The FedRAMP authorization process is often cited as a major barrier to entry for cloud service providers (CSPs) looking to work with federal agencies. However, a closer look at the data reveals that most cloud deployments only require a moderate impact level authorization, which is a more achievable and less costly goal.
~74%
— percentage of cloud deployments requiring a moderate impact level authorization (Source: FedRAMP Marketplace)
The Cost and Timeline of FedRAMP Authorization
While the average cost of a FedRAMP high impact level authorization is ~$1.5 million and takes ~18 months to complete, a moderate impact level authorization can be achieved for ~$200,000 in ~6 months, according to data from the General Services Administration (GSA).
~$200,000
— average cost of a moderate impact level authorization (Source: GSA)
This significant reduction in cost and timeline makes it more feasible for CSPs to achieve a moderate impact level authorization, which is sufficient for most cloud deployments.
“CSPs should focus on achieving a moderate impact level authorization, which is a more achievable and less costly goal, and can be used as a stepping stone to higher impact levels.”
— GovCon IC (The Government Contractor Intelligence Center) analysis
Actionable Takeaways
- Focus on achieving a moderate impact level authorization, which is sufficient for most cloud deployments
- Budget ~$200,000 and ~6 months for the authorization process
- Use the moderate impact level authorization as a stepping stone to higher impact levels
What to do this week
Review your cloud deployment plans and determine if a moderate impact level authorization is sufficient. If so, start planning your authorization process and budget accordingly.
By understanding the cost and timeline of FedRAMP authorization and focusing on achieving a moderate impact level, CSPs can increase their chances of success and improve their competitiveness in the federal market.
