Pentagon awards Oracle nearly $7 billion deal in major software consolidation push

Washington: The U.S. Department of Defense on Thursday awarded Oracle a nearly $7 billion contract to consolidate the Pentagon’s on-premises software licenses into a single agreement.

The Enterprise Software Agreement, negotiated by the Department of the Navy, covers the entire Pentagon, the U.S. Coast Guard, and the intelligence community.

The deal runs for five years, with an option for another five years, taking the potential value to up to 10 years. It covers Oracle’s on-premises compute usage across the department.

Pentagon technology officials said the move is part of a broader push to cut costs by ending fragmented purchasing and moving multiple agency licenses under one contract.

Oracle founder Larry Ellison has a close relationship with U.S. President Donald Trump.

The agreement marks one of the largest software consolidation efforts by the Pentagon to date, as the Defense Department looks to streamline operations and reduce licensing overhead across its agencies.