Google is preparing to offer steep discounts on its cloud computing services to U.S. federal agencies, with a deal potentially finalized within weeks, according to a report by the Financial Times citing a senior General Services Administration (GSA) official.
The move follows a similar offer by Oracle, which last week committed to slashing license-based software costs by 75% and offering substantial discounts on its cloud services through the end of November, as reported by The Wall Street Journal.
Google’s contract is expected to offer comparable discounts, and the GSA anticipates similar concessions soon from Microsoft’s Azure and Amazon Web Services (AWS). “Every single one of those companies is totally bought in, they understand the mission,” the GSA official told the Financial Times. “We will get there with all four players.”
Neither Google nor the GSA immediately responded to requests for comment.
In April, Google had already agreed to provide a 71% discount on its business apps suite for federal agencies through September 30 — a deal projected to save the government up to $2 billion if adopted across departments.
The coordinated discounting strategy by major tech firms signals increasing competition for federal contracts, as well as alignment with broader government goals to modernize IT infrastructure and reduce operational costs.
