SAP expands government partnership with OneGov deal

Software company SAP inked a new agreement with the General Services Administration to offer federal agencies access to its services at significantly discounted rates, deepening its longstanding partnership with the federal government. 

The GSA announced the OneGov deal Tuesday, stating that the agreement offers up to 80 percent discounts on SAP’s database, cloud, and analytics services. The agency estimated this will lead to $165 million in savings for federal agencies. 

Specifically, agencies will be able to access products related to SAP’s database and data management services, including HANA, ASE, IQ, SQL, Anywhere, Replication Server, and PowerDesigner, with an 80 percent discount. SAP’s cloud services, including SAP Business Technology Platform, SAP Analytics Cloud and HR Payroll, will be offered at a 35 percent discount, GSA said. 

Other benefits, including dedicated support and waived data egress fees, are included in the deal, according to GSA. 

GSA said the agreement is available for existing SAP customers for expansions, renewals or “modernization projects.” 

The deal makes SAP the latest major technology company to participate in GSA’s OneGov initiative, which aims to work directly with IT manufacturers to consolidate IT purchasing and accelerate modernization in federal agencies. 

Numerous leading technology companies — from longtime federal partners like Microsoft to newer companies like Anthropic — have signed OneGov deals, offering AI capabilities for less than $1 in some cases. 

“The OneGov model enables agencies to adopt modern capabilities more efficiently,” David Robinson, the president of SAP Cloud ERP and managing director of SAP’s U.S. Public Services, said in a release. “We look forward to working together to accelerate IT modernization by leveraging the AI-powered SAP Business Suite to eliminate inefficiencies, reduce operating costs, and empower agencies to move faster, operate smarter, and maintain a persistent state of innovation.”

Robinson emphasized the deal “strengthens” SAP’s nearly three-decade partnership with the federal government. 

Josh Gruenbaum, the commissioner of GSA’s Federal Acquisition Services, said the deal gives agencies new tools as they “transition away from legacy systems” and “accelerate technology modernization.” The Trump administration has made technology modernization a key priority for federal agencies, pushing for quicker adoption of emerging technologies in agency workflows.