News, Trends, and Insights for IT & Managed Services Providers
News, Trends, and Insights for IT & Managed Services Providers
Business of Tech | CMMC 2.0 Final Rule Released: Implications for Defense Contractors and MSPs

Another big story I didn’t want to miss from the closeout of 2023 was the release of the final rule set for CMMC 2.0.

CMMC 2.0, the Cybersecurity Maturity Model Certification version, will consolidate maturity levels, align with NIST frameworks, and allow for flexible contractor security assessments. It aims to address the increasing cyberattacks on the Pentagon’s supply chain and improve the protection of sensitive information. Contractors that fail to meet CMMC 2.0 requirements will not be awarded DOD contracts.

The Defense Department has released a proposed rule outlining a four-phase approach to implement the Cybersecurity Maturity Model Certification (CMMC) program. The rule establishes requirements for assessing defense contractors’ implementation of security protections and aims to ensure compliance through independent third-party assessors certified by the DoD. The phased implementation plan will gradually introduce CMMC requirements, with full implementation expected by October 1, 2026. The proposed rule also introduces affirmation requirements and allows for conditional self-assessments and certifications through Plans of Action and Milestones (POA&Ms).

I also spotted an expert on Reddit offering insights.  

The CMMC final rule has been submitted to the Federal Register, and several requirements need to be prepared for, including the need for external service providers to have their final assessment certification before the OSC they’re supporting can achieve their own certification. Additionally, tools should be FEDRAMP moderate certified, there will be effectively no POAMS, and the estimated cost of the C3PAO assessment process alone is around $35k. The DoD admits they’re roughly 70% compliant with the rule they demand others to follow.  The post stresses the importance of understanding NIST 800-171 and the implications of FedRAMP Moderate equivalency.

Why do we care?

I’ll observe for those not doing DoD work, this is a useful framework, although pretty stringent.   

MSP tools being FEDRAMP certified is a big deal.    We’re either going to see a move by vendors to get FEDRAMP certified, or a fracturing of the toolkits.     I’m predicting that MSPs will go either in or out when it comes to DoD, in a serious way. 

For MSPs serving the defense sector or considering entering this market, understanding the CMMC 2.0 framework is crucial. It may lead to increased demand for MSPs offering cybersecurity services and support to defense contractors striving for compliance. The rule’s phased implementation and certification process provide MSPs with a timeline to adapt and prepare their services to meet the evolving compliance needs of defense clients.

Choose your upgrade:

Get the full benefits of Business of Tech Plus

Insider Access

$12/month

Perfect for MSPs and ITSPs that want full interviews, early access, and ad-free listening

  • Programmatic Ad-free private podcast feedSame show, little interruptions
  • Channel Chatter previews1–2 topics with light insights
  • Early access to interview episodesHear it days before public release
  • Monthly Insider BriefTighter analysis you can share internally
  • Extra audio segmentsCut interviews, behind-the-scenes commentary, quick competitive notes
  • Become an Insider for $12/month

    Leadership Access

    $149/month

    Perfect for MSPs and Vendors that run a team and need the extended tactics, executive summaries, and weekly alignment brief

  • All Insider Access benefits plus . . .
  • Invite your teamIncludes access for 5 team members with option to add more
  • Vendor Strategy BriefsThe entire library, plus new analysis every month
  • Channel ChatterAll topics, full insights, complete vendor discussion + sentiment list
  • Quarterly State of the Channel Briefing
  • Monthly AMA submission priorityAsk Dave direct questions, and skip the line
  • Get the Leadership Edge for $149/month

    Vendor Partner

    $500/month

    Perfect for channel companies or vendors looking to deepen their engagement with the show.

  • All Leadership Access benefits plus . . .
  • Get highlighted as a show sponsor You'll get placement in the show notes, throughout the website, and on our dedicated sponsors page.
  • Enjoy regular shout outs You'll be featured in a rotating format during the show
  • Become a show sponsor for $500/month

    Search all stories