Pentagon awards Microsoft $9.7 billion deal in bid to cut costs, end license sprawl

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The ⁠cost-cutting effort   hands ⁠Microsoft a guaranteed enterprise-wide foothold crossed  the U.S. equipped  forces [File]

The ⁠cost-cutting effort hands ⁠Microsoft a guaranteed enterprise-wide foothold crossed the U.S. equipped forces [File] | Photo Credit: REUTERS

The Pentagon ​on Wednesday announced a five-year, $9.69 ‌billion statement to consolidate Microsoft ​and different endeavor ⁠software licenses scattered crossed the subject services, the quality community, and ‌the U.S. Coast Guard into a ‌single declaration vehicle, officials ‌said.

The ⁠cost-cutting effort hands ⁠Microsoft a guaranteed enterprise-wide foothold crossed the U.S. equipped forces portion squeezing ​out duplicative ‌spending that officials said had softly ballooned crossed years of fragmented, go-it-alone procurement.

The ‌deal, called the Core ​Enterprise Technology Agreement, is not caller spending ⁠because baskets of Pentagon bundle contracts came up for ‌renewal simultaneously.

The funds travel from existing budgets already being utilized to acquisition Microsoft 365 subscriptions — covering email, Word, ‌Excel, PowerPoint and related tools — on ​with unreality subscriptions and on-premises licensing, into ⁠one spot wherever the afloat ⁠purchasing value of the section tin beryllium ‌used to thrust down costs.

Published - May 28, 2026 11:35 americium IST

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