Draft FedRAMP Memo: Explained by SBMCC

The advocation for removing references to interoperability and multi-cloud usage in government procurement threatens small businesses and the American people, as numerous issues and obstacles come with a single cloud approach. With a monopoly in the space, small businesses are blocked from entering the space; e.g., if a small business cannot afford its service, it is automatically restricted from bidding for a federal contract. Allowing for multi-cloud usage gives companies with tight budgets a chance. For instance, Amazon Web Services (AWS) is priced at $225/month, while Google offers services for $126/month. Furthermore, small businesses have more control and the ability to move applications directly and control cost, uptime, latency, and downtime with the freedom to use a platform that best suits their needs while minimizing vendor lock. Currently, AWS leads the global cloud market with a market share of 32%, with Azure following at 22% and Google at 11%.   

The Small Business Multi-Cloud Coalition advocates for modernizing the Federal Risk and Authorization Management Program (FedRAMP), a program passed in 2011 and has yet to be utilized. The Office of Management and Budget also released a draft memorandum in October 2023 to begin the utilization of FedRAMP. The program advocates for multi-cloud usage and, with its use, will provide significant value to federal agencies, the cloud marketplace, and, most importantly, small businesses. Utilizing FedRAMP results in a reduced technological footprint for federal agencies and makes attaining a government contract far more accessible and efficient for companies and the American public.  

Another significant issue with using a single cloud service, such as AWS, is risk mitigation associated with a lack of diversification. FedRAMP Modernization harmonizes cybersecurity and risk management compliance. Diversification in cloud systems promotes new and innovative technology that is essential for small businesses to protect themselves and monitor threats. Overall, the single cloud lacks interoperability, compatibility, and portability requirements, essentials for small businesses to succeed in government procurement. In short, don’t put all your eggs in one basket.