Microsoft Cuts Annual Cloud Costs For Government By $3.1 Billion

Microsoft agreed to provide the U.S. General Services Administration $3.1 billion in potential annual savings on cloud services used by federal agencies, according to CNBC. Since Trump’s return to the White House in January, the GSA has pursued its OneGov strategy to cut costs, prompting Adobe, Amazon, Google, and Salesforce to offer discounts. Agencies must purchase through the GSA to access Microsoft’s discounted pricing through September 2026, with savings projected to exceed $6 billion over three years. The GSA manages about $110 billion of the federal government’s $450 billion spending and is moving to absorb NASA and NIH procurement under a Trump executive order. About $80 billion of federal spending goes to IT, with Microsoft’s annual U.S. government revenue estimated in the mid- to high-single-digit billions.