- Oracle will offer the US government 75% off certain software packages
- It will also offer “substantial” cloud service discounts
- The company has close ties with the government
Oracle is reportedly offering the US federal government a huge 75% discount on license-based software and further “substantial” discounts on cloud services until November.
The news, reported by Wall Street Journal, follows several weeks of discounts by tech giants trying to win big government bids, in response to cost-cutting efforts driving by the Musk-founded Department of Government Efficiency.
However, this marks the first deal to offer a government-wide discount on cloud infrastructure, including data storage, computing and networking, according to the report.
Oracle discounts to the US government
As part of the cost-cutting initiative, the General Services Administration aims to use government-wide purchasing power to negotiate better tech deals, removing siloes and cutting out middlemen to drive the biggest savings.
Salesforce has already offered the US government a staggering 90% discount on Slack, while Google and Adobe also form part of a growing list of tech companies dropping prices.
Besides reducing costs, the US government is also undergoing a pretty big transformation to modernize outdated IT systems.
With the US government already working closely with Oracle, the 75% software discount and further cloud discounts could secure a large chunk of revenue for the Texas-based tech giant. It recently launched a new program to help smaller vendors sell to the Defense Department, and is also a major partner for OpenAI’s Project Stargate which aims to expand AI infrastructure across the US.
Oracle CEO Safra Catz explained: “We remain steadfast in our commitment to the US government and are thrilled to work with the GSA to help every department and agency modernize their technology and gain the benefits of Oracle Cloud and AI.”
Federal Acquisition Service Commissioner Josh Gruenbaum welcomed the discounts, adding that transparency around tech acquisition could tackle “waste, fraud and cost takeout.”
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