FedRAMP vs SOC 2: Which Compliance Framework Do You Need?

Q: What is the difference between FedRAMP and SOC 2, and which one do I need?

TL;DR: FedRAMP is required for selling to federal agencies (12-18 months, $250K-$500K), while SOC 2 targets commercial enterprises (3-6 months, $50K-$150K). Many companies pursue SOC 2 first, then FedRAMP. There is significant overlap between the frameworks.

admin@fedrampgpt.com • December 14, 2025 • 8 min read • 110 views

Understanding the Difference

Both FedRAMP and SOC 2 are critical compliance frameworks for cloud service providers, but they serve different purposes and markets.

FedRAMP Overview

Purpose: Required for selling cloud services to U.S. federal agencies

Based on: NIST 800-53 security controls

Levels: Low (125 controls), Moderate (325 controls), High (421 controls)

Audit: Third-Party Assessment Organization (3PAO)

SOC 2 Overview

Purpose: Demonstrates security practices to commercial customers

Based on: AICPA Trust Services Criteria

Types: Type I (point in time), Type II (3-12 month period)

Audit: Licensed CPA firm

Key Differences

Aspect	FedRAMP	SOC 2
Target Market	Federal government	Commercial enterprises
Mandatory	Yes (for gov contracts)	No (but highly valued)
Cost	$250K-$500K+	$50K-$150K
Timeline	12-18 months	3-6 months
Public Report	Yes (marketplace listing)	No (share with customers)

Which One Do You Need?

Choose FedRAMP If:

You want to sell to federal agencies
You have federal customers or prospects
You need to meet government security requirements

Choose SOC 2 If:

Your customers are commercial enterprises
You need to demonstrate security practices
You're not targeting government contracts

Get Both If:

You serve both commercial and federal markets
You want comprehensive security validation
Many companies pursue SOC 2 first, then FedRAMP

Overlap and Synergies

Good news: There's significant overlap between FedRAMP and SOC 2. Many controls and evidence requirements are similar:

Access controls and authentication
Encryption requirements
Incident response procedures
Change management
Backup and disaster recovery

With FedRampGPT, you can manage both compliance frameworks from a single platform, reusing evidence and documentation.

Making the Decision

Start by asking:

Who are your target customers?
What compliance do they require?
What's your budget and timeline?
Do you have government contract opportunities?

Next Steps

Not sure which path to take? Schedule a consultation with our compliance experts.

Frequently Asked Questions

Can I use SOC 2 evidence for FedRAMP?

Yes, there is significant overlap between SOC 2 and FedRAMP controls. Many companies pursue SOC 2 first, then reuse evidence and documentation for FedRAMP, which can cut 3-6 months off the FedRAMP timeline.

Do I need both FedRAMP and SOC 2?

You need FedRAMP if you want to sell to federal agencies. You need SOC 2 for commercial enterprises. If you serve both markets, you should pursue both, but many companies start with SOC 2 as a foundation.

Which is more expensive: FedRAMP or SOC 2?

FedRAMP is significantly more expensive ($250K-$500K) compared to SOC 2 ($50K-$150K). FedRAMP also takes much longer (12-18 months vs 3-6 months for SOC 2).

Can I get FedRAMP authorization faster if I already have SOC 2?

Yes! Having SOC 2 can cut 3-6 months off your FedRAMP timeline because you've already built compliance processes, documented controls, collected evidence, and worked with auditors. The frameworks have significant overlap.