● Covered by 1 source · 1 reportMedium impact1 neutral
Pentagon awards Oracle 10-year, $7 billion software contract for on-premises use
Key points
- Pentagon awarded Oracle a 10-year software contract worth up to $7 billion.
- The contract covers on-premises software for military, intelligence, and Coast Guard.
- The deal includes perpetual and subscription licenses, maintenance, and consulting.
- The Department of Defense expects to save $441 million through this procurement.
Pentagon Secures Oracle Software Deal
The Pentagon announced a 10-year contract with Oracle, potentially worth up to $7 billion. This agreement will provide Oracle software for on-premises data centers used by various branches of the U.S. military, the U.S. intelligence community, and the Coast Guard. The contract's initial five-year period includes both perpetual and subscription-based software licenses, maintenance services, and consulting.
Financial Impact and Savings
This contract represents a notable win for Oracle, whose stock saw a 3% increase in extended trading following the announcement. The Department of Defense's Chief Information Officer, Kirsten Davies, stated that the new procurement method for Oracle capabilities is projected to save taxpayers at least $441 million.
Context for Oracle's Business
Oracle has faced investor concerns this year, with its shares down 38% due to worries that AI advancements could impact software incumbents. The company is also investing heavily in building AI data centers, incurring tens of billions of dollars in debt. While Oracle's quarterly software revenue declined 2% year-over-year in June, its cloud revenue increased by 47% as it supplies AI computing power to clients like OpenAI.
✨ This summary was generated by AI from the outlets' reporting listed below. It is not independently verified and may contain errors — check the original sources. How BrevFeed works →
The daily brief
One email each morning: the day's tech stories, clustered across outlets and summarized. No account needed.
One email a day. Unsubscribe in one click, any time.
Today's brief
Spend a few minutes, get the whole day. Every topic's top stories in one hands-free rundown — listen, watch, or read the transcript.
▶ Play today's brief
New every morning, and the back catalogue is archived by date.
Reporting from
The Pentagon signed a 10-year contract with Oracle, valued at up to $7 billion, for on-premises software licenses, maintenance, and consulting across military branches and intelligence agencies. This agreement provides Oracle with a significant government revenue stream amid investor concerns about its growth prospects in the AI era.