Google is preparing to offer significant discounts on its cloud computing services to United States government agencies, according to a report by the Financial Times.
The agreement, which could be finalised by parent Alphabet Inc (NASDAQ:GOOG) in the coming weeks, comes as the government seeks to curb spending.
A senior official at the General Services Administration indicated that Google’s deal is likely to match recent offers by rivals, including Oracle, which last week announced a 75% reduction on software and notable cuts on its cloud services for federal clients.
Similar discounts from Microsoft Azure and Amazon Web Services are expected to follow.
In April, Google agreed to provide US federal agencies with a 71% discount on its suite of business applications until the end of September, a move that could result in substantial cost savings if widely adopted.