By Daniel Miller
Publication Date: 2026-05-29 17:17:00
FILE-The Pentagon, heaquarters of the U.S. Department of Defense, is seen from the air on February 8, 2025, in Washington, D.C. (Photo by J. David Ake/Getty Images)
The Pentagon announced a five-year, $9.69 billion agreement to integrate Microsoft and other software licenses across military services, the intelligence community, and the U.S. Coast Guard into a single contract.
This deal is scheduled to begin on June 1, in a move that is expected to save the federal agency $422 million yearly, according to a release from the Department of War.
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This cost-cutting move grants Microsoft a stronghold across the U.S. armed forces while phasing out spending that officials tell Reuters surged for years.
Pentagon-Microsoft contract
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Reuters reported that the Core Enterprise Technology Agreement is not new spending since Pentagon software contracts were up for renewal concurrently.
The money…