Microsoft (MSFT) has entered a deal with the U.S. General Services Administration (GSA), offering federal agencies deep discounts on its cloud, AI, and cybersecurity tools. The agreement is expected to save taxpayers nearly $3.1 billion in the first year alone, with total savings likely to exceed $6 billion over the three years.
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It includes major price cuts on several of the tech giant’s products, such as Microsoft 365, Azure Cloud Services, Dynamics 365, and Microsoft Sentinel cybersecurity software.
Also, the company will provide free access to Microsoft Copilot, the company’s generative AI assistant, for all government employees. It must be noted that federal agencies can opt into this new pricing structure until September 2026.
Microsoft CEO Satya Nadella said that the deal “will help federal agencies use AI and digital technologies to improve citizen services, strengthen security, and save taxpayers more than $3 billion in the first year alone.”
Tech Giants Back OneGov Strategy
The move aligns with the Trump administration’s new OneGov strategy to secure better pricing from major tech companies.
Microsoft joins other tech giants like Google (GOOGL), Salesforce (CRM), Amazon (AMZN), OpenAI, and Anthropic, all of whom have recently announced similar discount programs for U.S. agencies.
Overall, this initiative reflects the government’s efforts to upgrade its IT infrastructure and use advanced tools such as artificial intelligence.
At the same time, the deal boosts MSFT’s reputation, locks in future contracts, and positions it as a key player in government tech.
Is MSFT Stock a Good Buy?
Turning to Wall Street, MSFT stock has a Strong Buy consensus rating based on 33 Buys and one Hold assigned in the last three months. At $624.08, the average Microsoft stock price target implies a 24.49% upside potential.
