Pega Achieves In Process Status for FedRAMP’s Highest Security Level for Cloud Services

Rhea-AI Summary

Pegasystems Inc. (NASDAQ: PEGA) has achieved FedRAMP® High Ready compliance and In Process status with the Department of Veterans Affairs for its Pega Cloud® for Government solution. This milestone advances Pega's federal agency capabilities, meeting the highest security standards required by the U.S. government for cloud services. FedRAMP High, the most rigorous standard, assesses IT solutions across hundreds of security controls based on NIST guidelines.

Pega Cloud for Government, powered by AWS GovCloud, offers tools and operational support for government agencies to develop applications optimized for their workloads. It helps streamline organizational complexity and improve operational efficiency while maintaining compliance with critical government standards. This achievement underscores Pega's commitment to providing secure, efficient, and compliant solutions for federal agencies' digital transformation initiatives.

Positive

• Achieved FedRAMP High Ready compliance and In Process status for Pega Cloud for Government
• Meets the highest security standards required by the U.S. government for cloud services
• Enhances Pega's capabilities to serve federal agencies' IT projects
• Pega Cloud for Government offers tools and support for government-optimized applications
• Solution helps streamline organizational complexity and improve operational efficiency

Negative

• None.

Insights

Tech Expert

Pegasystems' achievement of FedRAMP High Ready compliance and In Process status for its Pega Cloud for Government solution is a significant milestone in the company's federal agency capabilities. This development has several important implications:

• Enhanced Security: FedRAMP High is the most stringent security standard for cloud services used by federal agencies. Achieving this status demonstrates Pega's commitment to robust security measures, which is important in an era of increasing cyber threats.
• Market Expansion: This certification opens doors for Pega to compete for high-security government contracts, potentially expanding its market share in the federal sector.
• Competitive Advantage: Few cloud providers achieve FedRAMP High status, giving Pega a significant edge over competitors in the government IT solutions space.
• Trust and Credibility: The FedRAMP High designation enhances Pega's credibility among federal agencies, potentially leading to increased adoption of its services.

From an investor's perspective, this development could translate to increased revenue opportunities in the lucrative government sector. However, it's important to note that the government sales cycle is typically long and the impact on financials may not be immediate.

Financial Analyst

The achievement of FedRAMP High Ready status by Pegasystems is a positive development from a financial standpoint. Here's why:

• Market Expansion: The federal government IT market is substantial, with annual spending exceeding $90 billion. This certification allows Pega to tap into a larger portion of this market.
• Revenue Growth Potential: Government contracts tend to be long-term and high-value. Securing even a few major federal contracts could significantly boost Pega's revenue.
• Competitive Positioning: This certification differentiates Pega from competitors, potentially leading to higher win rates in government bids and justifying premium pricing.
• Recurring Revenue: Government cloud services often translate to stable, recurring revenue streams, which are highly valued by investors.

However, investors should be aware that government sales cycles are lengthy, often taking 12-18 months or more. The financial impact of this certification may not be immediately reflected in quarterly results. Additionally, while this development is positive, it's important to consider it in the context of Pega's overall financial health, market position and growth strategy.

Pega Cloud for Government designated Ready for FedRAMP High for use in the U.S. Federal Government’s most sensitive IT projects

CAMBRIDGE, Mass.--(BUSINESS WIRE)-- Pegasystems Inc. (NASDAQ: PEGA), the leading enterprise AI decisioning and workflow automation platform, today announced its latest milestone in advancing its federal agency capabilities by achieving FedRAMP^® High Ready compliance and In Process status with the Department of Veterans Affairs for its Pega Cloud® for Government solution.

With data breaches and malicious hacking on the rise, the federal government requires its cloud providers to uphold strict security standards to protect the data held by its agencies. The FedRAMP program provides a standardized approach to assessing the security capabilities of cloud services used by federal agencies. These controls are a subset of the National Institute of Standards and Technology (NIST) SP 800-53 controls that are tailored and augmented to address the unique risks associated with cloud computing environments and the sensitive nature of high-impact federal data.

FedRAMP High, FedRAMP’s most rigorous standard, assesses IT solutions across hundreds of security controls rooted in NIST for security and risk management vulnerabilities. This designation represents a significant commitment to delivering secure, efficient, and compliant solutions tailored to the needs of federal agencies. Pega’s pursuit of FedRAMP High underscores its dedication to meeting the unique requirements and challenges faced by federal agencies and providing them with the confidence to securely embrace digital transformation initiatives.

Pega Cloud for Government is a fully managed cloud offering that provides the tools, environments, and operational support that empower government agencies to develop applications optimized for government workloads. It connects data and systems across operational silos, helping streamline organizational complexity while improving operational efficiency. The solution offers government agencies the flexibility to scale to meet new requirements while maintaining compliance with critical government standards. Powered by AWS GovCloud, Pega Cloud for Government can run highly sensitive government workloads with the hardened security and production-grade capabilities that government agencies require.

Pega currently works with some of the largest government agencies in the world to help them achieve their modernization goals and transform their digital experiences. For more information, visit www.pega.com/industries/government.

Learn more at Government Empowered 2024, the company’s annual government conference on October 16 in Washington, DC, and hear success stories from government clients around the world. For more information, visit https://www.pega.com/GovEmpowered.

Quotes & Commentary

“Pega has long been trusted by U.S. federal and state governments to leverage our technology as part of their most significant IT projects,” said Jen Pratt, General Manager, US government, Pega. “Our FedRAMP High designation further assures these agencies that their digital transformation projects comply with the government’s highest standards for security and risk assessment regulations.”

Supporting Resources

• Product datasheet: Pega Cloud for Government
• Background: Pega for Government
• Security background: Pega Trust Center

About Pegasystems

Pega provides a powerful platform that empowers the world’s leading organizations to unlock business-transforming outcomes with real-time optimization. Clients use our enterprise AI decisioning and workflow automation to solve their most pressing business challenges – from personalizing engagement to automating service to streamlining operations. Since 1983, we’ve built our scalable and flexible architecture to help enterprises meet today’s customer demands while continuously transforming for tomorrow. For more information on how Pega empowers its clients to Build for Change®, visit www.pega.com.

All trademarks are the property of their respective owners.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240725459982/en/

Sean Audet

Pegasystems

sean.audet@pega.com

Twitter: @pega

Source: Pegasystems Inc.

FAQ

What is the significance of Pega (PEGA) achieving FedRAMP High Ready status?

Pega (PEGA) achieving FedRAMP High Ready status signifies that its Pega Cloud for Government solution meets the highest security standards required by the U.S. government for cloud services. This allows Pega to serve federal agencies in their most sensitive IT projects and supports their digital transformation initiatives.

How does Pega Cloud for Government benefit federal agencies?

Pega Cloud for Government benefits federal agencies by providing tools and operational support to develop applications optimized for government workloads. It helps streamline organizational complexity, improves operational efficiency, and maintains compliance with critical government standards while offering the flexibility to scale to meet new requirements.

What security standards does FedRAMP High assess for cloud services like PEGA's?

FedRAMP High, the most rigorous standard, assesses IT solutions like PEGA's across hundreds of security controls. These are based on the National Institute of Standards and Technology (NIST) SP 800-53 controls, tailored to address unique risks associated with cloud computing environments and high-impact federal data.

When did Pega (PEGA) announce its FedRAMP High Ready compliance achievement?

Pega (PEGA) announced its achievement of FedRAMP High Ready compliance and In Process status with the Department of Veterans Affairs on the date of this press release. The exact date is not specified in the given information.