Oracle wins 10-year Pentagon software contract worth up to $7 billion
The U.S. Department of Defense has awarded Oracle a 10-year software contract valued at nearly $7 billion. The deal covers on-premises software licenses and maintenance for various military branches and intelligence agencies.
Why it matters
This contract is a significant financial win for Oracle and highlights the ongoing integration of major tech firms into U.S. defense infrastructure.
The Pentagon on Thursday announced a contract with Oracle worth almost $7 billion over a decade, a big win for the software maker, which has been punished by investors this year. The stock rose about 3% in extended trading.
The contract covers the use of Oracle software in on-premises data centers for branches of the military, the U.S. intelligence community and the Coast Guard, according to a statement. The Central Intelligence Agency was Oracle's first customer. A five-year base period for the contract includes perpetual and subscription-based software licenses, maintenance and consulting, according to one description .
Kirsten Davies, the Department of Defense's chief information officer, said in the release that the agency is saving at least $441 million for taxpayers "by fundamentally improving how we procure on-premises Oracle capabilities."
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