Recently Bloomberg Government published an article that describes the increasing awareness of the Federal Risk and Authorization Management Program (FedRAMP) as a major factor affecting the federal marketspace. The article indirectly indicates a major first-mover advantage, as there are “only 77 products” available to fulfill over two hundred Bloomberg-identified FedRAMP opportunities.
It is worth noting that 86% of these opportunities are not restricted by the lowest price, technically acceptable (LPTA) category, marking a major acknowledgement by the federal government to award based on value and "that agencies may be willing to pay more for FedRAMP-approved products and services".
Since the FedRAMP program allows a standardization of security authorization, cloud service providers that successfully receive a FedRAMP Authority to Operate (ATO) quickly benefit from an economies of scale opportunity and can "realize the benefits of being part of the program for years".
These elements, combined with the likely passage of the Modernizing Government Technology Act, point to an increasing and profitable federal cloud services market.
Coalfire is a FedRAMP Accredited Third Party Assessment Organization (3PAO) that performs Readiness, Assessment and Continuous Monitoring services for cloud service providers pursuing FedRAMP.
Related Coalfire Information:
Blog - FedRAMP Plans for 2017
Blog - The Cost of a FedRAMP Assessment from a 3PAO Perspective
Webinar – DoD Cloud Security, FedRAMP Readiness and FedRAMP for High-impact Systems