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Continued FedRAMP Marketplace Growth Signals Strong Demand for FedRAMP Accredited Cloud Services in 2020

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: