New York State IT Office Partners with AWS for AI and Cloud Services, Saving Taxpayers $58 Million

On Monday, the New York State Office of Information Technology Services (ITS) announced a new enterprise cloud services agreement with Amazon Web Services (AWS). The deal will bring AWS’s artificial‑intelligence and cloud‑computing capabilities to state agencies and employees for the next three years. The agreement is part of a broader services strategy that has already delivered about $58 million in savings for taxpayers.

The partnership is designed to cut procurement hurdles for agencies, speed statewide innovation, and give workers “first‑class technology and training tools.” Under the contract, state employees at participating agencies will be able to use AWS AI and cloud services at a lower cost than they would pay if they procured the services on their own.

The move follows a similar initiative announced in April by Gov. Kathy Hochul, who introduced the state’s custom AI tool, AI Pro, powered by Google Gemini. AI Pro and its training materials are now available to the more than 100,000 employees who work for the state.

The agreement comes as the ITS office, led by Chief Information Officer Dru Rai, is finishing a transition that makes the office the single technology provider for all New York State agencies. The new model pairs agency subject‑matter experts with high‑level technical support from ITS. According to the office, the change has already reduced the number of unresolved incidents and requests that agencies face each year, allowing them to focus on more productive work.

“At ITS, we are committed to providing high‑quality technology solutions in the most simple, streamlined, and affordable way possible,” Rai said. “I thank AWS for being a trusted partner in our ongoing efforts to upskill the state workforce and assist agencies in delivering for New York, while ensuring our residents get the services they need and deserve in a timely manner. Today, we are choosing innovation AND affordability, and taking an important step forward in the State’s technology journey.”

The consolidation of enterprise agreements is a key part of the strategy. The state has already realized $58 million in cost savings for itself and its taxpayers through this approach. The new AWS contract is expected to accelerate the onboarding of agencies and their employees, giving them access to advanced cloud and AI tools that can improve service delivery and operational efficiency.

The agreement is one of several steps the state is taking to modernize its technology infrastructure. By leveraging AWS’s global cloud platform, New York State can reduce the time and expense associated with building and maintaining its own data centers. The partnership also supports the state’s broader goal of making technology more accessible to public‑sector workers, a priority highlighted by the AI Pro rollout.

In summary, the New York State Office of Information Technology Services has secured a three‑year agreement with Amazon Web Services that will provide AI and cloud services to state agencies at a lower cost. The deal is part of a strategy that has already saved $58 million for taxpayers and is expected to streamline procurement, accelerate innovation, and improve the efficiency of state agencies.