Microsoft gives U.S. government a free year of services
Microsoft's deal with the U.S. General Services Administration includes $20 million in support services and aims to save taxpayers $3.1 billion in the first year through cloud and AI service discounts.
- On Tuesday, the GSA announced a deal with Microsoft Corporation projected to deliver more than $6 billion in value over three years, including a one-year no-cost Microsoft 365 Copilot licence for eligible G5 plan users.
- GSA's OneGov initiative centralises federal purchasing to lower prices, with Josh Gruenbaum, Federal Acquisition Service Commissioner, urging agencies to leverage it to accelerate AI adoption.
- Discounted pricing covers Microsoft 365, Azure cloud services, Dynamics 365 and Microsoft Sentinel, Microsoft holds FedRAMP High authorizations and Department of Defense provisionally approved Copilot with full FedRAMP High expected soon, plus Microsoft's $20 million support commitment for agency training.
- The deal could save taxpayers $3.1 billion in its first year, with federal agencies required to buy through the U.S. General Services Administration and opt in through next year; Nicholas Chaillan warned, `Pricing this low is not about serving agencies it's about forcing dependence on a single vendor, hiding future costs, and squeezing out fair competition`.
- Other big-tech deals show OpenAI and Anthropic offered one-year access for $1, Google priced Gemini for Government at $0.47, while most OneGov contracts expire in 2026 and AWS extends to 2028, leaving pricing uncertain.
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14 Articles
New Microsoft Deal to Save Government and Taxpayers $3 Billion in First Year
The General Services Administration (GSA) announced on Sept. 2 a deal with Microsoft designed to save the government and taxpayers billions. The tech giant will offer significant discounts to the GSA across its suite of cloud services, including Microsoft 365, Copilot, Azure Cloud Services, Dynamics 365, plus cybersecurity and monitoring tools. The new agreement is expected to save about $3.1 billion in just the first year. Utilizing the new One…
Microsoft Secures US Government Cloud Service Deal, Promises $6 Billion In Savings Over 3 Years: Report - Adobe (NASDAQ:ADBE), Amazon.com (NASDAQ:AMZN)
Microsoft Corp. (NASDAQ:MSFT) has agreed to provide the U.S. General Services Administration with potential savings of $3.1 billion over a year on cloud services used by government agencies Microsoft Offers $6 Billion In Savings On Cloud, Office, AI tools Microsoft announced that the savings, totaling over $6 billion over three years, will apply to its Office productivity subscriptions, Azure cloud services, Dynamics 365 business applications, a…
Microsoft to offer Copilot for free to some government customers
Microsoft will offer a host of its cloud services at a discounted price to the federal government, the General Services Administration announced Tuesday, including its artificial intelligence assistant Copilot at no cost to some agencies. The OneGov deal makes Microsoft the latest technology firm to leverage steep discounts on its cloud products to expand adoption within the federal government. It comes on the heels of GSA’s deals with industry…
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