Microsoft Lands $927 Million Pentagon Contract

Microsoft provides a wide range of software and also services, everything from Azure to security tools, the software giant is embedded deep into the enterprise world. This week, it was announced that Microsoft has landed a lucrative contract with the Pentagon to the tune of nearly a billion dollars.

In a statement released by the Pentagon, via Reuters, the government agency has awarded Microsoft a contract worth $927 million to provide technical support to the Defense Information System Agency. The statement in itself is vague and we don’t know the full extent of services that will be provided by Microsoft.

It’s likely that they will assist with security, deployment of applications and possibly the upgrade to Windows 10. It wouldn’t be surprising if they were also assisting with upgrading the government’s aging infrastructure and possibly moving some services to Azure.

These types of contract are highly sought after, not only for the revenue that they generate, but they are also stable as well. Meaning, it’s unlikely that a few months into the contract that it will be canceled or re-negotiated.

Microsoft’s stock price continues to climb and these types of announcements will only push the price higher. Upon opening this morning, the price peaked at 63.66 but is currently at 63.41 at the time of publication.