US Government agencies are increasingly procuring commercial cloud services for improving customer experience, reducing costs and securing data. The FedRAMP Marketplace continues to show robust growth of over 30% every year with US Government agencies granting nearly 1,000 ATOs for FedRAMP accredited cloud services. The table shown below shows steady growth in FedRAMP accredited cloud services (supply-side) and Agency ATOs of FedRAMP accredited cloud services (demand-side):
| Year | FedRAMP P-ATOs | Annual Growth of FedRAMP P-ATOs | Agency ATOs leveraging FedRAMP P-ATOs | Annual Growth of Agencies leveraging FedRAMP ATOs |
| 2017 | 52 | – | 390 | – |
| 2018 | 104 | 50% | 583 | 33% |
| 2019 | 170 | 39% | 926 | 37% |
Source: FedRAMP.gov Marketplace and GAO GAO-20-126
A recent market research report forecasts that agency demand for vendor-furnished cloud computing goods and services will grow from $5.3 billion in FY 2019 to $9.1 billion in FY 2024. The strongest and fastest-growing demand segment is for Software-as-a-Service (SaaS) companies based on a recent report by GAO. The survey responses from agencies indicated the highest number of cloud service authorizations through FedRAMP were for SaaS companies. Here is a chart showing the distribution of SaaS versus Platform-as-a-Service (PaaS) and Infrastructure-as-a-Service (IaaS) ATOs by agencies:
The FedRAMP marketplace data provides clear indications of demand and patterns of cloud consumption by Government agencies. SaaS offerings are clearly compelling for Government agencies looking for a fast return on investment with minimal implementation lag time while delivering better customer experience, security and cost efficiencies.
Are you a commercial SaaS or PaaS provider looking to sell your services to US Government agencies? Contact us for a free FedRAMP Accelerator Assessment for AWS hosted applications interested in pursuing a FedRAMP ATO.
Interested in learning more? Read some of our FedRAMP blog posts:
