U.S. Pentagon awards Oracle nearly $7 billion deal in latest software consolidation push

Oracle’s founder, billionaire ‌Larry Ellison, has a close relationship with U.S. President Donald Trump [File] | Photo Credit: REUTERS The Pentagon announced on Thursday a ​nearly $7 billion, up-to-10-year agreement with Oracle to ‌consolidate the department’s on-premises software licenses ​into a single contract, ⁠the latest move by the Pentagon’s technology chief to cut costs by eliminating fragmented ‌purchasing.The Enterprise Software Agreement, negotiated by the Department of the ‌Navy, is between the Pentagon ‌and ⁠Oracle for its on-premises compute ⁠usage.The agreement spans five years, with a further five-year option, and covers the entire Pentagon, ​along with ‌the U.S. Coast Guard and the intelligence community.“By fundamentally improving how we procure on-premises Oracle capabilities, we are ‌driving at least $441 million in taxpayer ​savings while rapidly and effectively serving our warfighters,” Pentagon Chief ⁠Information Officer Kirsten Davies said. The Oracle agreement builds on a similar effort ‌Davies’ office struck with Microsoft in May. That five-year, $9.69 billion deal consolidated Microsoft and other enterprise software licenses scattered across the military services, the intelligence community and the Coast ‌Guard into a single contract.The two ​deals mark a broader push under Davies to rein in years ⁠of duplicative software spending across the ⁠military by replacing piecemeal, service-by-service contracts with enterprise-wide agreements.Oracle’s founder, billionaire ‌Larry Ellison, has a close relationship with U.S. President Donald Trump. Published - July 24, 2026 10:00 am IST