thenextweb.com: https://thenextweb.com/news/pentagon-dell-microsoft-97bn-software-deal

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Subject: P000197
Source: GDELT news · original
Published: Thursday, May 28, 2026

Pentagon gives Dell a $9.7bn contract to consolidate Microsoft licences across the military Skip to content Toggle Navigation News Events TNW Conference June 19 & 20, 2025 All events Newsletters Partner with us Jobs Contact News Error 404: Page Not Found Error 404: Page Not Found Error 404: Page Not Found Latest Deep tech Sustainability Ecosystems Data and security Fintech and ecommerce Future of work Conference media hub More Startups and technology Investors and funding Government and policy Corporates and innovation Podcast Microsoft Pentagon gives Dell a $9.7bn contract to consolidate Microsoft licences across the military May 28, 2026 - 7:04 am Image by: Raimond Spekking The five-year deal consolidates scattered Microsoft 365 and cloud subscriptions for the Defense Department, intelli

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Pentagon gives Dell a $9.7bn contract to consolidate Microsoft licences across the military Skip to content Toggle Navigation News Events TNW Conference June 19 & 20, 2025 All events Newsletters Partner with us Jobs Contact News Error 404: Page Not Found Error 404: Page Not Found Error 404: Page Not Found Latest Deep tech Sustainability Ecosystems Data and security Fintech and ecommerce Future of work Conference media hub More Startups and technology Investors and funding Government and policy Corporates and innovation Podcast Microsoft Pentagon gives Dell a $9.7bn contract to consolidate Microsoft licences across the military May 28, 2026 - 7:04 am Image by: Raimond Spekking The five-year deal consolidates scattered Microsoft 365 and cloud subscriptions for the Defense Department, intelligence community and Coast Guard. Dell, not Microsoft, is the prime contractor. The US Department of Defense has awarded Dell a five-year, roughly $9.7bn contract to consolidate Microsoft software licensing across the entire US military, the intelligence community and the Coast Guard, according to a Reuters report on Wednesday. The deal is formally titled the Microsoft Department of War Enterprise Software Agreement II Core Enterprise Technology Agreement; Dell Federal Systems is the prime contractor, with Microsoft as the underlying software vendor. The contract itself, however, is between the Pentagon and Dell Federal Systems, the company’s government-focused unit. TNW City Coworking space - Where your best work happens A workspace designed for growth, collaboration, and endless networking opportunities in the heart of tech. Book a tour now Dell will resell Microsoft 365 subscriptions, advanced cloud capabilities and on-premises licensing to the relevant military and intelligence buyers under a single consolidated framework, replacing the patchwork of separately negotiated contracts that have accumulated across the services over the past decade. The Pentagon’s stated rationale is cost discipline. Officials say the consolidated vehicle will save roughly $422m a year by eliminating the duplicative licensing spending that had quietly ballooned across years of fragmented procurement. The $9.7bn is therefore not fresh spending so much as redirection of existing IT budgets from individual services and agencies into a single enterprise-wide buying arrangement. The Air Force, the Army, the Navy, the Marines, the Space Force, the intelligence agencies and the Coast Guard will all draw on the same contract for Microsoft software, on terms negotiated centrally rather than by each service’s own procurement team. The Dell-as-prime structure is itself worth noting. The contract’s value sits with Dell’s federal-systems P&L; Microsoft takes the underlying software-licence revenue at the rates negotiated through the agreement. Dell’s position is closer to that of a managed-services prime than a pure reseller, in that the company will be responsible for the integration, the supp

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