WASHINGTON, July 23 (Reuters) - The Pentagon announced on Thursday a nearly $7 billion, up-to-10-year agreement with Oracle ‌to consolidate the department's on-premises software licenses ‌into a single contract, the latest move by the Pentagon's technology ​chief to cut costs by eliminating fragmented purchasing. The Enterprise Software Agreement, negotiated by the Department of the Navy, is between the Pentagon and Oracle for its on-premises ‌compute usage. "By fundamentally improving how we procure on-premises Oracle capabilities, we ​are driving ​at least $441 million in ​taxpayer savings while rapidly ‌and effectively serving our warfighters," Pentagon Chief Information Officer Kirsten Davies said. The Oracle agreement builds on a similar effort Davies' office struck with Microsoft in May. That five-year, $9.69 billion deal consolidated Microsoft and other enterprise ‌software licenses scattered across the ​military services, the intelligence community ​and the Coast ​Guard into a single contract.