Microsoft: The Secure Discount King
September 10, 2025
Just a dinobaby sharing observations. No AI involved. My apologies to those who rely on it for their wisdom, knowledge, and insights.
Let’s assume that this story in The Register is dead accurate. Let’s forget that Google slapped the $0.47 smart software price tag on its Gemini smart software. Now let’s look at the interesting information in “Microsoft Rewarded for Security Failures with Another US Government Contract.” Snappy title. But check out the sub-title for the article: “Free Copilot for Any Agency Who Actually Wants It.”
I did not know that a US government agency was human signaled by the “who.” But let’s push forward.
The article states:
The General Services Administration (GSA) announced its new deal with Microsoft on Tuesday, describing it as a “strategic partnership” that could save the federal government as much as $3.1 billion over the next year. The GSA didn’t mention specific discount terms, but it said that services, including Microsoft 365, Azure cloud services, Dynamics 365, Entra ID Governance, and Microsoft Sentinel, will be cheaper than ever for feds. That, and Microsoft’s next-gen Clippy, also known as Copilot, is free to access for any agency with a G5 contract as part of the new deal, too. That free price undercuts Google’s previously cheapest-in-show deal to inject Gemini into government agencies for just $0.47 for a year.
Will anyone formulate the hypothesis that Microsoft and Google are providing deep discounts to get government deals and the every-popular scope changes, engineering services, and specialized consulting fees?
I would not.
I quite like comparing Microsoft’s increasingly difficult to explain OpenAI, acqui-hire, and home-grown smart software as Clippy. I think that the more apt comparison is the outstanding Microsoft Bob solution to interface complexity.
The article explains that Oracle landed contracts with a discount, then Google, and now Microsoft. What about the smaller firms? Yeah, there are standard procurement guidelines for those outfits. Follow the rules and stop suggesting that giant companies are discounting there way into the US government.
What happens if these solutions hallucinate, do not deliver what an Inspector General, an Independent Verification & Validation team, or the General Accounting Office expects? Here’s the answer:
With the exception of AWS, all the other OneGov deals that have been announced so far have a very short shelf life, with most expirations at the end of 2026. Critics of the OneGov program have raised concerns that OneGov deals have set government agencies up for a new era of vendor lock-in not seen since the early cloud days, where one-year discounts leave agencies dependent on services that could suddenly become considerably more expensive by the end of next year.
The write up quotes one smaller outfit’s senior manager’s concern about low prices. But the deals are done, and the work on the 2026-2027 statements of work has begun, folks. Small outfits often lack the luxury of staff dedicated to extending a service provider’s engagement into a year or two renewal target.
The write up concludes by bringing up ancient history like those pop archaeologists on YouTube who explain that ancient technology created urns with handles. The write up says:
It was mere days ago that we reported on the Pentagon’s decision to formally bar Microsoft from using China-based engineers to support sensitive cloud services deployed by the Defense Department, a practice Defense Secretary Pete Hegseth called “mind-blowing” in a statement last week. Then there was last year’s episodes that allowed Chinese and Russian cyber spies to break into Exchange accounts used by high-level federal officials and steal a whole bunch of emails and other information. That incident, and plenty more before it, led former senior White House cyber policy director AJ Grotto to conclude that Microsoft was an honest-to-goodness national security threat. None of that has mattered much, as the feds seem content to continue paying Microsoft for its services, despite wagging their finger at Redmond for “avoidable errors.”
Ancient history or aliens? I don’t know. But Microsoft does deals, and it is tough to resist “free”.
Stephen E Arnold, September 10, 2025
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