Rean Cloud Statement following Department of Defense Intention to Reduce Scope of Production Agreement for Cloud Migration Services

Herndon, VA – March 7, 2018 — REAN CLOUD today announced its disappointment by the attempted reduction of the ceiling of its recently-announced cloud services contract with the Department of Defense (DoD).

“Based on its record of success, REAN Cloud remains confident that it, along with other cloud service providers and vendors, can service the demands of U.S. military customers through existing or other contract vehicles,” said Sekhar Puli, REAN Cloud managing partner.

Recognized in Gartner’s 2017 Magic Quadrant for Hyperscale Cloud Providers and honored as the “Tech Company of the Year” by the Northern Virginia Technology Council among other industry accolades, REAN Cloud, an innovative company, is a leading global cloud systems integrator. By leveraging REAN Cloud’s platform and Cloud Accelerators, companies can automate all stages of the cloud adoption lifecycle such as pre-migration assessment, migration, testing, compliance documentation, operations and more. Through REAN Cloud’s out-of- the-box support, companies can accelerate innovation and respond to business demands without worrying about the non-functional aspects of the deployment process.

The DoD, through the Defense Innovation Unit Experimental (DIUx), began a process nearly two years ago to modernize the nation’s military systems to ensure greater resiliency and readiness.

In April 2017, the Office of the Secretary of Defense announced a competition to accelerate the development, procurement and integration of commercially derived disruptive capabilities. Among many candidates and after several rounds of submissions, REAN Cloud won the chance to perform prototype cloud infrastructure assessments, migrate and otherwise operate for the U.S. Transportation Command (USTRANSCOM), completed by REAN Cloud last year. The scope of the prototype was increased twice during the course of the pilot project.

In November 2017, the project was also recognized by DoD CIO Cyber and IT Excellence Award for its innovative approach to migrating workloads into highly automated and controlled cloud environments, enabling cost savings, accelerated implementation and large-scale modernization.

As part of the next phase, the DoD determined to make REAN Cloud’s offerings available to any entity within the military. As part of the process, REAN Cloud conceived a streamlined procurement procedure to enable agencies to quickly migrate to a government-approved, commercial cloud environment of their choice, such as Amazon Web Service (AWS), Microsoft Azure, Google Cloud or the Oracle Cloud etc.

The contract was awarded for services and solutions valued at up to $950 million to help accelerate agencies’ migration to the cloud. The ceiling — or maximum allowable amount — was to be spread over a five-year period. The contracted budget would be applied only on a task-by-task basis, each having been described and priced in a special ordering guide based on successful outcome, regardless of the number of hours of labor. The ordering guide and pricing also includes security and other software solutions from third-party vendors.

“REAN Cloud has not been made aware of the basis for the DoD’s recently stated intention to reduce the contract ceiling to $65 million. However, it is clear that many DoD agencies wish to procure these services, said Puli. “Based on the threat of legal action and protest by the old guard, the only winners in this delay are those large companies that stand to lose money if DoD proceeds with innovation. In the meantime, the cost of maintaining antiquated government infrastructure has not subsided.”

“We are honored to be performing work for the U.S. military,” added Puli. “We look forward to continuing productive discussions with entities across DoD who still plan to migrate their IT infrastructure.”

About REAN Cloud
REAN Cloud is a global Cloud Systems Integrator (CSI), Managed Service Provider (MSP), Premier Consulting Partner in the Amazon Web Services (AWS) Partner Network (APN), and a Silver Microsoft Azure Partner.

REAN Cloud offers managed and professional services and patent-pending solutions for hyperscale integrated infrastructure (IaaS) and platform (PaaS) service providers and is one of few MSPs capable of supporting the entire cloud services lifecycle. Backed by extensive security DNA, deep compliance expertise and broad big data and analytics experience, REAN Cloud specializes in helping enterprise customers operating in highly regulated environments – Financial Services, Healthcare/Life Sciences, Education and the Public Sector – maximize their cloud investments by automating and accelerating key processes so they can fully leverage the benefits of the cloud. The REAN Cloud team has worked alongside global organizations including the American Heart Association, USTRANSCOM, Alexion Pharmaceuticals, Ditech Mortgage, Ellucian, Globus Genomics, Palo Alto Networks, Philips, PierianDx, SAP, Symantec, Teradata and Veritas. REAN Cloud is a registered trademark of REAN Cloud LLC.