Oracle provides significant discounts on software and cloud services to the U.S. government, which increases federal tech modernization.

Oracle has also introduced lower price rates on its database software and cloud-computing services to the U.S. federal government in which it will be sold with up to 75 percent off on the license-based software in reference to the General Services Administration (GSA). The step puts Oracle in line with other technology giants like Salesforce and Adobe, which have also entered into similar arrangements with the governments in the recent past.

According to the GSA, the deal represents the first government-wide price break on cloud infrastructure, and all agencies can access the database tools, analytics and cloud services offered by Oracle at special pricing through Nov.

This major pricing program is within the context of large-scale federal IT cost reduction and the modernization of legacy systems under the Trump administration. The collaboration also encompasses the Oracle AI services and migration services which have the potential to stimulate the use of cloud among agencies.

The increased presence of Oracle in federal technology modernization as well as involvement in one of the largest cloud contracts with the Defense Department back in 2022, makes this company a rising challenger of Amazon Web Services and Microsoft Azure.

CEO Safra Catz reinforced the belief that Oracle is dedicated to assisting the U.S. government to realize digital transformation in the organization by expanding cloud and AI service offerings.