FedRAMP® Study: Improving Security Surpasses Increasing Revenue as the Top FedRAMP Driver

Coalfire-commissioned study on The FedRAMP Opportunity reveals top drivers, challenges, and rewards for achieving FedRAMP compliance

GREENWOOD VILLAGE, Colo., Sept. 10, 2024 /PRNewswire/ -- Coalfire, an industry-leading cybersecurity services and solutions company, today unveils a survey that examines the drivers that compelled over 300 respondents from global enterprises to pursue FedRAMP ATO (authority to operate). The study, The FedRAMP® Opportunity: An Executive Guide for Decision-Making, also reveals challenges that held some aspirants back from authorization and the rewards companies reaped from earning ATO.

Top line findings show a strong security consciousness among companies that pursued FedRAMP authorization, supporting its reputation as the gold standard of security regulations.

• Fortifying security edged out new pathway to revenue as the top driver for ATO. 62% turned to FedRAMP to improve security posture versus 57% for federal/state market access.
• FedRAMP beats out other vital, competing priorities. 84% of organizations evaluated other investment options when determining if FedRAMP is right for them.
• FedRAMP authorization accelerates the path to security compliance for HITRUST, GDPR, SOC, PCI, ISO 27001, and CMMC. 48% of organizations name improving compliance with other security and privacy frameworks as a driver for considering FedRAMP authorization.
• A shortage of talent with FedRAMP expertise presents the biggest challenge. 81% cites finding qualified personnel as a top 3 challenge and 35% cited talent as the top barrier, 4% more than the next biggest barrier, budget.
• Companies that did not proceed with FedRAMP ATO suffer FOMO. 73% of organizations that did not pursue FedRAMP ATO keep the door open to re-engage.

Given the talent shortage challenges, it is unsurprising that respondents also note the most difficult parts of the authorization process itself center on security compliance. 64% of organizations struggled with security control remediation and 61% struggled with the security assessment.

However, companies that overcame these and other challenges reap big rewards from earning ATO. The biggest benefits they cite from achieving ATO include meeting other compliance standards (72%), meeting or exceeding revenue targets (67%), and improving overall security posture (63%).

"These findings underscore that companies use FedRAMP's rigorous compliance standards to strengthen their security programs," said Karen Laughton, EVP of Cyber Advisory Services, Coalfire. "Anecdotal assumption is that cloud providers and SaaS companies spend millions on FedRAMP authorization to access the federal government market – that the ATO journey is mostly financially motivated. Instead, respondents are saying their top driver for compliance is to better mitigate the cyber threats and vulnerabilities that can disrupt business operations and damage corporate reputation."

Watch the on-demand webinar, The FedRAMP® Opportunity: Executive Guidance for Decision-Making, featuring Laughton and guest speaker, Maxine Holt, Senior Director of Cybersecurity at Omdia, to dive deeper into the study findings.

About Coalfire
Coalfire, headquartered in Denver, Colorado, is a global services and solutions company that specializes in cyber advisory, assessment, and security. The company also develops cutting-edge technology platforms that automate defenses against security threats for the world's leading enterprises, cloud providers, and SaaS companies. Coalfire is the foremost provider of FedRAMP compliance assessments and penetration testing services in the United States. For more information, visit www.coalfire.com and follow LinkedIn, Twitter, and Facebook.

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SOURCE Coalfire Systems, Inc.