Google is offering big discounts specifically for the US government

As part of his government spending cuts, Trump has managed to secure discounts from Alphabet and many other players in the cloud sector to use their services at a lower cost.

Alphabet is preparing to offer significant discounts on its cloud computing services to the US government, according to the Financial Times. The deal, which could be finalized in the coming weeks, is part of President Donald Trump's efforts to drastically reduce federal spending.

Last week, The Wall Street Journal reported that Oracle would offer federal agencies a 75% discount on its licensed software, as well as a "substantial" discount on its cloud services, valid until the end of November.

Google's contract is expected to be in line with these terms, according to the Financial Times, citing a senior official at the General Services Administration (GSA). Similar discounts are also expected from Microsoft Azure and Amazon Web Services.

"Each of these companies is fully committed, they understand the issues," the official told the newspaper. "We will reach an agreement with all four."

In April, Google had already agreed to a 71% discount on its suite of business applications for federal agencies, valid until September 30. Widespread adoption of this offer within the administration could generate up to $2bn in savings.