SAP offers major discount to government customers through OneGov agreement

SAP will discount its software for government customers at rates of up to 80% over the next 18 months through the latest OneGov agreement with the General Services Administration.

Announced Tuesday by GSA, the discounts apply to SAP’s database, integration, analytics and cloud software and are available to existing SAP customers for renewals, expansions or modernization projects. Based on current government rates, GSA estimates the discounts could save federal agencies up to $165 million over the next 18 months, generating taxpayer savings while they look to modernize IT.

"The OneGov agreement with SAP gives federal agencies access to new tools as they accelerate technology modernization, transition away from legacy systems, and unlock significant taxpayer savings," FAS Commissioner Josh Gruenbaum said in a statement. “Through this and other OneGov agreements, GSA is providing federal agencies with essential IT tools, such as cloud services, to support the White House’s AI Action Plan.”

While GSA has brokered more than a dozen prior OneGov agreements with various leading tech companies, its latest with SAP is perhaps the most nuanced. Through it, federal agencies can access 80% discounts on license-based products, including SAP HANA, ASE, IQ, SQL Anywhere, Replication Server and PowerDesigner.

In addition, agencies will receive a 35% discount on SAP cloud services, including SAP Business Technology Platform, SAP Analytics Cloud and HR Payroll.

Finally, the new OneGov agreement also includes additional benefits, like “a $1-for-$1 first-year modernization incentive, waived data egress fees across government-certified hyperscaler environments, and dedicated SAP Enterprise Architect support,” per the GSA announcement.

“Across the world, governments are looking to the United States as the benchmark for digital modernization. SAP is proud to continue to support the U.S. government’s mission-critical operations,” Christian Klein, CEO of SAP SE, said in a statement. “Through OneGov, agencies can access SAP’s leading database, integration, analytics, and cloud solutions to run more efficiently in service of the public. This initiative demonstrates the U.S. federal government’s commitment to delivering secure, efficient, citizen-focused services at scale. At SAP, we’re dedicated to helping government modernize and deliver even greater value for American taxpayers.”

SAP’s OneGov deal follows a massive 10-year, $1 billion U.S. Army software contract through its National Security Services subsidiary — the latest major deal in the company’s decades-long relationship with the federal government. It also comes as the company is reimagining how to best serve government customers seeking continuous, secure and scalable innovation.

“Today, we strengthen our nearly three-decade partnership with the U.S. federal government and through the transformative OneGov initiative,” David Robinson, president of SAP Cloud ERP and managing director of SAP U.S. Public Services, said in a statement. “The GSA is driving an ambitious and pragmatic vision for government IT — simpler procurement, greater interoperability, and faster innovation delivery. The OneGov model enables agencies to adopt modern capabilities more efficiently.”