Startups in CMMC: Scaling Compliance Without Enterprise Resources

Michael Peters

6 hours ago

For startups in the defense sector, CMMC is a double-edged sword. On the one hand, working in the DIB is a massive opportunity for most startups. Conversely, the costs and complexity of compliance can overwhelm lean teams with limited resources. This is why startups increasingly turn to CSPs and MSPs to achieve CMMC compliance without the overhead of enterprise-scale investments. Here’s how they’re doing it.

Why Startups Can’t Afford to Ignore CMMC

The CMMC framework protects sensitive defense data, specifically CUI. For startups, even early-stage companies building hardware and software for defense will likely run up against CMMC requirements.

The most basic tier, Level 1 certification, requires 17 foundational practices, such as antivirus deployment and access controls. Level 2, mandatory for handling CUI, demands 110 controls aligned with NIST SP 800-171, including encryption, incident response, and continuous monitoring.

Thus, the issue. Startups are locked out of DoD contracts without certification. However, building in-house compliant systems is a resource drain. Enter CSPs and MSPs—partners that let startups “rent” compliance infrastructure and expertise instead of building it from scratch.

Startups’ Compliance Hurdles: Budgets, Expertise, and Complexity

Startups face three core challenges:

Cost: Hiring compliance experts or investing in on-premises security tools can consume 20–30% of a startup’s operational budget.
Knowledge Gaps: CMMC’s 17 domains—from asset management to risk assessment—require niche expertise most startups don’t have.
Dynamic Requirements: CMMC has been set as policy, but that doesn’t mean it or the underlying controls will remain the same. Startups lack the bandwidth to track policy updates while scaling their products.

Cloud Service Providers: The Compliance Infrastructure Lifeline

Cloud platforms are game-changers. CSPs offer preconfigured environments that meet DoD’s strictest standards, including FedRAMP High and Impact Level 3 authorizations. By migrating to these platforms, startups inherit compliant infrastructure without reinventing the wheel.

For example:

Encryption is a key CMMC Level 2 requirement. CSPs automatically encrypt data at rest and in transit, instantly checking that box.
Multi-factor authentication (MFA) for system access is a common CMMC requirement. CSPs bake it into their Identity and Access Management (IAM) tools.
Audit logging—a tedious but mandatory control—is automated through services offered by cloud providers like Google, Microsoft, or AWS.

The shared responsibility model is critical. CSPs manage the physical security of data centers, network hardening, and hypervisor protections, while startups focus on the fundamental tasks, services, and technologies they provide clients. For example, a secure enclave startup can isolate CUI in a dedicated environment, meeting 70% of Level 2 controls through the CSP’s built-in safeguards.

For startups navigating the labyrinth of CMMC requirements, Managed Service Providers are more than vendors—they’re strategic allies. While Cloud Service Providers (CSPs) lay the technical groundwork, MSPs fill the expertise void, offering tailored guidance to ensure startups meet CMMC standards and sustain compliance as they grow. Here’s how MSPs are reshaping the compliance journey for resource-constrained defense startups.

MSPs Are Also Critical to Startup Success

CMMC isn’t a “set it and forget it” certification. It demands continuous monitoring, documentation, and adaptation to evolving threats—tasks that stretch thin startup teams. MSPs specializing in CMMC are an extension of a startup’s workforce, providing the institutional knowledge and tools needed to navigate audits, mitigate risks, and embed cybersecurity into company culture.

MSPs help startups with their CMMC compliance journey through several core services:

Gap Analysis and Roadmapping: Startups must find gaps before they can fix them. MSPs conduct thorough assessments, mapping existing security practices against CMMC’s requirements. For example, an MSP might discover that a startup’s incident response plan lacks formalized roles—a common oversight—and prioritize remediating it.
Policy Development and Documentation: CMMC auditors scrutinize documentation, including System Security Plans (SSPs), Plans of Action and Milestones (POA&Ms), and risk assessments. MSPs draft these artifacts, ensuring they align with DoD expectations. They also maintain version control as policies evolve, a task that often overwhelms startups.
Continuous Monitoring and Incident Response: CMMC Level 2 requires real-time threat detection and response. MSPs deploy Security Information and Event Management (SIEM) tools, monitor logs 24/7, and automate alerts for suspicious activity. For instance, if an unauthorized user attempts to access CUI, the MSP’s team investigates and contains the threat within minutes.
Staff Training and Awareness: Human error remains a top cybersecurity risk. MSPs deliver CMMC-mandated training programs, teaching employees to identify phishing attempts, handle CUI securely, and follow incident reporting protocols. Some even simulate phishing attacks to test readiness.
Audit Preparation and Support: MSPs demystify the audit process. They conduct mock assessments, compile evidence (access logs and training records), and represent startups during official audits.

Best Practices: Building a Compliance Roadmap That Scales

For startups, the path to CMMC compliance hinges on three strategies:

Start Early, Prioritize Ruthlessly: Conduct a gap analysis immediately. Use the DoD’s SPRS scorecard to identify high-risk areas like access control and incident response. Tackle these first, as they’re standard audit sticking points.
Embrace Compliance-as-Code: Automate controls using CSP tools. For instance, AWS Config Rules can enforce encryption standards, while Azure Policy auto-remediates misconfigured resources. This reduces human error and frees engineers to focus on innovation.
Partner with Certified Experts: Choose CSPs and MSPs with proven DoD experience. Look for FedRAMP High authorization or IL5 compliance badges. Avoid generic IT firms—CMMC’s nuances require specialized knowledge.
From Compliance to Competitive Edge: CMMC compliance isn’t just a hoop to jump through—it’s a strategic asset. Startups that certify early gain a reputation as secure, reliable partners in the defense ecosystem. Prime contractors often prioritize certified vendors, and the DoD increasingly mandates CMMC for subcontractors.

The infrastructure built for CMMC—cloud environments, automated monitoring, and trained teams—doubles as a cybersecurity foundation for future growth.

Startups can Scale Their CMMC Approach with Lazarus Alliance

For startups in the defense space, CMMC compliance is a marathon, not a sprint. By leveraging CSPs and MSPs, they can navigate the journey without enterprise-level resources. The cloud provides the technical backbone; managed services offer the expertise. Together, they transform compliance from a barrier into a catalyst—helping startups win contracts, build trust, and scale securely in a high-stakes industry.

CMMC compliance is not merely a contractual obligation; it’s an opportunity to strengthen your organization’s cybersecurity and position it as a trusted partner in the defense industry. Trust Lazarus Alliance to be a partner that helps you achieve and maintain compliance.

To learn more about how Lazarus Alliance can help, contact us.

[wpforms id=”137574″]