Oracle has signed a 10-year contract with the U.S. Department of Defense valued at up to $7 billion to provide on-premises software and related services, according to a Pentagon statement reported by multiple outlets. The agreement covers Oracle software deployed in service and military on-premises data centers, with scope extending beyond the Department of Defense to include the U.S. intelligence community and the Coast Guard, as described in the contract documentation. The contract includes software licenses, maintenance, and consulting, and it is structured with a five-year base period. During that base period, the deal encompasses both perpetual and subscription-based licensing options, along with support and services.
The Department of Defense’s chief information officer, Kirsten Davies, says the agency expects taxpayer savings of at least $441 million. Sources also note that the CIA was an early customer for Oracle, indicating prior government use of the company’s software before the broader Pentagon award.
