Pega Attains FedRAMP High Authority to Operate Status For US Federal Government Clients

Rhea-AI Summary

Pegasystems (NASDAQ: PEGA) has achieved FedRAMP High Authority to Operate (ATO) status, marking a significant milestone for its cloud services security compliance. This certification enables U.S. federal agencies to migrate their sensitive data and on-premise Pega solutions to Pega Cloud for Government.

The FedRAMP High ATO certification involved a comprehensive assessment of hundreds of security controls based on NIST standards. Powered by AWS GovCloud, Pega Cloud for Government offers workflow automation tools and operational support, helping government agencies modernize applications while maintaining compliance with critical standards.

This cloud solution is designed to connect data across operational silos, streamline organizational complexity, and enhance customer service, while providing the flexibility to scale according to new requirements.

Positive

• Achieved FedRAMP High ATO certification, enabling access to sensitive government IT projects
• Expands market opportunities in the federal government sector
• Partnership with AWS GovCloud enhances service offering credibility

Negative

• None.

Insights

Government Technology Analyst

Pegasystems' achievement of FedRAMP High Authority to Operate (ATO) status represents a significant competitive advantage in the federal government market. This certification is not merely a compliance checkbox but a strategic enabler for Pega's government business growth.

The FedRAMP High designation addresses a critical barrier that has prevented many agencies from migrating sensitive workloads to cloud environments. By meeting the rigorous security controls required for high-impact federal data, Pega has positioned itself to capture migration opportunities from current on-premise government clients while expanding its addressable market to agencies handling classified and sensitive information.

Most valuable to Pega's business model is how this certification facilitates the transition of existing government customers from perpetual licenses to the Pega Cloud for Government subscription model, potentially improving revenue predictability and increasing lifetime customer value. Government agencies increasingly seek cloud solutions that offer scalability and continuous updates while maintaining stringent security standards.

The AWS GovCloud foundation provides Pega with infrastructure credibility essential for mission-critical government applications. This partnership combines Amazon's compliant infrastructure with Pega's workflow automation capabilities, creating a compelling solution for agencies tackling digital transformation initiatives that involve sensitive data.

While the certification itself doesn't guarantee contract wins, it removes a significant obstacle in Pega's government sales process and strengthens its competitive position against other enterprise software providers pursuing federal contracts.

Enterprise Software Financial Analyst

Pega's FedRAMP High ATO status unlocks a substantial revenue expansion opportunity in the federal sector, which represents one of the most stable and lucrative customer segments in enterprise software. This certification enables two key revenue accelerators: migration of existing government clients to cloud services and expansion of Pega's addressable market to include agencies with stringent security requirements.

The business impact extends beyond just new sales opportunities. By facilitating migration from on-premise deployments to Pega Cloud for Government, the company can potentially convert traditional license revenue into more valuable recurring subscription revenue. This aligns with Pega's broader strategic transition toward a cloud-first business model that investors have rewarded in similar enterprise software companies.

The timing is opportune as federal agencies continue to receive funding for modernization initiatives, with secure cloud migration being a priority across government IT departments. Pega's investment in achieving this certification demonstrates commitment to a sector where relationships and compliance credentials create significant barriers to entry for competitors.

While government sales cycles remain lengthy, this certification streamlines procurement processes by eliminating security assessment hurdles that typically delay government technology projects. The AWS GovCloud foundation also reduces implementation complexity by leveraging pre-approved infrastructure.

This development strengthens Pega's portfolio diversification strategy, balancing its commercial sector exposure with enhanced positioning in the more recession-resistant government sector, potentially improving overall revenue stability.

New designation enables clients to quickly migrate to Pega Cloud for Government for sensitive government IT projects

WALTHAM, Mass.--(BUSINESS WIRE)-- Pegasystems Inc. (NASDAQ: PEGA), The Enterprise Transformation Company™, today announced it has attained FedRAMP^® High Authority to Operate (ATO) status. This designation assures current and future clients that Pega Cloud® for Government fully meets the stringent cloud compliance standards of the U.S. federal government. Now government agencies can quickly migrate their Pega on-premise solutions with their most sensitive data to the cloud.

Many government IT organizations are deploying their infrastructure on the cloud to ensure their software is scalable, reliable, and easily updateable with the latest versions and patches. Moving to the cloud allows agencies to focus on innovation and leverage the latest software capabilities to deliver on their missions. But most of all, their cloud environment of choice must be highly secure so they can thwart the constant cyberattacks from bad actors and protect their data. FedRAMP High ATO status validates that Pega Cloud for Government can help mitigate the unique risks associated with cloud computing environments and the sensitive nature of high-impact federal data.

Following the FedRAMP High In-Process designation reached last year, Pega has now fully completed the rigorous FedRAMP High ATO certification process that thoroughly measures the security capabilities of cloud services used by federal agencies. Pega Cloud for Government was assessed across hundreds of security controls rooted in NIST for security and risk management vulnerabilities.

Pega Cloud for Government is a fully managed cloud offering that provides the workflow automation tools, environments, and operational support that empower government agencies to modernize applications and drive efficiencies. It connects data and systems across operational silos, helping streamline organizational complexity while improving customer service. 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 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/government.

Quotes & Commentary

“Many U.S. federal and state governments have partnered with Pega to support their most mission critical IT projects,” said Jen Pratt, general manager, US government, Pega. “Achieving FedRAMP High Authority to Operate demonstrates our continued commitment to help government agencies realize what’s possible with their digital transformation projects.”

Supporting Resources

• Product datasheet: Pega Cloud for Government
• Overview: Pega for Government
• Solution background: Pega GenAI Blueprint

About Pegasystems

Pega is The Enterprise Transformation Company that helps organizations Build for Change® with enterprise AI decisioning and workflow automation. Many of the world’s most influential businesses rely on our platform to solve their most pressing 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 Pega (NASDAQ: PEGA), 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/20250319925026/en/

Press Contact:

Sean Audet

Pegasystems

sean.audet@pega.com

Source: Pegasystems Inc.

FAQ

What does FedRAMP High ATO status mean for PEGA's government clients?

It allows federal agencies to securely migrate sensitive data to Pega Cloud for Government, ensuring compliance with strict government security standards.

How does Pega Cloud for Government enhance federal agency operations?

It provides workflow automation tools, connects data across silos, and helps modernize applications while maintaining compliance with government standards.

What security standards does PEGA's FedRAMP High certification cover?

The certification involves assessment across hundreds of NIST-based security controls for cloud computing environments and high-impact federal data protection.

What technology infrastructure powers PEGA's government cloud solution?

Pega Cloud for Government is powered by AWS GovCloud, enabling highly sensitive government workloads with enhanced security capabilities.