Microsoft Agrees to $6bn Cloud Discount for US government

Microsoft has agreed to provide the US government with up to $6 billion in discounts over the next three years. The discounts will apply to Azure cloud computing services, Microsoft 365, Copilot, Dynamics 365, and cybersecurity tools. The first year alone could see the government saving up to $3.1bn.

“GSA is proud to partner with technology companies, like Microsoft, to advance AI adoption across the federal government, a key priority of the Trump Administration,” said GSA deputy administrator Stephen Ehikian. “We urge our federal partners to leverage these agreements, providing government workers with transformative AI tools that streamline operations, cut costs, and enhance results.”

“For more than four decades, Microsoft has partnered with the US Government to serve the American people,” added Satya Nadella, chairman and CEO, Microsoft. “With this new agreement with the US General Services Administration, including a no-cost Microsoft 365 Copilot offer, we will help federal agencies use AI and digital technologies to improve citizen services, strengthen security, and save taxpayers more than $3 billion in the first year alone.”