Forgot your password?
typodupeerror
Oracle Government Software The Almighty Buck

Oracle Signs 10-Year Software Contract With Pentagon Worth Up To $7 Billion (cnbc.com) 83

Oracle has signed a 10-year Pentagon contract worth up to $7 billion to provide on-premises software, licenses, maintenance, and consulting for branches of the military. CNBC reports: The contract covers the use of Oracle software in on-premises data centers for branches of the military, the U.S. intelligence community and the Coast Guard, according to a statement. The Central Intelligence Agency was Oracle's first customer. A five-year base period for the contract includes perpetual and subscription-based software licenses, maintenance and consulting, according to one description.

Kirsten Davies, the Department of Defense's chief information officer, said in the release that the agency is saving at least $441 million for taxpayers "by fundamentally improving how we procure on-premises Oracle capabilities."

Oracle Signs 10-Year Software Contract With Pentagon Worth Up To $7 Billion

Comments Filter:
  • No way! (Score:2, Funny)

    by Anonymous Coward

    Seriously, you're shitting me. This same Larry Ellison? https://people.com/thmb/UgtSvE... [people.com]

    • Larry was a Clinton guy in the 1990s. He became a Trump guy since 2016

      • Re: (Score:3, Informative)

        by gtall ( 79522 )

        Larry doesn't care who is sitting on his face. It isn't as though he has any principles.

      • Larry was a Clinton guy in the 1990s. He became a Trump guy since 2016

        Trump was a Clinton guy prior to his 2016 run. They were all running in the same circles.

        • From Wikipedia:

          > Trump registered as a Republican in Queens in 1969 and in Manhattan in 1987;[13][105] a member of the Independence Party, the New York state affiliate of the Reform Party, in 1999; a Democrat in 2001; a Republican in 2009; unaffiliated in 2011; and a Republican in 2012.[106]

          So during Clinton's presidency he was an opponent of him. Indeed, he made an attempt to be Bush Sr's running mate in 1992. He was only a Democrat for about 8 years, in part because he had been rejected by the pre-Pal

      • So was Trump. He was a democrat back then.

        • No, he was a Democrat from 2001-2009. He was a failed Republican until the mid-1990s, and a failed Reform Party member until 2001. (That is, both times he tried to run for office, VP under Bush Sr, and President under the Reform Party, and was rejected in both cases.)

          It IS true that he moved in the same circles, and was friendly with the Clintons after Clinton was out of office, but he clearly never voted for any Democrat for office with the possible exception (unknown) of John Kerry.

        • Re:No way! (Score:4, Insightful)

          by cmdr_klarg ( 629569 ) on Friday July 24, 2026 @11:48AM (#66254952)

          The orange guy was never Republican or Democrat. He is a sociopathic opportunist. He will claim to be whatever is most likely to let him get on with his grifting.

  • by rsilvergun ( 571051 ) on Thursday July 23, 2026 @07:11PM (#66254090)
    They could just hire people to do it and then the fruits of that labor could be available to everyone as open source. As an added bonus we wouldn't be constantly paying for the profitability of private companies for no particularly good reason. And we wouldn't be creating billionaires that are going to undermine our democracy.

    But something something socialism so here we are... All of us stuck with shit software that constantly spies on us
    • They could just hire people to do it and then the fruits of that labor could be available to everyone as open source. As an added bonus we wouldn't be constantly paying for the profitability of private companies for no particularly good reason. And we wouldn't be creating billionaires that are going to undermine our democracy. But something something socialism so here we are... All of us stuck with shit software that constantly spies on us

      First of all, didn't Oracle get it's start as a CIA product? The company is a shit show today, but you can't dispute that they were a leader in the 80s and even the 90s. Ask anyone who has served or even just worked in gov. They've dealt with poorly-maintained software written for a specific purpose.

      The gov COULD write software in theory, but historically, they do more poorly than when they hire consultants to do so. The ideal is private industry with heavy accountability. Those private businesses

    • > They could just hire people to do it and then the fruits of that labor could be available to

      Intentional snip at the end because I want to give an example where it's not open source. For example, in the 1970s the CIA did something similar to what you describe and commissioned a database from some consultants. The product was for a database, which the CIA code-named "Oracle".

      Can you guess who was one of those consultants and what they're doing today with the code?

    • Have you *seen* government-written software? It's dated, clunky, and bureaucratic.

      Sure, they *could* build their own, but *should* they? I don't know about that.

  • by ClickOnThis ( 137803 ) on Thursday July 23, 2026 @07:12PM (#66254092) Journal

    Kirsten Davies, the Department of Defense's chief information officer, said in the release that the agency is saving at least $441 million for taxpayers "by fundamentally improving how we procure on-premises Oracle capabilities."

    So, it's $441M saved, by improvements in procurement. Not sure what that means. Does that mean Oracle gave them a $441M discount, or they found a way to reduce $441M in wasted money on the procurement process? Or something else?

    In any case, this sounds like puffery.

    • Without a site license, one would expect each Service and each Program to negotiate a separate contract with Oracle (or any other software vendor.) Enterprise site licensing is pretty common, both in government circles and in industry, with savings over a collection of individual purchases. So there's nothing unusual about this.

      • by ClickOnThis ( 137803 ) on Thursday July 23, 2026 @08:38PM (#66254164) Journal

        If that's true, then what is unusual is that it wasn't done a long time ago.

        • DoD has been doing site licensing for Oracle for at least 25 years. On my project, we found a site license that covered our selection & use of Oracle back around 2001/2002. So NO NEWS HERE.

          • So, Oracle site licenses for DoD have existed for 25 years. Then we still don't have an answer to my question: Where are the savings coming from?

            • The savings come from the rate Oracle (or any other vendor) charges for a single Enterprise license, compared to the rate Oracle would charge each customer/project separately, summed over the set of projects. Is that clear enough?

              (Frankly, that's a surprisingly low number for the savings.)

              • So, are you saying that 25 years ago, various branches and departments of the DoD had numerous site licenses, and the current administration switched to a single enterprise license?

                Then my comment above stands: "If that's true, then what is unusual is that it wasn't done a long time ago."

                And maybe they did as you say, but there's no indication in TFA or TFS as to exactly what the administration (and Oracle?) did to lower the cost of the licenses, or their procurement. So, still asking: "Where are the saving

    • by Anonymous Coward

      However that works, it's a $7bn deal *now*, but by the time it's half delivered it'll be a $50bn deal, and will only need another $100bn to actually finish it. It's the Oracle Way. I'm just glad that'll assign a lot of Oracle time/money/energy away from the other fuck ups they have going on around the world.

      Why anyone does business with Oracle escapes me. In this case though, it's probably because of certain 'facilitation payments' to certain people.

    • I'm not interested in what savings, I'm interesting in what software? What software does Oracle have that is worth actually giving them ANY amount of money for today?

  • by Anonymous Coward on Thursday July 23, 2026 @07:17PM (#66254102)

    Expect a lot of long term contracts to be signed between the US Government and those who contributed $$ to Trump. Lock it in while he is still in office.

    • Congress needs to approve multi-year contracts. I think this might qualify.

      Remember, Congress (not POTUS) controls the purse. At least, it's supposed to work that way.

      • by ClickOnThis ( 137803 ) on Thursday July 23, 2026 @11:16PM (#66254276) Journal

        Congress needs to approve multi-year contracts. I think this might qualify.

        Well, it turns out it doesn't. The DoD can negotiate contracts like this, as long as the funding is available from previously-appropriated budgets.

      • Those companies will flip on a dime. In the past, they'd own the GOP, but knew how to bribe the relevant people on the Dem side. However, since the last 10 years, when MAGA turned on them, making it clear that the GOP can no longer be taken for granted, their new strategy is tactical - compete for the patronage of whoever's in power

      • Remember, Congress (not POTUS) controls the purse. At least, it's supposed to work that way.

        Yeah, but in practice it does not. The Executive does whatever they decide to do, and no one can stop them. The courts say that they lack the authority -it is Congress job to do. Congressional leaders lack the will to stand up to the executive, and even if they tried the members of Congress would have to agree on any action -and they cannot agree with one another.

        An uncaring Court, a divided Congress, and unitary Executive power.

  • by phantomfive ( 622387 ) on Thursday July 23, 2026 @07:20PM (#66254106) Journal
    No doubt they will get high quality products and services as a result. Oracle provides nothing other.
  • by yanestra ( 526590 ) on Thursday July 23, 2026 @07:58PM (#66254142) Journal
    It's a bailout and I bet Donnie T. will line up his pockets with the "referral bonus".
    • by evanh ( 627108 )

      Not just a bail-out, it's Donnieâ(TM)s quid-pro-quo of course. Nothing like day-light corruption to cap things off.

  • Larry Ellison can at least afford another island in Hawai with this deal.

  • Great news! (Score:3, Insightful)

    by jenningsthecat ( 1525947 ) on Thursday July 23, 2026 @08:36PM (#66254162)

    Great for America's enemies, that is. If even a quarter of what I've heard about Oracle's offerings being over-budget, never-on-time, never-on-spec shitshows is actually true, then this will weaken the country's defense capabilities.

    Then again, it's no longer the DoD, it's now the DoW - so maybe defense is no longer important? /sarc

    • by evanh ( 627108 )

      The real contracts will still happen. This one is just a reward/handout from The Don.

    • If even a quarter of what I've heard about Oracle's offerings being over-budget, never-on-time, never-on-spec shitshows is actually true,

      In general this is NOT for Oracle services...this is site wide (for all of DOW) for enterprise database and other software licensing....

      There are contractors for each branch and project that use and maintain databases and most of them are Oracle....lots of legacy systems and always something new on the horizon....but Oracle generally is NOT doing any work.

  • to Terrible Administration

    News at Eleven!

  • ...with a couple more features you probably don't need, missing some cool stuff you'd rather have.

    And hideously expensive and complicated to administer, instead of free.

    • by gweihir ( 88907 )

      Nobody sane use Oracle as a database in new projects anyways. But the Oracle database is not the only crappy product Oracle sells.

  • What's the going bribery rate for a $7 billion contract?

    No matter what Ellison comes out personally richer while the rest of us pay the bill.

  • We no longer have a working government. Any attempts to complain will label you an enemy of the state.
  • Where is (Score:4, Funny)

    by eneville ( 745111 ) on Friday July 24, 2026 @02:20AM (#66254362) Homepage

    Where is DOGE that one time you need 'em?

  • That balances out the $7 billion they now owe the state of Wisconsin for their data centers impact on the electrical grid.
  • Not $7B Award; IDIQ (Score:5, Informative)

    by Koreantoast ( 527520 ) on Friday July 24, 2026 @09:52AM (#66254778)
    A few things for people who aren't familiar with government contracting. The awarded contract is what's called an indefinite-delivery/indefinite-quantity (IDIQ) contract. What this means is that Oracle hasn't actually been awarded any money - rather, they have effectively pre-negotiated prices and terms and conditions for services with the government up to a certain dollar amount. This allows the government to in the future, go and quickly order services from Oracle on an as-need basis. The government is under no obligation to spend the entire award amount, and in fact, most large IDIQ's like this rarely get close to their ceiling. The IDIQ doesn't even guarantee that a budget has been set aside for this spend. That's why contractors sometime refer to IDIQ's as hunting licenses: you have the opportunity to get money, but there's no guarantee you'll get anything. It's a milestone for Oracle, but they haven't actually got any money yet - they're still going to have to fight for task order by task order.

    I'll also add that they only set the ceiling at $3.3B. The government in theory has the option to increase the ceiling up to $7B, but again, that's at their discretion not Oracle's.
  • In a crowded field of evil companies they are still making a name for themselves.
  • Up to $7 bn, the same way I get up to 100 Mbps. It's always one-tenth of the advertised figure.

If it wasn't for Newton, we wouldn't have to eat bruised apples.

Working...