Tech firm ServiceNow agreed to major discounts for all government customers of its flagship software offering in the latest OneGov agreement brokered by the General Services Administration.
Announced on Wednesday, the months-in-the-making agreement will see ServiceNow offer up to a 70% discount off the list price to upgrades of its new Information Technology Service Management Pro and Pro-plus bundle, which includes ServiceNow’s AI Platform and an assortment of agentic AI capabilities. According to GSA, the ServiceNow AI Platform could boost government workflow efficiencies “by 30% or more based on projections, using AI to streamline a wide range of business processes.”
“This agreement is a logical next step in the AI transformation of government and positions us to deliver on the administration’s goals for efficiency, productivity, and the priorities outlined in President Trump’s AI Action plan,” Federal Acquisition Service Commissioner Josh Gruenbaum said in a statement. “We are excited to partner with ServiceNow as we work to accelerate federal innovation and efficiency with a powerful, AI-first platform to connect and streamline the government’s technology stack.”
In addition, ServiceNow will offer agencies a 40% discount on a standalone version of its ITSM Pro upgrade through September 2026. That IT service management software supports automation, analytics, secure intelligence and virtual agents to help agencies modernize legacy IT systems.
ServiceNow Chairman and CEO Bill McDermott, who had aligned and positioned the company around providing efficiency and AI before the terms became central to President Donald Trump’s second administration, said he sees ServiceNow serving as the “AI control tower” for the federal government’s ongoing digital transformation. The company’s software acts much like connective tissue to various software, providing users real-time visibility across the enterprise.
“When President Trump says the federal government needs to operate like a best-run business, he means it. ServiceNow’s role as the AI control tower for this transformation has never been more relevant,” McDermott said. “Our AI platform and solutions will help every federal agency consolidate the past, strengthen security, and deliver better outcomes for the American people.”
In a statement, GSA Acting Administrator Michael Rigas said its latest partnership with ServiceNow “will be instrumental in streamlining government technology, driving efficiency, and unlocking significant taxpayer savings.”
Since late April, GSA has brokered more than a dozen similar agreements with tech companies, including Google Public Sector, Adobe, Salesforce, Elastic, Oracle, Uber, IBM, Docusign, Amazon Web Services, OpenAI, Anthropic, Box and Microsoft, with cumulative estimated savings to taxpayers from those deals totaling several billion dollars.
More momentum for ServiceNow
While the government contracting landscape shifted dramatically after Trump’s November election win that ushered in the Department of Government Efficiency and a wide-scale rethinking of the federal workforce, ServiceNow has been one of a few tech companies that experienced continued growth amid the uncertainty.
During the first quarter of 2025, the company reported 30% higher sales in the public sector and won six new major government customers, with ServiceNow seeing an 18.5% year-over-year growth in total revenue.
In February, the company launched its Government Transformation Suite, taking its best commercial offerings and tailoring them specifically to serve government customers and “the new administration’s priorities of transparency, accountability and efficiency.” It also entered into new strategic partnerships or expanded relationships with other major tech firms, including NVIDIA, largely around accelerating AI offerings to its customers. The company’s second quarter revenue increased 22.5% year-over-year, suggesting its bets are paying off.
Government customers are increasingly betting on it, too.
According to federal contract data sourced via GovTribe from the Federal Procurement Data System, 415 government contract awards from federal agencies in the past 12 months have referenced ServiceNow. Some of its most high-profile government customers include large agencies like the Veterans Affairs Department, U.S. Navy, U.S. Postal Service, IRS, Defense Logistics Agency, State Department, Food and Drug Administration, Treasury Department and the CIA — all agencies undergoing major digital transformations.
In late July, ServiceNow announced a strategic partnership with CapZone Impact Investments LLC to develop a next-generation digital shipyard to “bolster U.S. Naval operations,” beginning in Mobile, Alabama. The program will use ServiceNow’s AI Platform as the digital backbone to “transform legacy shipbuilding and enhance U.S. Submarine manufacturing capabilities along the Gulf Coast and beyond.”
In another example of the ServiceNow’s expanding reach, the company’s suite was publicly touted by the CIA as a means for accessing and using AI capabilities across the agency. It’s also among a handful of vendors the Defense Logistics Agency is partnering with to explore potential uses of agentic automation — systems that can understand goals, plan processes and achieve actions with minimal human oversight.
“ServiceNow was made for this moment. We are laser-focused on modernizing government and elevating how it serves the American people. Our drive to support government efficiency is nothing new. We’ve been working with our federal customers on efficiency, transparency, accountability, plus great employee and citizen experiences, for years,” McDermott told Nextgov/FCW in a May interview at the company’s Knowledge 2025 conference in Las Vegas.
“My leadership team and I have been in active, ongoing discussions with senior officials in the administration where we have had very positive engagement,” he added. “We both agree and have a shared ambition to transform government and how it interacts with people by delivering the best results while returning money to the taxpayer.”
