The fight by Microsoft and Amazon for the Pentagon's cloud contract

FILE PHOTO: A Microsoft logo is pictured on a store in the Manhattan borough of New York City, New York, U.S., January 25, 2021. REUTERS/Carlo Allegri

WASHINGTON (Reuters) -The U.S. Defense Department dealt a blow to Microsoft Corp on Tuesday when the Pentagon announced it was scrapping the Trump-era award of a $10 billion JEDI cloud-computing project.

The government will hold a new round of bids and allow multiple companies to compete, including rival Amazon.com.