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Pentagon Awards Microsoft US$9.7 Billion Deal to Consolidate Software Licences and Cut Costs

Washington, 28 May 2026 – The Pentagon has awarded Microsoft a five-year agreement worth US$9.69 billion as part of a broader effort to consolidate software licences across the US military, intelligence community and US Coast Guard, while reducing duplicative technology spending.

The agreement, known as the Core Enterprise Technology Agreement, brings together Microsoft and other enterprise software licences that had previously been spread across separate military services and agencies. The move is designed to give the Department of Defense greater purchasing power, simplify procurement and end years of fragmented licensing arrangements.

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  • Steven is a writer focused on science and technology, with a keen eye on artificial intelligence, emerging software trends, and the innovations shaping our digital future.

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