Google will provide the US government with significant savings on cloud computing services

US: In the midst of President Donald Trump’s attempts to enact comprehensive measures to reduce federal expenditure, the Financial Times reported on Friday that Google would significantly reduce cloud computing services for the US government in a deal that could be finalized within weeks.

Oracle (ORCL.N) will provide federal agencies a 75% discount on its license-based software and a “substantial” discount on its cloud service until the end of November, according to a Wall Street Journal article last week.

Citing a senior official at the General Services Administration, the Financial Times stated that Google’s cloud contract is likely “to land in a similar spot” and that comparable discounts from Amazon Web Services (AMZN.O) and Microsoft (MSFT.O) are anticipated to follow shortly.

The senior official told the publication, “Every single one of those companies is totally bought in; they understand the mission.” “We will get there with all four players.”
Reuters was unable to confirm the information right away.

Requests for comment from Reuters outside of usual business hours were not immediately answered by Google or the General Services Administration.

Google agreed in April to provide U.S. federal agencies a 71% discount on its business applications bundle until September 30. If the government as a whole adopts the program, the savings may reach $2 billion.