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Is Now the Right Time to Pursue FedRAMP? Key Market and Product Considerations for SaaS Leaders

For many SaaS companies that have successfully scaled in the commercial market, expanding into the U.S. Government sector presents a compelling revenue opportunity. The U.S. Federal Government is the world’s largest buyer of technology solutions, and FedRAMP authorization is often a necessary step to unlock contracts with federal agencies. However, FedRAMP has historically been  a rigorous, costly, and time-consuming process. Pursuing it at the wrong time can result in wasted resources and lost momentum. So, how can you determine if now is the right time to go after FedRAMP?

Here are key market and product considerations to evaluate before committing to the process.

February 10, 2025 | by CGC

Market Considerations

Government Demand for Your Solution

  • Have federal agencies already expressed interest in your product?
  • Have you identified specific use cases where your technology aligns with government needs?
  • Are there agencies that are already using your product in a non-FedRAMP capacity and looking for a compliant solution?

If the answer to these questions is yes, it may be time to move forward. If not, you may need to invest more in market development before taking on the FedRAMP process.

Competitive Landscape

  • Are your competitors FedRAMP authorized?
  • If so, is their authorization helping them win government contracts?
  • Are agencies struggling to procure your solution because of compliance barriers?

If competitors are winning deals due to their FedRAMP status, or if procurement teams are hesitant to engage with you because of a lack of authorization, the market may be signaling that FedRAMP is necessary for your growth.

Revenue Potential vs. Cost of Compliance

  • Have you analyzed the total addressable market (TAM) within federal agencies?
  • Do you have a clear revenue strategy and sales pipeline for the government sector?
  • Can you confidently project enough government revenue to justify the substantial investment in FedRAMP?

If your company does not yet have a clear revenue strategy for the government, pursuing FedRAMP prematurely may not be the best use of resources.

Product Considerations

Security Posture and Readiness

  • Is your SaaS product already built with strong security, privacy, and compliance features?
  • Do you have a well-documented security program, including regular audits, vulnerability management, and incident response?
  • Have you assessed your current security controls against FedRAMP requirements (e.g., NIST 800-53)?

If your product is far from meeting these security standards, you may need significant engineering work before you can successfully navigate the FedRAMP process.

Multi-Tenant vs. Government-Only Environments

  • Does your product architecture allow for a FedRAMP-compliant deployment?
  • Are you prepared to maintain a separate FedRAMP environment, if required?

Many SaaS companies opt for a government-specific deployment to isolate FedRAMP workloads. If your product architecture cannot support this, modifications may be needed before pursuing authorization.

Operational and Organizational Maturity

  • Do you have the resources to manage ongoing compliance and continuous monitoring?
  • Do you have a dedicated compliance or security team that can handle the FedRAMP authorization process?
  • Can your company sustain the operational burden of maintaining a FedRAMP-compliant system long-term?

FedRAMP is not just an initial investment—it requires continuous compliance efforts, regular audits, and dedicated personnel. If your organization lacks the necessary resources, you may need to wait until you can properly support the compliance demands.

CGC Origins Program Gives You the Answer

Successfully expanding into the U.S. Government market is not just about obtaining a FedRAMP authorization—it’s about having the right market opportunity, a compliant product, and a sustainable go-to-market strategy. The CGC Origins Program is designed to get you FedReady in 90 days for $30k.

CGC Origins Program

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Is Your SaaS Product Ready for FedRAMP? Key Considerations Before You BeginUnlocking the U.S. Government Market: A Massive Growth Opportunity for SaaS...