FILE-The Pentagon, heaquarters of the U.S. Department of Defense, is seen from the air on February 8, 2025, in Washington, D.C. (Photo by J. David Ake/Getty Images)
The Pentagon announced a five-year, $9.69 billion agreement to integrate Microsoft and other software licenses across military services, the intelligence community, and the U.S. Coast Guard into a single contract.
This deal is scheduled to begin on June 1, in a move that is expected to save the federal agency $422 million yearly, according to a release from the Department of War.
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This cost-cutting move grants Microsoft a stronghold across the U.S. armed forces while phasing out spending that officials tell Reuters surged for years.
Pentagon-Microsoft contract
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Reuters reported that the Core Enterprise Technology Agreement is not new spending since Pentagon software contracts were up for renewal concurrently.
The money is from budgets currently being utilized to buy Microsoft 365 subscriptions encompassing email, Microsoft Word, Excel, PowerPoint, and related technology tools as well as with cloud subscriptions and licensing, in one space where the purchasing weight of the federal agency can be used to lower costs.
The Source: Information for this story was provided by Reuters and The Department of War. This story was reported from Washington, D.C.