Oracle grants deep cloud, software discounts to US government

Oracle will offer a 75% discount on its software licenses and significant cloud service concessions through November, aiming to help US federal agencies modernize legacy systems and lower operational expenses across departments

In a move aimed at bolstering its foothold in the public sector, Oracle has announced significant price reductions on its database software and cloud infrastructure offerings for US federal agencies. The initiative is part of a broader agreement with the General Services Administration (GSA), which oversees federal procurement, and marks the latest push by a major tech firm to deepen ties with the government.

Under the new agreement, Oracle will provide a 75% discount on license-based software products, including its widely used databases and analytics tools. Additionally, the company will offer substantial, though unspecified, discounts on its cloud services through the end of November. These concessions are designed to make Oracle’s offerings more attractive to a range of federal departments seeking to modernize outdated systems and reduce operational costs.

The GSA emphasized that this is the first cloud-focused agreement offering federal-wide discounts on infrastructure, setting a precedent for future deals. “Through procurement consolidation, we’re aiming to bring the full weight of federal purchasing power to secure better technology deals for taxpayers,” said Josh Gruenbaum, Commissioner of the Federal Acquisition Service, in a statement.

This initiative aligns with the federal government’s continued emphasis on digital transformation and cost efficiency. Oracle’s cloud services will now be more accessible to agencies looking to upgrade their IT infrastructure, including access to advanced tools like artificial intelligence and support for migrating legacy systems to modern cloud environments.

Oracle deepens federal tech ties

The deal comes as part of a wave of tech-sector collaboration with the federal government. Earlier this year, Salesforce agreed to a 90% discount on its messaging platform Slack, and companies like Google, Adobe, and Elastic have also struck software discount deals. However, Oracle’s agreement stands out by including infrastructure-level services—essential for core computing, networking, and data storage functions.

Oracle’s deeper engagement with the federal government follows its increasing interest in public sector projects. The company was part of the multi-vendor Joint Warfighting Cloud Capability (JWCC) contract in 2022, alongside Amazon Web Services, Microsoft, and Google, offering commercial or better pricing to the Defense Department.

The new GSA deal also supports ongoing efforts to modernize defense IT infrastructure. Oracle recently launched a program to help small vendors supply tech solutions to the Pentagon and is involved in Stargate, an AI-focused data center initiative backed by OpenAI and SoftBank.

While Oracle trails AWS and Microsoft Azure in overall cloud market share, this strategic agreement could boost its presence in the highly competitive government sector. CEO Safra Catz expressed enthusiasm about the partnership, stating, “We remain steadfast in our commitment to the US government and are thrilled to help agencies modernize and leverage Oracle Cloud and AI solutions.”

As the government pursues long-term digital transformation, Oracle’s latest discount strategy may offer the dual benefits of cost savings and accelerated modernization—while giving the company a stronger foothold in federal IT modernization efforts.