Microsoft Secures $6B Government Cloud Contract, Gifts Free AI for a Year
Microsoft has recently unveiled a monumental agreement with the U.S. General Services Administration (GSA). This deal is expected to save taxpayers over $6 billion across three years, with an impressive $3.1 billion in savings projected for the first year alone.
The agreement provides millions of federal workers with complimentary access to Microsoft 365 Copilot for up to 12 months. This initiative marks a significant drive to hasten AI adoption across government agencies.
The comprehensive package includes substantial discounts on:
- Azure cloud services
- Microsoft 365
- Dynamics 365
- Cybersecurity tools like Microsoft Sentinel
“With this new agreement with the U.S. General Services Administration, we aim to assist federal agencies in utilizing AI and digital technologies to enhance citizen services, fortify security, and save taxpayers more than $3 billion in the first year alone,” stated Microsoft CEO Satya Nadella.
This agreement forms part of the GSA’s OneGov strategy, which seeks to consolidate government spending and secure superior pricing. Federal agencies have the option to opt into these offers through September 2026, with discounted pricing available for up to 36 months on specific products.
Furthermore, Microsoft will also provide an additional $20 million in support services for implementation and training.
This deal strategically positions Microsoft against competitors like Google and Amazon. Both tech giants have also secured significant government contracts this year, as they fiercely compete for the lucrative federal cloud market.
Source: CNBC