The Pentagon said on July 23 that it awarded Oracle a contract worth nearly US$7 billion over 10 years.

The agreement covers on-premises software and related services across the US military, intelligence community, and Coast Guard.

The agreement combines Oracle software, services, and licensing contracts into a single Enterprise Software Agreement, rather than representing a new US$7 billion funding obligation.

It was negotiated by the Department of the Navy and includes a five-year base period and a five-year option period.

The Department of Defense said the structure should save taxpayers at least US$441 million by improving how it buys on-premises Oracle software.

The award follows a US$9.7 billion Pentagon-wide Microsoft software licensing agreement announced in May, as the department pushes to consolidate information technology purchasing.

Oracle shares rose about 3% after the announcement, though the stock is still down 38% this year.

Oracle said in June that its software revenue fell 2%, while cloud revenue rose 47%.

🔗 Source: CNBC

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