Microsoft Signs $617 Million Deal With The Defense Department

Posted Jan 5, 2013

Microsoft Corporation has signed a $617 million enterprise license agreement as part of a three year deal with the Department of Defense last month.  The Defense department will get the lowest prices ever for Microsoft’s services and software as part of a blanket purchase agreement.

This deal is considered the most comprehensive licensing agreement Microsoft ever struck with the Department of Defense, which is the company’s largest customer.  The purchase covers around 75% of all Department of Defense personnel.  Microsoft worked with Insight Enterprises Inc. to work out the deal.

This contract was awarded by the Army contracting command, which includes the Army, Air Force, and Defense Information Systems Agency (DISA).  In the past, military groups have made separate deals with Microsoft.  For example, the Navy made a multi-year and $700 million enterprise licensing agreement with Microsoft this past July.

The military will save hundreds of millions in this deal.  The Air Force will save around $50 million and the Army will save $70 million.  The Air Force, Army, and DISA will gain access to Windows 8, Microsoft Office 2013, and SharePoint 2013.