Microsoft Offers $6 Billion in Savings on Cloud, Office, and AI Tools to US Agencies

Microsoft has agreed to provide the US General Services Administration with potential savings of $3.1 billion over a year on cloud services used by government agencies, totaling over $6 billion over three years. The savings will apply to Office productivity subscriptions, Azure cloud services, Dynamics 365 business applications, and Sentinel cybersecurity software. Agencies will also get one year of complimentary access to the Copilot AI assistant for millions of Microsoft 365 G5 users. The discounted rates are readily available and must be purchased through the GSA until September 2026.

Microsoft Corp. (MSFT) has agreed to provide the U.S. General Services Administration (GSA) with potential savings of $3.1 billion over a year on cloud services used by government agencies, totaling over $6 billion over three years. The savings will apply to Office productivity subscriptions, Azure cloud services, Dynamics 365 business applications, and Sentinel cybersecurity software [1].

In addition to these savings, agencies will also receive one year of complimentary access to the Copilot AI assistant for millions of Microsoft 365 G5 users. The discounted rates are readily available and must be purchased through the GSA until September 2026 [2].

This move by Microsoft comes at a time when other tech giants are also making significant inroads into the U.S. government sector. The GSA has been pursuing a spending consolidation initiative called OneGov, aimed at reducing costs. Companies including Adobe (ADBE), Amazon.com (AMZN), Google (GOOG, GOOGL), and Salesforce (CRM) have already offered discounts [3].

The agreement aligns with Microsoft's long-standing commitment to collaborating with the U.S. government. Satya Nadella, CEO of Microsoft, highlighted the company’s enduring commitment to collaborating with the U.S. government, noting, “For over four decades, Microsoft has collaborated with the U.S. government to serve the American people. Through our new agreement with the GSA, including the provision of free Microsoft 365 Copilot services, we will help federal agencies leverage AI and digital technologies to enhance public services, strengthen security, and save taxpayers over $30 billion in the first year alone” [3].

References:
[1] https://www.benzinga.com/markets/tech/25/09/47448654/microsoft-offers-6-billion-in-cloud-ai-office-savings-to-us-agencies-trumps-gsa-onegov-push-drives-free-copilot-access
[2] https://www.reuters.com/world/us/microsoft-discount-cloud-services-us-government-2025-09-02/
[3] https://news.ssbcrack.com/microsoft-partners-with-gsa-to-offer-60-billion-savings-on-cloud-services-for-government-agencies/