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Oracle Cloud Cuts Costs and Propels Missions for Government Agencies

By Kim Lynch, Executive Vice President, Government Defense and Intelligence—Jul 14, 2025
General Services Administration

By now everyone understands Oracle is an industry leader in delivering high levels of performance, security, and efficiency for our customers’ most demanding workloads. Partnering with our customers to deliver solutions that scale across multiple gigawatts of power and hundreds of thousands of GPUs is an opportunity of a lifetime—not only for every company involved, but also for our country as we collectively work to help secure American leadership in AI. One of the reasons I’m proud to lead Oracle’s Federal business is this dual bottom line our leadership prioritizes. It is not enough to have the best technology, or the best cloud services—to truly win, we must also look for ways to enable our customers’ success. And when it comes to the U.S. government, that means we win when America wins. That’s why last week Oracle and the U.S. General Services Administration (GSA) announced a first-of-a-kind partnership to help agencies across the federal government modernize technology and deliver savings for American taxpayers.

The opportunity to support this Administration’s renewed focus on government efficiency is motivating because of the sheer number of ways Oracle can bring our decades of experience and range of solutions to help meet this moment. As I look across the federal government, I see customers who are working to apply best practices from the private sector to the daily operations of departments and agencies. Interestingly, one of the challenges we face is that across the federal government a considerable number of government systems run on older versions of Oracle’s technology. In part this is because we build our products to be effective for many years, and in part, because we do not force our customers to change their systems on our schedule. Of course, our federal customers can benefit from our latest technology, which is why we built our second-generation cloud to help ensure customers have a pathway to the future. Oracle’s AI enabling cloud infrastructure like Oracle Database 23ai, application suites with AI fully integrated, and partnerships with large language model and GPU providers allows our customers ready access to the most cutting edge AI capabilities.

Oracle has the depth and breadth of capabilities—from bare metal compute to AI technologies throughout Oracle’s cloud that power our applications and vertical industry solutions—helping ensure that we can deliver a finished product, not just a vehicle for endless customization by consultants. Oracle’s next generation, secure, AI-integrated cloud services are the obvious choice for mission critical workloads, and they are also the right choice for departments and agencies looking to efficiently manage human capital management, finance and other operations while spending far fewer taxpayer dollars.

Oracle and the GSA’s initiative is only the most recent example of both Oracle’s commitment to the U.S. government and the GSA’s tremendous work to advance technology, increase efficiency, and achieve cost savings for the government and taxpayers. GSA will continue to lead the way in technology innovation by helping federal agencies migrate from Oracle on-premises products and third-party databases to Oracle Cloud, ultimately saving significant costs. With this partnership, GSA itself will also work with Oracle to move their systems to our cloud.

We always look for creative ways to make it easier for federal agencies to move to modern, secure, AI-enabled cloud services that our most demanding commercial customers can rely on today. Our second-generation cloud offers better performance and built-in security which means we can deliver services out of the gate at rates on average 50 percent less for compute, 70 percent less for storage, and 80 percent less for networking. On top of our market-leading cloud services pricing advantage, GSA and Oracle negotiated a 75 percent discount (for six months) on our licensed-based technologies to help ensure even those federal missions that must run on-premises are able to benefit from our latest innovations and security enhancements.

We appreciate GSA’s leadership and innovation in technology transformation. GSA has a track record of groundbreaking technology programs. Its recognition of Oracle cloud’s unmatched speed, security, and scalability and its drive to ensure access to our cloud for all federal government departments and agencies will benefit countless agencies.

Immediate cost savings are only where we start. Our agreement adds white-glove migration services for modernizing workloads as they move to Oracle Cloud and support discounts. And this agreement cements a pro-competitive removal of data egress fees while moving government workloads among cloud service providers with FedRAMP Moderate, High or DOD IL4 and IL5 clouds—certifications that Oracle has long held for our government customers.

With AI fully integrated into Oracle’s offerings, the next generation of Oracle apps are purpose built to speed up workflows in finance, human capital management, and data management without the hallucinations and loss of data control that come with bolt-on AI solutions.

Oracle is looking forward to continuing our support of government agency missions. I am proud of Oracle’s long history of solving mission-critical challenges for our customers, and I am excited to deliver Oracle’s capabilities to federal customers today.