Let’s get this out of the way now: There is no one answer to the question of how much FedRAMP certification will cost. There are many, many factors that go into calculating your final bill, and that’s what we’re going to discuss today.
Loosely speaking, the FedRAMP authorization process can cost anywhere from $500,000 to over $1.5 million, and likely more than that for a complex cloud service implementation.
Factors can include consulting, planning, and assessment fees, services like documentation development, continuous monitoring, and more.
Let’s break it down.
Key Takeaways
- FedRAMP certification involves significant financial investment across multiple stages, with costs varying widely based on consultation and planning fees, implementation and remediation expenses, and assessment charges, influenced by factors such as cloud service type, company size, and service complexity.
- Organizations can explore a variety of financing options for FedRAMP compliance, including federal agency sponsorship, private financing, and SBA funding, and reduce costs by leveraging existing compliance work from standards like ISO 27001, SOC2, and CMMC.
- Ongoing compliance costs, including continuous monitoring, significant change requests, and annual assessments, must be factored into the total cost of maintaining FedRAMP certification, which can range from tens of thousands to millions of dollars depending on the organization’s size and complexity.
Find out how much FedRAMP authorization will cost for your organization. Get in touch with 38North Security today.
Breaking Down FedRAMP Certification Costs
The journey to certification is complex and expensive — there are no two ways about it. From initial consultation and planning fees to implementation costs and assessment charges, each stage of the FedRAMP process, including the authorization process, carries its own set of financial commitments.
Learn more: Achieving FedRAMP Compliance: The Beginner’s Guide to Authorization
Organizations first grapple with these costs during the consultation and planning stage, as they start to fully comprehend the task at hand.
Consultation and Planning Fees
The consultation and planning phase marks the beginning of the FedRAMP certification journey. This critical stage involves gap analysis, advisory support, and the creation of essential documentation, to meet the requirements of FedRAMP and sponsoring agencies.
For example: The cost of a gap analysis, a key step towards creating a Security Assessment Report (SAR), can range anywhere from $50,000 to $80,000, influenced by a variety of factors. The cost of advisory support during this phase can range from tens of thousands to millions of dollars, depending on the organization’s size and complexity.
Implementation Expenses
After the planning stage, organizations are expected to tackle the identified gaps and put into action remedial measures. These implementation expenses typically fall between $500,000 to $3 million. This variance is due to factors such as the project scope and the complexity of implementing and documenting the required security controls for commercial cloud services.
The complexity of the cloud service offering directly impacts the implementation costs. More complex services may require extensive security controls, additional documentation, and heightened efforts to ensure compliance, all of which contribute to higher costs.
Assessment Charges
FedRAMP independent assessment charges refer to the fees paid to Third-Party Assessment Organizations (3PAOs) for carrying out exhaustive security assessments and reviews. These charges typically range from $150,000 to $250,000 when factoring in assessment planning and activities, including the conduct of a comprehensive penetration test.
The pricing is influenced by several factors, including the chosen third party assessment organization and the extent of assistance required, with the primary cost elements encompassing consultation and planning, implementation, remediation, analysis, and reporting, as well as cloud and cybersecurity engineering expenses. System complexity in terms of application and infrastructure complexity, reliance on external third-party tooling, breadth and scope of cloud service offering, and the number of service teams supporting the system all play a critical role in pricing negotiations.
Learn more: What to Expect When You’re Expecting a FedRAMP 3PAO Assessment
Additional Factors Affecting FedRAMP Compliance Cost
Beyond the explicit costs associated with each phase of the FedRAMP process, there are several underlying factors that can significantly influence the overall cost of achieving FedRAMP compliance. These factors include the type of cloud service being offered, the size and resources of the company, and the complexity of the offering.
Cloud Service Type
The type of cloud service being offered can significantly affect the scope and complexity of the FedRAMP process. Within the FedRAMP framework, the distinctions are between Infrastructure as a Service (IaaS), Platform as a Service (PaaS), and Software as a Service (SaaS). Cloud deployment models including government community clouds, hybrid clouds, etc. also play an important role.
Each of these categories carries its own unique challenges and monetary considerations.
Company Size and Resources
The scale and resources of a company are crucial determinants of the effort level and investment needed to achieve FedRAMP compliance. Small businesses may need to allocate a substantial portion of their budget and dedicate personnel to ensure compliance. In contrast, larger businesses with extensive IT infrastructure and a higher number of cloud services may require more resources, leading to higher compliance costs.
The size of a company’s workforce can also impact the expenses associated with FedRAMP compliance, as the process involves personnel training. For small businesses, the pursuit and maintenance of a FedRAMP Authority to Operate (ATO) can necessitate a greater allocation of resources compared to larger organizations.
Complexity of the Offering
The intricacy of the cloud service offering can also considerably affect the cost of securing FedRAMP compliance. Factors contributing to this complexity include the number of workloads, databases, platforms, storage systems, and the security models being used. The quantity of these components influences the three main cost factors of FedRAMP compliance—consultation and planning, implementation, and analysis and reporting.
Customizations in cloud services can also significantly impact the cost of obtaining FedRAMP certification, with expenses influenced by the project model and the specific nature of the customizations.
Continuous Monitoring and Ongoing Costs
Securing FedRAMP authorization is merely the initial step. Organizations must also account for the costs tied to maintaining compliance over a period of time. This includes continuous monitoring requirements, significant change requests, and ongoing annual assessments.
The typical cost range for annual 3PAO assessments to ensure FedRAMP compliance is between $75,000 to $125,000. It’s important to note that ensuring compliance with FedRAMP requirements can result in significant costs, which can range from tens of thousands to millions of dollars, varying based on the organization’s scale and intricacy.
Managing FedRAMP Authorization Costs
However worthwhile and despite obvious benefits, the process of obtaining your FedRAMP ATO is a substantial upfront cost. There are ways to manage this.
Financing Options for FedRAMP Projects
Despite the intimidating costs and federal risk linked to achieving FedRAMP compliance, businesses have several financing options at their disposal. These include securing federal agencies sponsorship/procurement, seeking private financing options, or tapping into Small Business Administration (SBA) funding. Each of these options presents its own advantages and potential challenges, and the best choice will depend on the specific circumstances and needs of your organization.
Ways to Lower Authorization Costs
An effective strategy to streamline the FedRAMP process and reduce costs is to leverage existing compliance efforts. Existing compliance work such as ISO 27001 certification, SOC2 audits, and HIPAA compliance can support FedRAMP compliance efforts, as they often require similar security controls and risk assessments.
Moreover, inheriting security controls from hyperscaler services provided by Amazon Web Services (AWS), Google Cloud Platform (GCP), Microsoft Azure, Oracle Cloud Infrastructure (OCI), and IBM Cloud and related SaaS offerings reduce the burden on cloud service providers seeking FedRAMP by lowering overall costs.
Free Download: 2024 In-Depth Guide to Oracle Services for FedRAMP High Baseline
Selecting the Right FedRAMP Advisor
Selecting a FedRAMP advisor to steer your organization through the compliance process can tremendously influence the success rate of your certification efforts. A skilled advisor offers:
- Strong communication abilities between project stakeholders, including sponsors and the FedRAMP PMO.
- Intimate understanding of all FedRAMP requirements, controls, and how they are typically implemented by different industries.
- A deep understanding of the assessment process and necessary documentation, including nuances associated with the FedRAMP PMO and 3PAOs.
- The capability to recognize and resolve potential challenges or obstacles.
- Correlation to other standards and regulations.
Additionally, previous experience with FedRAMP engagements can greatly enhance an organization’s readiness, instill trust in the security of cloud services, reduce authorization timeline, and prevent costly mistakes. Choosing the right FedRAMP advisor is critical to successfully completing FedRAMP on time and within budget.
Ready to start your FedRAMP compliance journey? Take advantage of 38North Security‘s experience and expertise. Speak to a cybersecurity expert today.
Case Studies: Successful FedRAMP Compliance Projects
A close examination of case studies from successful FedRAMP compliance projects can provide invaluable insights into the strategies and best practices put into practice by different organizations. These real-world examples can be instrumental in guiding others through the certification process in a more effective and efficient manner. The analysis of such case studies highlights the importance of strategic alignment, efficient communication among teams, and cooperation between the organization and the cloud service provider.
Learn more about how we help CSPs achieve FedRAMP authorization and other compliance frameworks: Case Studies
Summary
Achieving FedRAMP compliance is a journey filled with numerous hurdles and costs, but with the right strategies, guidance, and resources, it’s a feat that’s well within reach for organizations of all sizes and types. By understanding and anticipating the costs associated with each phase of the process, leveraging existing compliance work, and selecting the right FedRAMP advisor, you can navigate the path to certification with confidence and success.
Frequently Asked Questions
How much does it cost to get FedRAMP authorized?
Obtaining FedRAMP certification can cost between $400,000 and $1.5 million or more, depending on the project model and nature of services purchased. However, utilizing solutions like ATO Acceleration can help reduce time and costs by 40%.
How long does it take to become FedRAMP authorized?
Obtaining FedRAMP Authorization can take several months, with an agencies ATO taking 4-6 months to complete. The process has been known to take up to 12-24 months, inclusive of engineering or changes required to meet changes, showing variation in the time it takes to obtain authorization.
What is FedRAMP authorization?
According to the FedRAMP website, “The Federal Risk and Authorization Management Program (FedRAMP) is a government-wide program that promotes the adoption of secure cloud services across the federal government by providing a standardized approach to security assessment, authorization, and continuous monitoring for cloud products and services. FedRAMP empowers agencies to use modern cloud technologies, with an emphasis on security and protection of federal information.”
Is Google FedRAMP authorized?
Yes, Google Workspace maintains two independent FedRAMP authorizations: Google Workspace and Google Cloud Platform both have FedRAMP High authorizations.
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