CIOTech Outlook Team | Friday, 08 August 2025, 03:17 IST
The US General Services Administration (GSA) announced that Amazon Web Services (AWS) has agreed to provide up to $1 billion in savings for US government agencies through 2028. The deal focuses on accelerating cloud adoption, modernizing IT systems, and providing training to support large-scale digital transformation and AI innovation across federal agencies.
The agreement offers up to $1 billion in direct incentive credits for federal civilian agencies, including savings on core AWS cloud services, modernization efforts, and training programs. AWS CEO Matt Garman stated, "This landmark agreement marks a significant milestone in the large-scale digital transformation of government services." The initiative aims to reduce federal IT costs, enhance service agility, and maintain US leadership in AI.
AWS will provide training resources and expert support to help agencies transition to the cloud, leveraging its experience with over 11,000 government organizations worldwide.
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As noted in a March government report, the federal government currently exceeds 100 billion per year in IT management, acquisition, and updates making the need of modernization a very important one. AWS has won billions of contracts to effect such transitions.
The GSA emphasized that the deal aims "to reduce the cost of federal IT expenditures, save taxpayer dollars, drive innovation and agility in new government services, and secure America's continued leadership in AI."
This multi-cloud initiative replaced the Joint Enterprise Defense Infrastructure (JEDI), a $10 billion contract awarded to Microsoft in 2019, which Amazon contested, alleging improper influence by former President Trump.
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