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The U.S. Department of Defense has awarded Oracle an enterprise software agreement worth up to $7 billion over 10 years, as the Pentagon continues its effort to consolidate software procurement and reduce costs across the military and intelligence agencies.
The Enterprise Software Agreement, negotiated by the Department of the Navy, will consolidate the Pentagon's on-premises Oracle software licenses under a single contract, replacing fragmented purchasing across multiple military services and agencies.
The agreement has an initial term of five years, with an option to extend it for another five years. It covers the Department of Defense, the U.S. Coast Guard and the U.S. intelligence community.
"By fundamentally improving how we procure on-premises Oracle capabilities, we are driving at least $441 million in taxpayer savings while rapidly and effectively serving our warfighters," said Pentagon Chief Information Officer Kirsten Davies.
The Oracle deal follows a similar $9.69 billion enterprise agreement signed with Microsoft in May, which consolidated Microsoft and other enterprise software licenses previously managed through separate contracts across the military services, intelligence community and Coast Guard.
The two agreements are part of a broader strategy by the Pentagon to replace agency-specific software purchases with enterprise-wide contracts, with the aim of eliminating duplicate spending, simplifying software licensing and improving procurement efficiency.
The move reflects a growing trend among large public-sector organisations to centralise enterprise software procurement, enabling better pricing, streamlined licence management and greater visibility into software usage while reducing administrative complexity.
For Oracle, the agreement further strengthens its presence within the U.S. federal government, particularly in mission-critical enterprise infrastructure supporting defence and national security operations.
The Enterprise Software Agreement, negotiated by the Department of the Navy, will consolidate the Pentagon's on-premises Oracle software licenses under a single contract, replacing fragmented purchasing across multiple military services and agencies.
The agreement has an initial term of five years, with an option to extend it for another five years. It covers the Department of Defense, the U.S. Coast Guard and the U.S. intelligence community.
"By fundamentally improving how we procure on-premises Oracle capabilities, we are driving at least $441 million in taxpayer savings while rapidly and effectively serving our warfighters," said Pentagon Chief Information Officer Kirsten Davies.
The Oracle deal follows a similar $9.69 billion enterprise agreement signed with Microsoft in May, which consolidated Microsoft and other enterprise software licenses previously managed through separate contracts across the military services, intelligence community and Coast Guard.
The two agreements are part of a broader strategy by the Pentagon to replace agency-specific software purchases with enterprise-wide contracts, with the aim of eliminating duplicate spending, simplifying software licensing and improving procurement efficiency.
The move reflects a growing trend among large public-sector organisations to centralise enterprise software procurement, enabling better pricing, streamlined licence management and greater visibility into software usage while reducing administrative complexity.
For Oracle, the agreement further strengthens its presence within the U.S. federal government, particularly in mission-critical enterprise infrastructure supporting defence and national security operations.
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