What is FedRAMP Moderate Equivalent and Do You Need It? ‍

Are you with a SaaS looking for more revenue opportunities? 

Have your sales teams talked with orgs who handle sensitive government data and asked whether you’re FedRAMP equivalent or authorized? 

If you aren't, you need to know what FedRAMP moderate equivalent is, why you might need it, and the fastest way to get it, before you decide if it’s right for you. 

We specialize in helping organizations like yours get FedRAMP faster for less. Here we’ll explain:

  • The difference between FedRAMP authorization and equivalence
  • New revenue opportunities with FedRAMP equivalence
  • Pros and cons of becoming FedRAMP equivalent
  • How to spend less & get FedRAMP equivalency faster

FedRAMP Authorized vs FedRAMP Equivalent

What is FedRAMP Authorization

Authorization from the government’s Federal Risk and Authorization Management Program or FedRAMP demonstrates that your cloud service can secure sensitive government data. 

To get authorized you must: 

  • Find a government customer (called a sponsor)
  • Implement, document, and follow strict security procedures 
  • Have a 3PAO (3rd party assessment organization) audit your security to ensure compliance with FedRAMP regulations 
  • Get approval from the FedRAMP PMO (program management office). 

What is FedRAMP Equivalence

Becoming FedRAMP equivalent allows you to sell your cloud services to the 300,000+ companies that sell physical products to the Department of Defense. 

FedRAMP equivalence requires the same controls, documentation, and 3PAO assessment as FedRAMP moderate authorization. 

How is FedRAMP equivalent different from authorization?

  • FedRAMP equivalent orgs don’t need to find a government sponsor – one of FedRAMP’s most time consuming hurdles. 
  • Your final authorization will come from the DIBCAC (Defense Industrial Base Cybersecurity Assessment Center) rather than the PMO.

Why Get FedRAMP Equivalence? 

You’re required to be FedRAMP equivalent if you want to sell your cloud services to any of the 300k+ companies who sell products to the DoD. These companies make up the DIB (Defense Industrial Base). 

FedRAMP equivalence (or authorization) is a must if you’re a CSP looking to sell to DIB members and your product would be used to store, send, or receive CUI.  

Data that passes between the DoD and DIB members, and the data that goes from one DIB member to another is called CUI (controlled unclassified information). It’s considered sensitive, even though it’s not classified. 

According to the December 2023 equivalency memo, DIB members are on the line for security practices of any SaaS they contract with. DIB members only contract with companies that have FedRAMP equivalence or moderate authorization to protect themselves and their sensitive data.

Get a free security gap assessment to identify what you need to become FedRAMP equivalent.

Pros & Cons of FedRAMP Equivalence

PROS

  • New revenue opportunities. Without FedRAMP Equivalence you might not be able to contract your SaaS products with any of the 300k companies in the DIB.

  • It strengthens your security posture. It’s never a bad idea to provide your customers with excellent security. NIST 800-53 controls, which is what FedRAMP uses, are the gold standard of security. This will provide your customers assurance that their data is safe. 

  • Gives you an advantage with government agencies over competitors without FedRAMP. If you’re already equivalent, government agencies may choose you over unFedRAMPed competitors.

CONS

  • Any type of FedRAMP is pricey. Expect costs from $400k to $2 million. You’ll likely need to hire new employees to manage your security, buy hardware and software, and pay for 3PAO assessments.

  • FedRAMP is labor intensive and requires continual attention, called ConMon (continuous monitoring), to maintain your security and FedRAMP equivalent status.

  • You can’t sell directly to a government agency. If you do find a sponsor, you would already have FedRAMP moderate security controls in place so getting authorized should be fairly simple.

The Fastest way to Become FedRAMP Equivalent 

get fedramp equivalent faster with paramify

Paramify makes FedRAMP equivalence easier by automating security planning, SSP generation and POA&M management. 

You’ll need an SSP (system security plan) to be FedRAMP authorized or FedRAMP equivalent. An SSP is hundreds to thousands of pages that track your security controls. 

You can automatically generate your FedRAMP Equivalent SSP in hours with Paramify. It’s more accurate, less expensive, and much easier.

Many companies waste hundreds of thousands of dollars writing their SSP(s) manually over months/years. 

But you don't have to.

Sign up for a free demo to see a preview of your automated ATO package

Benefits of Creating A Digital SSP With Paramify

Becoming FedRAMP equivalent is faster, easier and less expensive when you use Paramify.

There are other services that can speed up the SSP process, but Paramify is the only software that fully automates your SSP

Your Automated SSP is

→ Check out our pricing to see if Paramify is right for your budget.

Security Benefits of the Paramify Approach

When you pursue any type of FedRAMP with Paramify you start with excellent security strategy and planning. This security 1st approach enables better overall security. 

A math problem that starts wrong will always end up wrong.

We’ll help you set your security up right from the start so your security stays top notch. 

Build Your Security Plan and Get Your Automated SSP

Now that you know the basics of FedRAMP you can decide if it’s the best decision for your company.

Ready to get started? Schedule your free Paramify demo or reach out with any questions – our team loves to help.

Want to see Paramify in action first? Request a demo video below:

Learn More: 

Becki Johnson
Oct 2024
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