Microsoft Announces Free Microsoft 365 Copilot Services for the U.S. Government, Saving It Over $3 Billion in the First Year

Sept. 3 - The U.S. General Services Administration (GSA) has been pushing hard this year to negotiate deep discounts with technology vendors as part of its "OneGov" acquisition strategy. The strategy is designed to consolidate the purchasing power of federal agencies to drive down product prices.

Microsoft Announces Free Microsoft 365 Copilot Services for the U.S. Government, Saving It Over $3 Billion in the First Year

Recently, companies such as Google, OpenAI, Anthropic and others have announced that they will be providing theUS GovernmentSimilarly, OpenAI plans to make ChatGPT Enterprise available to all employees of the federal executive branch for only $1 per agency over the next year. OpenAI plans to make ChatGPT Enterprise available to all federal executive branch employees for just $1 per agency over the next year, while Anthropic will offer Claude Enterprise and Claude Government for the three branches of the U.S. government - the civilian federal executive branch, the legislative branch, and the judiciary - also priced at $1 per agency. 1 per organization.

Meanwhile, Google has launched Gemini for Government, which costs less than $0.50 per government agency for one year, and its Google Workspace Enterprise Plus package, which offers temporary discounts for federal agencies. Its Google Workspace Enterprise Plus package also offers temporary discounts to federal agencies of 71% over current Multiple Award Program pricing.

Today.MicrosoftA similar temporary discount program was also announced. The offer covers Microsoft 365,CopilotThe agreement is expected to provide the U.S. General Services Administration (GSA) with a total of $4.3 billion in savings over the first year (see note: Rs. 221.17 crore) in government spending. According to the U.S. General Services Administration, the partnership agreement is expected to save the government $3.1 billion in the first year (note: the current exchange rate is approximately RMB 22.117 billion).

For more than 40 years, Microsoft has worked with the U.S. government to serve the American people," said Satya Nadella, chairman and CEO of Microsoft. Through this new agreement with the U.S. General Services Administration - which includes Microsoft 365 Copilot at no additional cost - we will help federal agencies use artificial intelligence and digital technologies to improve the quality of citizen services, enhance safety and security, and provide a new way to improve the quality of service for citizens in the first year alone," said Satya Nadella, chairman and CEO of Microsoft. and security, saving taxpayers more than $3 billion in the first year alone."

In addition, Microsoft plans to offer Microsoft 365 Copilot free of charge for 12 months to Microsoft G5 customers. At the end of the year, the "Microsoft 365 + Copilot suite" for the U.S. government will be available at a heavily discounted price.

Federal agencies wishing to take advantage of this offer have until September 2026 to opt-in to any or all of these offers, and if they do, some products will be eligible for this new discounted pricing for up to 36 months.

Not only that, Microsoft will also invest an additional $20 million in support services to help government agencies implement the above preferential programs and get the most value from these services.

Microsoft expects these discounted services to bring a total estimated value of more than $6 billion (about 42.807 billion yuan at current exchange rates) to U.S. government agencies over the next three years.

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