Department of War Awards $9.7 Billion Microsoft Agreement to Modernize Military Technology

By Amr Gohar

WASHINGTON DC – The Department of War announced a $9.7 billion enterprise software agreement with Dell Federal Systems to provide Microsoft technologies across the U.S. military, a move officials say will strengthen digital infrastructure and improve operational readiness for the Joint Force.

According to the Department of War, the five-year agreement, known as the Microsoft Department of War Enterprise Software Agreement II Core Enterprise Technology Agreement (CETA), will provide enterprise-wide access to Microsoft 365, cloud services, secure communications, collaboration tools, and productivity software across military services and defense agencies.

The contract was awarded to Dell Federal Systems of Round Rock, Texas, and is designed to accelerate modernization efforts while creating a more connected and secure military network.

Department of War Chief Information Officer Kirsten A. Davies described the agreement as a critical investment in maintaining a technological advantage on future battlefields.

“To dominate the modern battlefield, our warfighters must be armed with the most secure solutions the commercial sector can produce,” Davies said in a statement.

Officials said the agreement will support secure communications and data sharing across the military while helping implement Combined Joint All-Domain Command and Control (CJADC2), a key initiative intended to connect military operations across land, air, sea, space, and cyberspace.

The Department said the enterprise-wide purchasing approach is expected to reduce procurement delays, improve interoperability among military branches, and lower costs through standardized software and cloud services.

Barry Tanner, performing the duties of Chief Information Officer for the Department of the Navy, called the contract a “game changer” that will help sailors and Marines access secure cloud infrastructure needed for modern military operations.

Officials also said the agreement will support the deployment of artificial intelligence capabilities, advanced data analytics, and cloud-based technologies while maintaining operational continuity in classified and low-bandwidth environments.

The Department of War described the initiative as a key component of the National Defense Strategy and said the investment is intended to ensure the United States maintains a secure, modern, and resilient digital infrastructure capable of responding to emerging global threats.