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 $400,000 to over $1 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 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, GDPR, and HIPAA.
- Ongoing compliance costs, including continuous monitoring and recertification every three years, 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, as guided by the FedRAMP Program Management Office (PMO).
For example: The cost of a gap analysis, a key step towards creating a Security Assessment Report (SAR), can range anywhere from $20,000 to $40,000, 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 $125,000 to $3 million. The 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 readiness 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 $40,000 to $50,000, although they can reach approximately $150,000 when factoring in documentation, interviews, and additional assessment expenses.
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, analysis and reporting, as well as cloud and cybersecurity engineering expenses.
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).
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 Recertification Costs
Securing FedRAMP certification 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 and recertification every three years.
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, 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 Certification Costs
An effective strategy to streamline the FedRAMP process and reduce costs is to leverage any existing global compliance work. Existing compliance work such as ISO 27001 certification, GDPR compliance factors, and HIPAA compliance can support FedRAMP compliance efforts, as they often require similar security controls and risk assessments.
Moreover, there are instances of global compliance efforts, including NIST SP 800-161 for supply chain considerations and Google Workspace’s FedRAMP High ATO for hosting FedRAMP data, that can be utilized to support the FedRAMP process.
Platforms like Amazon Web Services and Oracle also have arrays of tools that allow you to automate a lot of tasks that would otherwise be manual, time-consuming, and expensive.
Free Download: 2024 In-Depth Guide to Oracle Services for FedRAMP High Baseline
Selecting the Right FedRAMP Consultant
Selecting a FedRAMP consultant to steer your organization through the compliance process can tremendously influence the success rate of your certification efforts. A skilled consultant offers:
- Strong communication abilities
- A deep understanding of the assessment process and necessary documentation
- The capability to recognize and resolve potential challenges or obstacles
Additionally, previous experience with FedRAMP consulting can greatly enhance an organization’s readiness, instill trust in the security of cloud services, reduce certification timeline, and prevent costly mistakes.
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.
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 consultant, you can navigate the path to certification with confidence and success.
Frequently Asked Questions
How much does it cost to get FedRAMP certified?
Obtaining FedRAMP certification can cost between $400,000 and $1 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 certified?
Obtaining FedRAMP Authorization can take several months, with an agency’s ATO taking 4-6 months to complete. The process has been known to take up to 12-24 months, showing variation in the time it takes to obtain certification.
What is FedRAMP certificate?
The FedRAMP certificate is a U.S. government program that sets standard cybersecurity requirements for cloud service providers who wish to work with federal agencies. It ensures that their cybersecurity meets basic standards and provides a standardized approach to security assessment.
Is Google FedRAMP certified?
Yes, Google Workspace is FedRAMP certified at the Moderate and High baseline levels, along with compliance with other global standards and regulations.
What are the main costs associated with FedRAMP certification?
The main costs associated with FedRAMP certification include consultation and planning fees, implementation expenses, and assessment charges. These are the key financial considerations to account for when pursuing certification.
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