Alphabet Inc.‘s (NASDAQ:GOOGL) (NASDAQ:GOOG) Google division will heavily discount cloud computing services for the U.S. government as the Trump administration pressures technology giants to slash prices on lucrative federal contracts worth more than $20 billion annually.
What Happened: The agreement follows Oracle Corp.‘s (NYSE:ORCL) precedent-setting deal that included 75% discounts on some software contracts and substantial reductions on cloud computing services. A senior General Services Administration official told the Financial Times that Google’s cloud contract is likely “to land in a similar spot,” with finalization expected within weeks.
