Oracle, Microsoft barely compete for a quarter of their US Federal contracts
"The product winner has been predetermined prior to the competition. This type of procurement may meet the legal definition of 'competition' under the Federal Acquisition Regulation , but as discussed later in this report, these instances of competition do not deliver meaningful price benefits.
The shift to the cloud presents another opportunity for vendors to increase their grip on government customers. For example, in 2019, Microsoft introduced a new licensing model which made it more expensive to use its products in cloud environments other than its own Azure. Microsoft is finding itself in hot water in Europe over certain licensing practises, with the Cloud Infrastructure Service Providers group filing a complaint inThe US government is itself fighting back. In 2022, it introduced the bipartisan SAMOSA Act, which requires government agencies to account for their COTS software and better understand their software licensing assets, rights, and liabilities.
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