Oracle Offers 75% Discount on Software, Cloud Services to Federal Agencies

Oracle has joined the ranks of other tech giants by offering significant discounts on its software and cloud services to federal agencies. The company has agreed to provide a 75% discount on its authorized software and substantial discounts on its cloud computing platform, according to the U.S. General Services Administration (GSA). This move is part of a broader strategy by the Trump administration to modernize federal technology and control costs. The GSA, which oversees federal procurement, described this agreement as the first of its kind to reduce cloud infrastructure costs across the entire government system. The cloud infrastructure is a critical component of modern IT systems, and the GSA is currently in discussions with other cloud service providers for similar agreements.

Earlier this year, Salesforce reduced the price of its Slack communication software for government use by 90%, and companies like Google, Adobe, and Elastic have also introduced software product discounts. These actions reflect the administration's dual strategy of promoting federal technology modernization and cost control. The White House has prioritized streamlining procurement processes and upgrading outdated IT systems, many of which still rely on obsolete technologies like mainframes.

Oracle's agreement includes permissions for artificial intelligence (AI) services and technical support for cloud migrations. The company is expanding its federal business portfolio and recently launched a program to help small tech companies connect with the Department of Defense. In 2022, Oracle, along with Amazon, Google, and Microsoft, secured a major cloud services contract from the Pentagon, leveraging its commercial pricing strategy to win the bid. This new agreement will also allow the Department of Defense to benefit from Oracle's cloud service discounts.

The founder of Oracle has recently strengthened ties with the government, including attending a White House event in early 2023 to promote a data center plan supporting AI development. In the competitive cloud services market, where Oracle faces stiff competition from Amazon AWS and Microsoft Azure, this government collaboration is expected to boost the adoption of Oracle's cloud platform. The company's cloud business is projected to grow by 40% this fiscal year, indicating potential breakthroughs in this highly competitive field.