment.
But the deal might also suggest that the CIA sees cloud computing as a more cost effective way to take advantage of the latest developments in commercial technology and rapid innovation, compared to older ways of creating information technology assets, especially developing key systems "in house."
Instead, the CIA seems to be sending a clear message that commodity hardware platforms, married to software as a service, are not only more effective (works better), but also more efficient (costs less).
One would suspect the deal increases the likelihood of additional wins in the federal government segment of the communications and IT business. Perhaps oddly, most of the estimate revenue in the cloud computing business might not come from core "computing" services, but from the purchase of cloud-based applications (software as a service).
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