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Defence / Oracle / Pentagon

Oracle signs $7bn deal under Pentagon's long-term contract strategy

The US cloud company won a $7 billion contract for services over the next ten years.

Noah Bovenizer
By  Noah Bovenizer
Updated / Published 2 min read
Oracle signs $7bn deal under Pentagon's long-term contract strategy
Image credit: US Department of War/Army Sgt. Kammen Taylor

Oracle is forming a tighter relationship with the Pentagon after receiving a contract worth up to $6.99 billion to supply its systems over the next ten years, following similar multi-billion-dollar deals with Dell and Salesforce.

Oracle will provide IT consultation and software services for the Department of War’s (née Defence) on-premise infrastructure under an “indefinite delivery/indefinite quantity” (IDIQ) contract, consolidating individual procurements.

Government, Defence and Intelligence EVP Kim Lynch said the deal: “creates a more streamlined path for DoW organizations to procure Oracle technologies, helping reduce acquisition complexity and accelerate mission outcomes.”

See also: NATO's C2 centre chief on AI and lessons from Ukraine

Split into two halves, the contract includes an initial $3.311 billion deal over five years, and an optional five-year extension that would see its cumulative value reach $6.99 billion.

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  • Noah Bovenizer

    Noah Bovenizer

    Noah Bovenizer is a senior reporter with The Stack. He previously covered the transportation sector for Global Data. He has a first class degree in journalism and has also worked as a newsreader for Gaydio.

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