GSA and Elastic announce strategic agreement to drive federal cost savings

In a significant step forward for government IT modernization, the US General Services Administration (GSA) has entered into a strategic agreement with Elastic, the Search AI Company, to help federal agencies reduce costs and elevate their cybersecurity, observability, and AI capabilities.
This landmark agreement establishes new, government-wide pricing for Elastic’s full suite of solutions — both self-managed and cloud. Agencies can now access volume discounts of up to 60%, eliminating the inefficiencies of fragmented, one-off procurements. The agreement is a win-win for the government: simplifying the acquisition and procurement processes while modernizing legacy IT systems.
A smarter way for government agencies to buy
By leveraging the collective purchasing power of the federal government, GSA and Elastic have established a consistent, transparent pricing model that simplifies the acquisition and procurement processes for agencies of all sizes.
Under the agreement, agencies purchasing Elastic’s self-managed solution can access discounts starting at 27.5%, increasing up to 60% based on government-wide annual spend.
For FedRAMP Moderate cloud deployments through GovCloud, discounts start at 15%, scaling up to 32% at the highest volume tier. Pricing is valid for orders executed on or before September 30, 2027.
The agreement eliminates agency-by-agency negotiations and unnecessary contracting layers. The result: less time negotiating contracts, more time focusing on mission.
Elastic is committed to ensuring taxpayer dollars are used more efficiently by empowering the federal government to modernize and advance its IT capabilities through Search AI. We are proud to partner with GSA to bring greater capabilities to federal agencies at unprecedented savings, potentially reaching hundreds of millions of dollars in cost reductions over time.
Ash Kulkarni, CEO, Elastic
Supporting federal mandates for cost savings and innovation
The new Elastic-GSA agreement supports the broader government-wide push for IT efficiency. Recent executive orders and US Office of Management and Budget (OMB) guidance — particularly the President’s Management Agenda and the directives on government efficiency and AI innovation — emphasize cost-effectiveness, cybersecurity, and the adoption of AI to improve public services.
Elastic is well-positioned to help government agencies accelerate their missions efficiently. Using open source Search AI technology, Elastic’s data mesh approach can transform massive amounts of siloed data into actionable, mission-critical insights. Agencies looking to strengthen interoperability, combat fraud, reduce wasteful spending, improve security, and modernize IT are using Elastic as a strategic foundation for multiple use cases that rely on data, such as Zero Trust, logging compliance, and building GenAI applications.
Through this agreement, agencies can gain streamlined access to Elastic’s open, scalable technology, including:
- Next-generation security and logging: Elastic offers comprehensive logging and cybersecurity capabilities, including cutting-edge features such as AI Assistant for Security, Attack Discovery, and out-of-the-box detection rules to accelerate response times. Elastic’s tiered storage and logsdb index mode enable federal agencies to comply with M-21-31 logging requirements, making long-term log retention both operationally feasible and cost-effective.
- Search AI Lake: Elastic’s Search AI Lake provides unified, AI-powered distributed data access across all data types and systems, breaking down silos for mission-critical insight. Using a data mesh approach, Elastic enables data to remain in its original location but be searched, accessed, and analyzed holistically.
- Zero Trust capabilities: Elastic unifies data across all Zero Trust pillars, enabling agencies to seamlessly ingest, analyze, and act on threats while cost-effectively integrating with their existing systems.
- Open standards based observability: Gain full-stack visibility across IT environments with OpenTelemetry (OTel)-native support and real-time telemetry.
- Flexible deployment models: Cloud-native, hybrid, or on-prem — Elastic meets agencies where they are.
These capabilities provide a unified foundation for operationalizing data at scale, enabling agencies to not only strengthen their security posture but also reduce complexity and boost operational resilience.
Delivering mission value, securing the future
This agreement demonstrates how forward-looking partnerships between government and key industry players can deliver breakthrough technologies while respecting budget constraints and federal priorities. As federal agencies confront increasingly complex data and security environments, Elastic provides a trusted foundation for secure, scalable innovation.
Elastic and GSA will continue working together to expand adoption and unlock value across the public sector. With this partnership, agencies now have a powerful tool to modernize, secure, and simplify — without breaking the budget.
Related resources:
- Customer stories: Elasticsearch in action in public sector
- Blog: Understanding data mesh in public sector
- White paper: Does your Zero Trust strategy have a unified data layer?
- White paper: OpenTelemetry in public sector using Elastic
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