Google and Amazon Seek Government Software Market Share Amid DOGE’s Efforts

Google and Amazon reportedly see an opportunity to gain ground in the government software market amid the Department of Government Efficiency’s (DOGE) efforts to reduce waste and inefficiency in the federal government.

DOGE has focused in part on the software used by the government, and it has been estimated that the companies’ rival, Microsoft, accounts for about 31% of the amount 24 federal agencies spend on software licenses, Bloomberg reported Friday (April 4).

Google and Amazon are working through trade groups to lobby members of Congress and the DOGE liaisons at federal agencies, suggesting that government agencies could save money by opening up contracts to more companies and avoiding “predatory” licensing agreements, according to the report.

Google aims to provide more software to government agencies, while Amazon is focusing on cloud computing, the report said.

Microsoft spokesperson Alex Haurek told Bloomberg, per the report, that it is “concerning but unsurprising to see certain industry players trying to manipulate decision makers, through shadowy front groups, rather than competing transparently on price and quality.”

Google spokesperson José Castañeda said in the report: “We’ve said for ages that government IT needs more competition to save taxpayers money and improve security, so it’s no surprise that legacy players prefer the status quo and criticize those who want change.”

DOGE was created in January with an executive order from President Donald Trump and was tasked with updating software and technology to boost efficiency and productivity within the federal government.

It was reported March 28 that DOGE was working on an overhaul of Social Security Administration computer systems, migrating the agency’s computer system of its longtime computer programming and onto a more modern equivalent.

On the same day, when Trump signed an executive order setting a Sept. 30 deadline for the federal government to stop issuing paper checks for disbursements, it was reported that DOGE estimated the Treasury Department could save $750 million by eliminating paper checks and associated lockbox maintenance.

Global professional services organization Accenture said March 20 that it had lost sales and revenue in its Accenture Federal Services businesses unit and faces continuing uncertainty due to the Trump administration’s efforts to operate the government more efficiently.