ServiceNow becomes the latest software maker to offer US Government some hefty discounts

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US Government secures another big software discount

Donald Trump
Image credit: Whitehouse.gov (Image credit: Whitehouse.gov)
  • ServiceNow will offer 40-70% off software for the US Government
  • Its AI platform promises 30% better efficiency across workflows
  • The White House already uses ServiceNow tools

ServiceNow has joined the list of tech firms offering the US Government hefty discounts on its software to both support federal savings and land a big deal at the same time.

An announcement from the General Services Administration (GSA) noted workflow efficiency boosts of up to 30% were promised via the ServiceNow AI Platform, but the federal discounts are set to be even bigger.

The cloud computing company is offering up to 70% off upgrades to a new Information Technology Service Management (ITSM) Pro and Pro Plus Bundle, or up to 40% off upgrades to a standalone version of ITSM Pro.

GSA secure even more software discounts

GSA Acting Administrator Michael Rigas welcomed the discount, which aligns with the White House’s AI push: “The Trump Administration is committed to leveraging the power of AI to transform government operations and enhance citizen services, ensuring we operate with efficiency and agility, while leveraging innovative technology.”

ServiceNow has also promised to honor the discounts for three years, until September 2028, with standalone upgrade option available for one year.

The deal doesn’t serve as an effort to entice the US Government to migrate, though – ServiceNow AI products already handle more than 200 million government tasks annually.

Analysts also estimate 10% of ServiceNow’s revenue comes from the public sector – securing a bigger deal with the White House could boost growth here.

“Our AI platform and solutions will help every federal agency consolidate the past, strengthen security, and deliver better outcomes for the American people,” ServiceNow CEO Bill McDermott added.

Other short-term discounts under the OneGov centralized IT procurement scheme have secured the US Government billions in savings, including a recently announced multi-product deal from Microsoft.

Looking further ahead, it’s unclear what happens when the discount terms come to an end – be it renegotiation of discounts or a reversion to higher prices. Sceptics are also concerned that today’s huge discounts could lead to pricy vendor lock-in later on down the line.

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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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