The Israeli government has selected Amazon Web Services (AWS) and Google for a $ 1 billion project to provide cloud services to the Israeli government and military.

Amazon and Google beat Microsoft, Oracle, and IBM to tender for a four-phase project known as Nimbus. They will create local cloud sites in Israel with an initial investment of 4 billion shekels ($ 1.2 billion). These sites will store information within Israel's borders in accordance with strict security rules, Reuters reports.

The four phases of the project include the acquisition and creation of cloud infrastructure, government policy formation, integration and migration, and the control and optimization of cloud activities.

The ministry said Nimbus is a multi-year flagship project designed to provide an end-to-end solution for delivering cloud services to government, defense, and other groups in the economy.

Another bidding process is underway to review the third part of the project, which will select dozens of local vendors to assist in migrating government systems to the cloud and developing systems in the cloud.