The U.S. General Services Administration (GSA) announced a new government-wide agreement with Microsoft ($MSFT) to reduce cloud service costs and accelerate artificial intelligence adoption across federal agencies. The partnership, part of GSA’s OneGov Strategy, is projected to save up to $3.1 billion in the first year.
- Microsoft will provide discounted pricing on Azure Cloud, Microsoft 365, Dynamics 365, Copilot, and cybersecurity tools.
- Microsoft 365 Copilot will be offered at no cost for up to 12 months for Microsoft G5 customers.
- Agencies can access additional discounts on Microsoft Sentinel, Azure Monitoring, and Entra ID Governance through September 2026.
- Dynamics 365 will be available at no cost for up to one year for eligible workloads.
- The partnership includes workshops on implementation and optimization to support adoption.
- The agreement supports the Trump Administration’s AI Action Plan and aims to improve government efficiency through AI integration.
- GSA has also secured recent discount deals with Google and Amazon Web Services for cloud services.
Relevant Companies
- MSFT – Direct beneficiary of the agreement, expanding its footprint in U.S. government cloud and AI services.
- GOOGL – Google Cloud is also participating in similar GSA contracts, intensifying competition with Microsoft.
- AMZN – Amazon Web Services secured its own GSA discounts, competing with Microsoft for federal AI and cloud adoption.
Editor’s Note: This is a developing story. This article may be updated as more details become available.
