Microsoft struck a governmentwide agreement with the U.S. General Services Administration to expand access to its AI and cloud tools, including up to 12 months of Microsoft 365 Copilot at no cost for millions of existing G5 users. The unified pricing plan is projected to save agencies $3 billion in the first year and as much as $6 billion over three years, with additional Azure discounts and waived data egress fees to spur cloud modernization. The package includes AI agents without per‑agent fees, security offerings such as Entra ID and Sentinel aligned to a Zero Trust model, and services already authorized at FedRAMP High; Copilot holds provisional DoD approval. Agencies can opt in through September 2026 with discounts for up to 36 months, and Microsoft is allocating $20 million in support services and cost‑optimization workshops to accelerate adoption.
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