ORCL · News · 20260723N

Customer Win — Department of War

ORACLE CORP · 2026-07-23 · Importance 71 · Surprise 60 · In source text

Oracle won a U.S. Department of Defense Enterprise Software Initiative agreement with a term of up to 10 years and a maximum value of approximately $6.99 billion. The contract has a base value of $3.31 billion for the first five years and consolidates previously fragmented Oracle software purchases across the Defense Department. Coverage states that the arrangement includes the military branches, Coast Guard, and intelligence community, with perpetual and subscription-based licenses. The government estimates the consolidation could save taxpayers at least $441 million and accelerate procurement of Oracle commercial products and services, including cloud and AI technology.

Key facts

• Oracle has been awarded a 10-year IDIQ contract under the U.S. Department of War Enterprise Software Initiative with a base value of $3.31 billion for the first five years and a total value of $6.99 billion if option years are exercised. source
• The Pentagon announced a nearly $7 billion, up-to-10-year agreement with Oracle to consolidate the department's on-premises software licenses into a single contract. source

Impact estimates