Catenaa, Friday, July 11, 2025- Google will heavily discount cloud computing services for the US government, the Financial Times reported on Friday, in a deal that could be finalised within weeks.
The report said that the deal is part of President Donald Trump’s efforts to implement sweeping measures to minimize federal spending.
The Wall Street Journal reported last week that Oracle 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.
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 Azure and Amazon Web Services are expected to follow soon.
“Every single one of those companies is bought in; they understand the mission,” the senior official told the newspaper. “We will get there with all four players.”
In April, Google agreed to offer a 71% discount till September 30 to US federal agencies for its business apps package that could generate up to $2 billion in cost savings if there is government-wide adoption.
The agency’s cost-saving effort, spearheaded by acting administrator Stephen Ehikian and Federal Acquisition Service commissioner Josh Gruenbaum, follows a series of executive orders signed by Trump that mandate the government to save money in federal procurement.
In the past few months, the GSA has reached deals with Adobe and Salesforce. The latter company cut the price it charged the government to use the messaging service Slack by 90% until the end of November.
Big Tech leaders, including Meta’s Mark Zuckerberg and Google’s Sundar Pichai, have courted Trump, appearing prominently at his inauguration and ending corporate diversity programmes.
