Starting on 1 May, it will renew the existing MOU and will run until April 2024.
"This new agreement with Microsoft builds on the government's One Government Cloud Strategy, which supports the key principle of treating government as one single customer," Gareth Rhys Williams, the government's chief commercial officer said.
"It shows the government's determination to drive transformation as well as adopt value for money technologies that improve services and ensure government departments and their staff have the digital tools they need, now and in the future."
The DTA21 MOU covers products such as Microsoft Teams, Microsoft 365 E5 Security and Compliance, Phone System Calling Plans, Dynamics 365, PowerApps, Azure Cognitive Services and AI, Azure Analytics, Azure Synapse and Azure Arc.