The NIS 4 billion project is expected to create thousands of new jobs around the country, with many in Jerusalem, where government offices will have to revamp their data systems for the new cloud architecture, migrating them from the existing mainframe computer systems.
Now that the selection of Google and Amazon has been approved, the companies will begin preparations to set up the cloud infrastructure. The two tech giants are committed to spending at least 20% of the value of the contract on Israeli products and services.
The Nimbus Project is intended to provide a comprehensive and in-depth solution for the provision of cloud services to the government, the defense system and other large economic institutions. Google and Amazon will be required to provide cloud services from an Israeli region, which will ensure the government functional continuity, assurance of sovereignty and privacy of information in accordance with Israeli law. It will house huge amounts of sensitive data, improving efficiency and reducing bureaucracy.
The establishment of the Israeli cloud region will contribute to the development of the local economy in light of the many investments required for its establishment and operation, and will help develop the Israeli ecosystem by encouraging the establishment of local companies working on cloud technologies and exporting cloud services to neighboring countries, the Finance Ministry said.
The project includes four phases: 1) purchase and construction of the cloud infrastructure, 2) formulation of the government policy for migration to the cloud, 3) integration and migration to the cloud, and 4) implementation and optimization of cloud activity. Google and Amazon will split responsibilities in the first phase for different parts of the setup process.
Somekh Chaikin-KPMG has already been chosen to provide services for phase two. A tender for local suppliers has already been issued for phase three, while the tender for the fourth phase will be made in the future.
"This project is the product of a vision, high professional capabilities, commitment and investment, and with an emphasis on cross-government cooperation led by the Nimbus team – an integrative inter-ministerial team that has brought the vision to fruition," said Government Procurement Administration director Gal Amir. "We are now embarking on a long process of partnership with the winning suppliers."
Google and Amazon beat out global cloud giants Microsoft, Oracle and IBM for the tender. Amazon's AWS is by far the world’s largest cloud company, with an estimated 47% of the entire cloud market in 2019. The two companies will provide their services in Israel for no less than seven years, according to the terms of the contract.