The agreement merges Oracle's product and licensing services into one contract, which the Defense Department estimates will result in at least $441 million in savings.

WASHINGTON, July 23 : The Pentagon announced on Thursday a nearly $7 billion, up-to-10-year agreement with Oracle to consolidate the department's on-premises software licenses…

Oracle will supply on-premises software to the U.S. Department of Defense.

The Enterprise Software Agreement, negotiated by the Department of the Navy, is between the Pentagon and Oracle for its on-premises compute usage.