"migrate the entire IT infrastructure of America's military to a single cloud provider"
It’s migrating specific functions to AWS. Many of which are either with expensive legacy providers (including IBM and Oracle) or already in AWS’s GovCloud.
The final cloud solution is likely to consist of an office/email cloud provider (who knows who that could be...) to consolidate that part of the portfolio and a back office/middleware cloud provider (AWS), consolidation of the existing 300 data centres to ~1 per state plus specialist DCs for certain functions. Google also has a presence, although I believe their work is limited to the NSA as they haven’t met the required GovCloud requirements yet and their staff are not completely comfortable with the idea of working closely with the DoD. The “single provider” doesn’t really exist outside of Oracles claims.
The hope is to stabilise DoD IT spend at < US$20bn per annum as legacy providers are “taking the piss” and have repeatedly assisted the DoD with cost saving initiatives over the last 20 years that have resulted in on-going budget increases...
Oracle will lose eventually, but any wins along the way may delay inconvenient announcements to the market around significant capital write offs and revenue shortfalls due to changing “market conditions”. It’s possible that pork barrel manufacturers may suffer similar issues, although they maybe able to make up for this with larger deals with cloud providers...