Google will heavily discount cloud computing services for the United States government, in a deal that could be finalised within weeks, the Financial Times reported on Friday, amid President Donald Trump’s efforts to implement sweeping measures to minimize federal spending.
The Wall Street Journal reported, opens new tab last week that Oracle (ORCL.N), opens new tab will offer federal agencies a 75% discount on its license-based software and a “substantial” discount on its cloud service through the end of November.
The Reuters Tariff Watch newsletter is your daily guide to the latest global trade and tariff news.
Google’s cloud contract is likely “to land in a similar spot”, the Financial Times said, citing a senior official at the General Services Administration, adding that equivalent discounts from Microsoft’s (MSFT.O), opens new tab Azure and Amazon Web Services (AMZN.O), opens new tab are expected to follow soon.
“Every single of those companies is totally bought in, they understand the mission,” the senior official told the newspaper. “We will get there with all four players.”
Reuters could not immediately verify the report.
Google and the General Services Administration did not immediately respond to Reuters’ requests for comment outside regular business hours.
Advertisement · Scroll to continueReport This Ad
Google agreed to offer a 71% discount till September 30 to U.S. federal agencies for its business apps package that could generate up to $2 billion in cost savings if there is government-wide adoption
Trump also said other nations without deals could expect duties of 15% to 20%.00:21