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Small Cloud Providers Struggling With New Federal Rules

New certification requirements for government contractors mean bad news for small firms, say entrepreneurs.


Small cloud service providers are struggling to meet new standards for government contractors, says a new article in The Washington Post.

The U.S. government rolled out FedRAMP, its new Federal Risk and Authorization Management Program, in early June, as a way of standardizing basic security requirements for cloud computing providers that want government contracts.

But many small businesses will have a tough time getting through, the Post reports, thanks to a long application process and some bottlenecks in the approval process: The hundreds of businesses seeking FedRAMP approval must jump through multiple government hoops, with only three agency officials approved to carry out final reviews and only nine "third-party assessment organizations" currently approved to conduct initial audits.

The time and resources required mean bad news for smaller firms, one entrepreneur told the paper: "The traditional players and big system integrators are going to be able to fund vast amounts of their products through FedRAMP, and many of them have long histories working with the federal government and are going to have an easier time securing an ATO," said Kloudtrack CEO Michael Binko.

Last updated: Jun 18, 2012

CAITLIN BERENS writes about business innovation and entrepreneurs. Before Inc., she worked at Billboard, SELF, and Better Homes and Gardens. She attended Drake University, and lives in Brooklyn, New York.

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