Google is preparing to heavily discount its cloud computing services for the United States government, according to a report by the Financial Times on Friday. The deal, which could be finalised within weeks, aligns with President Donald Trump’s ongoing efforts to cut federal spending through strategic technology partnerships.
How Much Will Google’s Cloud Discount Save the Government?
While specific figures have not been disclosed, Google’s cloud services contract is expected to offer discounts similar to those provided by Oracle. The Wall Street Journal recently reported that Oracle is offering federal agencies a 75% discount on license-based software and substantial savings on its cloud services through the end of November.
A senior official from the General Services Administration (GSA) told the Financial Times that Google’s deal is expected “to land in a similar spot,” with significant savings anticipated.
“Every single of those companies is totally bought in; they understand the mission,” the GSA official said. “We will get there with all four players.”
Microsoft Azure and AWS Expected to Follow
According to the same report, Microsoft Azure and Amazon Web Services (AWS) are also expected to provide equivalent discounts to U.S. government agencies shortly. This coordinated effort would mark a large-scale cloud service cost reduction across all major cloud providers.
Google’s Previous Federal Discount Initiatives
In April, Google agreed to offer a 71% discount on its business apps package for U.S. federal agencies until September 30. That program, aimed at cutting government-wide software expenses, could generate up to $2 billion in cost savings if fully adopted across departments.
Google and GSA Yet to Confirm
As of now, Google and the General Services Administration have not publicly commented on the Financial Times report. Reuters also noted it could not independently verify the claims as of Friday.
Why These Cloud Discounts Matter
These steep cloud service discounts come amid broader efforts by the Trump administration to minimise federal IT spending while modernising government infrastructure. By leveraging competitive offers from leading tech companies, the U.S. government aims to both cut costs and improve operational efficiency.
