Microsoft wins Pentagon's JEDI contract, and the cloud wars heat up

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Microsoft JEDI: The Empire Strikes Back

The Pentagon awarded its Joint Enterprise Defense Infrastructure, or JEDI, contract to Microsoft late last week.

The JEDI contract is worth up to $10 billion over 10 years, but just as valuable as the money is it's also worth bragging rights and street cred.

This was supposed to be Amazon's contract to lose. Amazon practically invented enterprise cloud computing 14 years ago with AWS. When the Pentagon put out the requirements for the contract a year and a half ago, some competitors cried foul that it was too tailored to Amazon.

So is this contract now a game changer in the cloud wars?

Jon Fortt breaks down the big deal with "Squawk Alley" co-anchor Morgan Brennan.

Fortt Knox is a weekly podcast from CNBC anchor Jon Fortt. Previous episodes of the program can be found here.