Amazon Web Services(AWS) has signed an OneGov agreement with the U.S. government to offer up to $1 billion in discounts on cloud services, modernization efforts, and training programs through 2028, the General Services Administration said on Thursday. The move is the latest in a series of initiatives by major tech firms to strengthen ties with federal agencies.
The agreement offers this amount “in direct incentive credits” across federal civilian agencies through certain key features such as Credits, Modernization Credits, Training Credits, and Direct Partnership Model.
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Under this, agencies can tap into a range of benefits aimed at cutting costs and boosting efficiency. This includes credits for core AWS cloud services to lower infrastructure and operational expenses, dedicated modernization credits to upgrade systems without stretching budgets, and training credits to help staff build the skills needed for effective cloud adoption. The deal also establishes a direct partnership model, making it easier for agencies to work with AWS, speed up procurement, and streamline their move to the cloud.
According to the General Services Administration, the deal is set to accelerate the government’s shift to cloud-based systems and encourage wider use of artificial intelligence solutions.
“AWS’s partnership with GSA demonstrates a shared public-private commitment to enhancing America’s AI leadership,” the agency said in a release.
Hailing the agreement, Amazon’s cloud boss, Matt Garman, stated, this is a “significant milestone in the large-scale digital transformation of government services.”
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As part of the OneGov deal, federal agencies will not only receive significant credits for cloud use but also hands-on support from AWS specialists. This agreement urges agencies to phase out old, on-site systems, modernize their IT infrastructure, and adopt advanced tools more effectively. It also removes unnecessary middlemen, letting agencies work directly with AWS or its approved partners. This streamlines the buying process, makes it more transparent, and ensures better value for taxpayers.
Just a day before the AWS announcement, OpenAI made headlines by promising to offer federal agencies access to ChatGPT for just $1 per user, aiming to make AI-powered tools far more affordable for government work. This comes on the heels of Oracle’s move last month, when it agreed to significantly cut prices on its database software and cloud services for federal use.
These moves show that big tech companies are stepping up efforts to give U.S. government agencies easier, more affordable access to cutting-edge technology and cloud services.