What it takes to get FedRAMP authorized: Lessons from companies that did it

FedRAMP authorization is crucial for software companies aiming to sell to the U.S. federal government, requiring significant time and financial investment, traditionally taking 12 to 24 months and over $1 million for authorization. However, the introduction of FedRAMP 20x in March 2025 aims to streamline the process through automation and continuous validation, with some companies achieving authorization in as little as three months. The program has three impact levels—Low, Moderate, and High—based on data sensitivity, and companies must navigate complex requirements, including defining authorization boundaries, engaging Third Party Assessment Organizations (3PAOs), securing agency sponsorship, and managing continuous monitoring. Successful companies often build dedicated offerings for federal requirements, automate evidence collection, and focus on risk prioritization over checklist compliance, as demonstrated by companies like Wiz, GitLab, and Databricks. The 20x initiative has not altered the need for a mature security posture but has shifted the emphasis toward continuous validation, aligning with broader federal cybersecurity policies.