Oracle is cutting the cost of its database software and cloud-computing service for the federal government, making it the latest tech giant to offer the Trump administration a significant discount on its services.

The company is offering government agencies a 75% discount on its license-based software, including databases and analytics, as well as a “substantial” discount on its cloud service through the end of November, the General Services Administration said.

Oracle declined to specify how much of a discount it is giving the government on its cloud service. In software, customers can pay up front for a license that covers an extended period or purchase a subscription with recurring payments.

The GSA said the agreement with Oracle—the latest in a series of deals it has signed with large tech companies—is the first of its kind that provides the entire government with a discount on cloud infrastructure. The agency, which oversees procurement for the federal government, said it is in negotiations with other cloud providers to potentially make similar deals.

Cloud infrastructure is the technology used for fundamentals such as data storage, compute and networking, and is considered the backbone of modern IT systems.

In May, the GSA said Salesforce cut the price that it charges the government for use of its messaging-app Slack by 90% through the end of November. An earlier deal with Google was focused on discounting the tech giant’s software, not its cloud infrastructure. Adobe and the search company Elastic have struck similar agreements to offer their software at lower cost.

“Through procurement consolidation, we’re aiming to bring the leverage of the whole, commanding purchasing power of the federal wallet to these [technology providers] to get the best discounts for the taxpayers,” Federal Acquisition Service Commissioner Josh Gruenbaum said in an interview.

The GSA said it intends to achieve those savings by negotiating with tech companies directly, rather than going through third parties. Longer-term discounts with tech providers are expected soon, it added.

The effort is part of the Trump administration’s continued focus on extracting savings from federal contractors—from consulting firms to tech companies. President Trump has issued executive orders aimed at consolidating and streamlining federal procurement.

Though Elon Musk has stepped away from the Department of Government Efficiency, administration officials have said that broader effort to reduce waste continues.

Like prior administrations, Trump’s has said it is focused on modernizing the federal government through technology. Achieving that goal hasn’t been easy—the government still runs on many legacy information-technology systems like mainframe computers.

The deal with Oracle includes providing the federal government with access to its AI services, and special assistance moving IT systems onto the cloud.

“The Trump administration is focused on ensuring that we are delivering the most cutting-edge technology to optimize and pull forward federal government systems into the modern era,” Gruenbaum said. “Breaking down silos and enhancing interoperability to provide maximum transparency is where a lot of waste, fraud and cost takeout is going to come from.”

Oracle is part of a wave of Silicon Valley companies working to get closer to the Trump administration in defense and other areas.

Best known for its database software, Oracle has recently increased the scope of its work with the government. That includes the launch of a new program last month that aims to help smaller vendors sell tech to the Defense Department.

In 2022, Oracle was part of a group of cloud providers including Amazon, Google and Microsoft, that were awarded a major cloud services contract that offers “commercial pricing, or better” to the Defense Department. The GSA said the Pentagon will have the option to purchase discounted cloud services through its latest agreement with Oracle as well.

In January, Oracle co-founder Larry Ellison joined Trump in a White House ceremony announcing Stargate. That initiative includes a set of data centers that Oracle and global tech investor SoftBank Group are building for AI developer OpenAI.

Five years ago, Oracle won the bidding for the U.S. operations of the popular video-sharing app TikTok. Trump last month gave the app another reprieve from a national security ban, and has previously said he was open to an arrangement that transferred TikTok operations to Oracle.

The company’s deal with the GSA could help increase adoption of its cloud platform throughout the government, making the agreement a strategic move as it battles other tech giants over federal IT dollars.

Oracle is still fighting for market share against its rivals, including Amazon Web Services and Microsoft Azure, which dominate the cloud market. But there are signs that the company is gaining some ground. In June, it forecast its total cloud growth rate, which accounts for both applications and infrastructure, will rise 40% this fiscal year, compared with 24% in the prior one.

“We remain steadfast in our commitment to the U.S. government and are thrilled to work with the GSA to help every department and agency modernize their technology and gain the benefits of Oracle Cloud and AI,” Oracle CEO Safra Catz said.