Oracle secures $7B contract to supply the Pentagon with vital software and services
Database giant Oracle Corp. has signed a new, multibillion-dollar deal with the Pentagon that will see it provide its software to branches of the U.S. military, Coast Guard and intelligence community over the next 10 years.
The deal, valued at almost $7 billion, includes a five-year base period for both perpetual and subscription-based software licenses, maintenance and consulting, Pentagon officials said.
Kirsten Davies, who serves as the Department of Defense’s chief information officer, said that her agency managed to negotiate a contract that will result in savings of at least $441 million for taxpayers by “fundamentally improving how we procure on-premises Oracle capabilities.”
Investors reacted positively to the deal. Oracle’s stock, which has come under pressure this year amid fears that artificial intelligence will disrupt traditional software vendors, gained more than 3% on news of the contract.
