Dell wins a $9.7 billion Pentagon software deal after cozying to Trump
CNBC • • business
Key Points:
- The Department of Defense awarded Dell Federal Systems a five-year, $9.7 billion contract to provide Microsoft 365, advanced cloud subscriptions, and on-premises licensing for U.S. military software needs.
- The contract, named the Microsoft Department of War Enterprise Software Agreement II Core Enterprise Technology Agreement, aims to streamline and consolidate Microsoft software licensing across the Department of War, intelligence community, and U.S. Coast Guard.
- The agreement is expected to save the Pentagon approximately $422 million annually by reducing redundancies and consolidating IT budgets into a single procurement vehicle.
- Dell won the contract through a competitive evaluation process based on pricing and overall value compared to General Services Administration schedules.
- The deal follows a history of collaboration between Dell and Microsoft and highlights Dell's growing influence within government circles, including connections to former President Trump and his advisory councils.