Should Startups Care About FedRAMP?
(Spoiler: Yes, If They Want Federal $$)
When early-stage companies talk about product-market fit, they’re usually thinking about commercial buyers—not the U.S. federal government. And that’s a mistake.
Because if your startup is building a SaaS product with security, scale, and potential for critical infrastructure use—there’s a $100B+ federal IT market waiting for you. But there’s a catch, and its name is FedRAMP.
The Compliance Roadblock That Scares Startups Off
FedRAMP (the Federal Risk and Authorization Management Program) is the mandatory security framework for any cloud provider selling to the federal government. It’s notoriously complex, expensive, and slow—think 3–5 years and $3M+ slow.
So most startups—understandably—assume it’s something to “worry about later.”
But here’s the twist: by the time you're ready, it's often too late.
If you wait until a federal opportunity lands in your inbox, and you're not FedRAMP-compliant, the deal is already slipping away.
Flip the Script: Compliance as a Go-to-Market Advantage
This is exactly where Knox Systems comes in.
We built the first FedRAMP-compliant cloud platform purpose-built for SaaS vendors. With Knox, startups can become FedRAMP-ready in just 90 days, at 90% lower cost, and without needing your own agency sponsor.
That means you don’t have to delay your roadmap, hire a team of compliance specialists, or containerize your architecture just to access federal buyers. We meet you where you are—whether you’re running monoliths or microservices.
Why Startups Should Absolutely Care
Let’s get specific. Here’s why your startup should prioritize FedRAMP early:
- Revenue Diversification: Government contracts are stable, high-value, and long-term.
- Faster Sales Cycles: Pre-authorized platforms like Knox let you say yes to buyers with short timelines.
- Increased Valuation: Investors love startups with public sector traction and regulatory readiness.
- Market Differentiation and Competitive Advantage: Most startups aren’t FedRAMP-compliant. You’ll stand out immediately.
- Security Maturity: Even beyond federal sales, FedRAMP alignment improves your trust posture with all enterprise buyers.
Frequently Asked Questions
1. Why should startups care about FedRAMP compliance early on?
FedRAMP compliance opens access to the $100B+ federal IT market, giving startups a competitive edge with secure, compliant solutions that attract long-term government contracts.
2. What makes FedRAMP challenging for early-stage SaaS companies?
The traditional FedRAMP process is costly and time-consuming, often requiring years and millions of dollars to complete, which discourages many startups from pursuing it early.
3. How does Knox help startups achieve FedRAMP readiness faster?
Knox provides a pre-authorized, FedRAMP-compliant infrastructure that helps startups become audit-ready in just 90 days, at 90 percent lower cost and without an agency sponsor.
4. How can FedRAMP readiness improve a startup’s market position?
Achieving readiness signals maturity and security, improves investor confidence, accelerates government sales, and enhances credibility with enterprise buyers.
5. What happens if startups wait too long to pursue FedRAMP?
Delaying FedRAMP alignment can cause missed federal opportunities, as most agencies require compliance before procurement begins, making late readiness a costly setback.
TL;DR
Startups shouldn’t wait until they’re “ready” to think about FedRAMP. If federal contracts are even remotely in your vision—Knox can get you there faster, cheaper, and smarter than you ever thought possible.
Let your competitors ignore FedRAMP. You’ll be winning contracts while they’re Googling “ATO meaning.”
BOSTON--(BUSINESS WIRE)--OutSystems, a leading AI development platform, today announced that it has achieved Federal Risk and Authorization Management Program (FedRAMP) Authorization. With this certification, OutSystems now offers U.S. federal agencies an authorized, full-stack custom application development platform designed to deploy and manage mission-critical applications while meeting the government’s data security requirements.
A rigorous and exclusive U.S. government program, FedRAMP is designed to standardize security assessment and authorization for cloud service offerings, accelerating the adoption of government-grade cloud solutions by federal agencies. OutSystems has partnered with Knox, the largest and longest-running managed federal cloud provider, to achieve FedRAMP Authorization.
The FedRAMP-Authorized OutSystems platform combines enterprise-grade software development with end-to-end, full-stack cloud development. Unlike process-centric platforms and custom development, OutSystems eliminates vendor lock-in and gives federal agencies the speed and flexibility required to support a wide range of federal use cases, from frontline digital services to deeply customized mission systems - on a FedRAMP-Authorized platform
“Federal agencies face a modernization paradox: they must rapidly improve digital services and upgrade aging systems, but are constrained by shrinking budgets, limited IT staffing, and stringent security requirements,” said Woodson Martin, CEO at OutSystems. “The FedRAMP-Authorized OutSystems platform is designed to solve these modernization challenges by enabling federal agencies to accelerate digital transformation while reducing risk, controlling costs, and maintaining long-term ownership and scalability.”
The platform empowers federal agencies to build custom digital services tailored to their specific mandates—from citizen-facing web and mobile services, such as benefits portals, grants intake, and field inspections, to complex case management, program oversight, and core mission systems. FedRAMP-Authorized OutSystems helps federal agencies achieve:
- Fast, Phased Modernization
OutSystems enables agencies to rapidly build and modernize mission-critical digital services without a rip-and-replace strategy. Reusable components, acceleration tools, and easy integration with existing systems accelerate time to value. - Mission-Centric Agility with Ownership and Control
OutSystems empowers agencies to deliver any digital service—from citizen-facing web and mobile experiences to complex case management and core mission systems. Its application-centric architecture, extensibility, and customization enable long-term ownership of IP without vendor lock-in. - Enterprise-Grade Security, Governance, and Compliance
OutSystems delivers government-grade security and reliability by design through a FedRAMP-Authorized cloud environment in partnership with Knox. Built-in security controls, automated DevSecOps, high availability, and centralized governance ensure consistent compliance, operational resilience, and predictable costs across the application portfolio.
“Federal agencies increasingly require platforms that combine speed with the flexibility to support highly specialized mission requirements,” said Carrie Lee, former Chief Product Officer and Deputy CIO for the Department of Veterans Affairs. “OutSystems FedRAMP Authorization expands access to a full-stack customer application development platform capable of modernizing complex legacy systems while enabling incremental, lower-risk transformation.”
“Modernization in government too often stalls at compliance,” said Irina Denisenko, CEO of Knox Systems. “Partnering with OutSystems helps turn FedRAMP from a blocker into an enabler - unlocking secure, scalable access to modern development capabilities for federal agencies.”
Learn more about FedRAMP-Authorized OutSystems here.
About OutSystems
OutSystems is a leading AI development platform trusted by thousands of customers worldwide. The platform empowers CEOs, management teams, and technology leaders to build mission-critical applications and agentic systems that grow revenue, streamline operations, and deliver exactly what businesses need.
While evolving AI pilots into production success can be challenging due to talent gaps, legacy systems, imperfect data, and sprawling point solutions, OutSystems provides a proven AI development platform and experience that enables innovation up to 10x faster with the assurance of built-in security, scalability, and governance.
Recognized as a leader by analysts, IT executives, business leaders, and developers around the world, global brands trust OutSystems to innovate as fast as the evolving market demands and orchestrate powerful human + AI collaboration in the agentic future.
Founded in 2001, the company’s network spans more than 60 million end users, over 500 partners, and active customers in 75+ countries across 20+ industries. Learn more at www.outsystems.com.
Contacts
Media Contact:
Shayna Chapel
pr@outsystems.com
OutSystems Achieves FedRAMP Authorization to Accelerate Digital Modernization Across U.S. Federal Agencies
OutSystems platform empowers federal agencies to rapidly modernize legacy systems and deliver mission-critical digital services, while ensuring government-grade security and reliability
OutSystems Achieves FedRAMP Authorization to Accelerate Digital Modernization Across U.S. Federal Agencies
OutSystems platform empowers federal agencies to rapidly modernize legacy systems and deliver mission-critical digital services, while ensuring government-grade security and reliability
NEW YORK and RESTON, Va. — February 3, 2026 — Knox Systems, the largest FedRAMP managed cloud solution, and Carahsoft Technology Corp., The Trusted Government IT Solutions Provider®, today announced a partnership. Under the agreement, Carahsoft will serve as Knox Systems’ Master Government Aggregator®, making Knox’s Federal Risk and Authorization Management Program FedRAMP®-authorized managed cloud and AI security platform available to the Public Sector, independent software vendors (ISVs) and commercial customers through Carahsoft’s reseller partners and NASA Solutions for Enterprise-Wide Procurement (SEWP) V, Information Technology Enterprise Solutions – Software 2 (ITES-SW2), National Association of State Procurement Officials (NASPO) ValuePoint and OMNIA Partners contracts.
As Government agencies accelerate the adoption of Software as a Service (SaaS) and artificial intelligence (AI), security, compliance and cost remain persistent barriers. Knox Systems eliminates these barriers by delivering FedRAMP-grade cloud infrastructure and continuous compliance monitoring, enabling organizations to quickly deploy modern SaaS and AI tools without compromising security or mission resilience.
“Government agencies want access to the best commercial SaaS and AI technologies, but legacy infrastructure and compliance complexity often slow progress,” said Irina Denisenko, CEO of Knox Systems. “By partnering with Carahsoft, we are expanding access to Knox’s secure managed cloud and continuous compliance capabilities, giving agencies a faster, lower-risk path to modernize while meeting the highest Federal security standards.”
The partnership with Carahsoft and its reseller partners provides Public Sector agencies, ISVs and commercial customers with seamless access to Knox Systems’ compliance solutions. The company’s solutions enable organizations to assess, deploy and secure SaaS and AI applications using NIST 800-53 controls, the foundation of FedRAMP compliance, while maintaining real-time visibility into risk and configuration drift.
Federal agencies face increasing pressure to move away from legacy, on-premise infrastructure and toward commercial off-the-shelf cloud solutions. While SaaS adoption improves efficiency and security, only a fraction of available commercial tools are authorized for Federal use. Knox closes the gap by providing agencies with a compliant cloud environment to securely run SaaS and AI applications, streamlining authorization and reducing ongoing operational burden.
“Knox Systems’ managed cloud and compliance capabilities empower organizations to modernize rapidly while ensuring adherence to critical Federal security requirements,” said Alex Whitworth, Cybersecurity Solutions Vertical Executive at Carahsoft. “The company’s platform helps Government agencies, ISVs and commercial customers reduce security risks, automate compliance processes and maintain secure IT environments. Carahsoft and its reseller partners look forward to working with Knox Systems to deliver modern cloud and AI technologies to the Public Sector.”
Knox Systems’ solutions are available through Carahsoft’s SEWP V contracts NNG15SC03B and NNG15SC27B, ITES-SW2 Contract W52P1J-20-D-0042, NASPO ValuePoint Master Agreement #AR2472 and OMNIA Partners Contract #R240303. For more information, contact the Carahsoft Team at (844) 445-5688 or KnoxSystems@carahsoft.com. Explore Knox Systems solutions here.
For more information about Knox Systems, visit www.knoxsystems.com.
About Knox Systems
Knox Systems operates the largest Federal managed cloud, trusted by defense and civilian agencies to run mission-critical workloads securely. Built for speed, resilience and compliance, Knox delivers FedRAMP-authorized cloud infrastructure, continuous compliance monitoring and automated remediation that enable agencies to adopt SaaS and AI with confidence.
Contact
Knox Systems
media@knoxsystems.com
About Carahsoft’s Cybersecurity Solutions Portfolio
Carahsoft's Cybersecurity solutions portfolio includes leading and emerging technology vendors who enable organizations to defend against cyber threats, manage risk and achieve compliance. Supported by dedicated Cybersecurity product specialists and an extensive ecosystem of resellers, integrators and service providers, we help organizations identify the right technology for unique environments and provide access to technology solutions through our broad portfolio of contract vehicles. The cybersecurity portfolio spans solutions for Supply Chain Risk Management, Cloud Security, Zero Trust, Network & Infrastructure, Identity & Access Management, Risk & Compliance and more, ensuring comprehensive protection for organizations' cyber ecosystems. Explore Carahsoft’s Cybersecurity Solutions for Government here.
About Carahsoft
Carahsoft Technology Corp. is The Trusted Government IT Solutions Provider, supporting Public Sector organizations across Federal, State and Local Government agencies and Education and Healthcare markets. As the Master Government Aggregator for our vendor partners, we deliver solutions for Cybersecurity, MultiCloud, DevSecOps, Artificial Intelligence, Customer Experience and Engagement, Open Source and more. Working with resellers, systems integrators and consultants, our sales and marketing teams provide industry leading IT products, services and training through hundreds of contract vehicles. Visit us at www.carahsoft.com.
Contact
Mary Lange
(703) 230-7434
PR@carahsoft.com
View source version on GlobeNewswire
Knox Systems and Carahsoft Partner to Accelerate Secure SaaS, AI Adoption Across the Public Sector
Advanced Hosting Platform Now Available to Government Agencies
Knox Systems and Carahsoft Partner to Accelerate Secure SaaS, AI Adoption Across the Public Sector
Advanced Hosting Platform Now Available to Government Agencies
January 27, 2026 - For years, federal agencies have operated under the traditional belief that IT modernization requires a choice between speed and security. However, as modernization mandates accelerate, this "speed vs. security" paradox is being dismantled.
In a recent featured article for Washington Technology, Knox Systems leadership explores how modern cloud-based solutions are now delivering both—and why the traditional barriers to FedRAMP authorization are finally coming down. With the arrival of FedRAMP 20x, the federal market is shifting toward a reality where mission outcomes are delivered in weeks, not years.
Read the Full Article on Washington Technology
Key Highlights
- The Modernization Mandate: Why federal agencies can no longer afford to let compliance bottlenecks stall critical IT updates.
- Debunking the Paradox: How cloud-native security allows for rapid deployment without compromising government-grade protection.
- FedRAMP 20x as a Catalyst: How the new program initiative is opening doors for SaaS vendors to meet growing agency demand.
- Weeks, Not Years: A look at the new standard for mission delivery and what it means for the future of government procurement.
Answering the Call for Scalable Innovation
The demand for secure, scalable innovation within the federal government has never been higher. As agencies signal a shift away from legacy systems, the primary hurdle remains the FedRAMP authorization process.
The article highlights that while FedRAMP has historically been seen as a barrier, the move toward automated, "ready-now" compliance boundaries is changing the landscape. By leveraging inheritance and engineering-driven security, SaaS vendors can now answer the government's call for innovation without the multi-year wait times of the past.
The Future of Mission-Ready Tech
The connection between agency modernization and cloud adoption is irrefutable. For SaaS providers, the message is clear: the infrastructure to support rapid, secure federal entry now exists. The goal is to move from a "compliance-first" mindset to a "mission-first" reality, where technology serves the agency's needs at the speed of the modern world.
Ready to bypass the compliance barriers and serve the public sector? Book a Demo with Knox Systems to see how we help you reach the federal cloud in record time.
Frequently Asked Questions
1. Why has FedRAMP traditionally been a barrier to modernization? Historically, the high cost and lengthy timelines (often 18–36 months) of FedRAMP authorization prevented many innovative SaaS companies from entering the federal market, leaving agencies stuck with legacy technology.
2. How does FedRAMP 20x change the speed of cloud adoption? FedRAMP 20x focuses on streamlining the flow of information and increasing the reuse of security packages, allowing agencies to grant Authorizations to Operate (ATO) much faster than previous iterations.
3. Is it possible to maintain security while increasing deployment speed? Yes. By using automated control validation and pre-authorized boundaries like those provided by Knox, vendors can ensure that every security requirement is met continuously rather than waiting for manual audits.
4. What should SaaS vendors do to prepare for this demand? Vendors should focus on "Security by Inheritance." By building on a FedRAMP-authorized platform, they can meet more than 80% of federal requirements immediately and focus their engineering efforts on their core product features.
The Irrefutable Connection Between Agency Modernization and FedRAMP Cloud Adoption
The Irrefutable Connection Between Agency Modernization and FedRAMP Cloud Adoption
