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Pentagon awards Oracle nearly $7 billion deal in latest software consolidation push

The decade-long deal covers Oracle software in military, intelligence and Coast Guard data centers as the Pentagon seeks to cut costs by at least $441 million.

  • On Thursday, the Pentagon announced a nearly $7 billion, 10-year agreement with Oracle to consolidate on-premises software licenses across the military, Coast Guard, and intelligence community into a single contract.
  • Pentagon Chief Information Officer Kirsten Davies initiated the consolidation to eliminate fragmented purchasing, building on a similar enterprise-wide agreement the agency struck with Microsoft Services in May.
  • The agency expects to save at least $441 million, while Barry Tanner, performing the duties of Navy CIO, said the deal removes procurement stovepipes to support faster software delivery.
  • Oracle co-founder Larry Ellison, a longtime supporter of President Donald Trump, reportedly contributed $45 million to a nonprofit backing the 2024 campaign, deepening ties with the administration.
  • While Oracle shares are down 38% this year amid investor concerns that AI could hurt software incumbents, the company's cloud revenue climbed 47% as it supplies computing power to OpenAI.
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CNBC broke the news in Englewood Cliffs, United States on Thursday, July 23, 2026.
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