Microsoft is gifting the US Government $6 billion worth of Office and 365 software savings

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Microsoft offers the US Government “steep discounts”

A building at the Microsoft Headquarters campus in Redmond, Washington (2014).
(Image credit: Stephen Brashear/Getty Images)
  • GSA OneGov scheme lands the US Government huge Microsoft savings
  • The White House could save $3.1 billion in year one alone
  • Microsoft 365, Copilot and more are all on the cards

Microsoft has signed a $6 billion OneGov agreement with the General Services Administration (GSA) to give the US Government access to heavy discounts across its software.

$6 billion in savings across three years will kick off with an estimated $3.1 billion in savings during year one, with the White House securing discounts across Microsoft 365 (G3 and G5), Microsoft 365 Copilot, Azure Cloud Services, Dynamics 365, Microsoft Sentinel, Azure Monitoring, Entra ID Governance and further cybersecurity tools.

CVP for US Public Sector Industries Chris Barry announced the discounts, designed to benefit the American people through huge productivity and efficiency gains.

Microsoft gives the US Government more “steep discounts”

“With this new agreement with the U.S. General Services Administration, including a no-cost Microsoft 365 Copilot offer, we will help federal agencies use AI and digital technologies to improve citizen services, strengthen security, and save taxpayers more than $3 billion in the first year alone,” Microsoft CEO Satya Nadella said.

Microsoft described its deal as a five-pillar strategy: using AI to boost productivity; upping automation with AI agents; accelerating US cloud modernization; streamlining government operations; and enhancing cybersecurity.

Redmond has given federal agencies the month of September to opt in to any or all of its offerings, with discounted pricing set to last up to three years.

Microsoft isn’t the only company offering huge discounts for US federal agencies. Google also recently set a 71% price reduction on its Google Workspace packages, with a price cap of $0.47 on AI tools under the Gemini for Government portfolio.

Both deals align with Trump’s AI Action Plan, which aims to reduce regulatory barriers for AI adoption while simultaneously boosting US semiconductor manufacturing to keep up with increased demand.

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Craig Hale
Craig Hale

With several years’ experience freelancing in tech and automotive circles, Craig’s specific interests lie in technology that is designed to better our lives, including AI and ML, productivity aids, and smart fitness. He is also passionate about cars and the decarbonisation of personal transportation. As an avid bargain-hunter, you can be sure that any deal Craig finds is top value!

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