The GSA announced a 75 percent discount agreement with Oracle on license-based technology. While it eliminates data egress fees and offers parity with commercial pricing, experts suggest such discounts are often deceptive. Oracle has a history of locking customers into agreements where reduced usage can lead to increased prices. In 2023, it was noted that Oracle and Microsoft obtain significant government revenue through non-competitive purchases. The GSA aims to support federal departments with migration services and modernization.
In 2023, analysis by IT procurement consultant Michael Garland found that Oracle and Microsoft get at least 25 percent and 30 percent of their respective government revenue through purchase processes that are not competitive, collectively benefiting by $10-15 billion annually.
The GSA said the OneGov agreement with Oracle would offer federal departments white-glove migration services and support credits, enabling seamless digital modernization.
However, experts have pointed out that heavy discounts are commonly offered to Oracle customers, and a 75 percent discount might not be as good as it sounds.
The agreement eliminates data egress fees and provides pricing parity with commercial offerings, a statement said.
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