The CMMC & Cloud Storage Blind Spots You Shouldn’t Ignore
For many small defense contractors, the biggest cybersecurity risk isn’t a hacker; it’s accidentally storing government data in the wrong cloud system, and the consequences are far more serious than most entrepreneurs realize.
According to the official CMMC guidance (E-Q1, E-Q2), any cloud provider storing CUI must meet FedRAMP Moderate or an equivalent security baseline.
That means popular tools like:
- Google Drive
- Dropbox
- iCloud
- OneDrive (commercial version)
- International cloud file-sharing apps
They are not approved for storing CUI; even if the files are encrypted.
Why This Mistake Happens (And Why Small Teams Are at Risk)
Accidentally saving Controlled Unclassified Information (CUI) in a non-compliant cloud platform is more than a simple oversight. It can put your contract eligibility at risk, trigger penalties, and expose your business to data breaches you never saw coming. The danger isn’t intentional misuse; it’s the blind spots that small teams don’t even realize exist.
Small businesses usually run lean. They pick tools that are:
- Simple
- Affordable
- Easy to use
- Already part of the team’s workflow
So, when a prime contractor sends engineering drawings, CAD files, performance specs, or test data, the instinct is to save it in whatever cloud storage you’ve always used.
But the moment that file hits Google Drive or Dropbox, your company becomes non-compliant with DFARS 252.204-7012, which requires CUI to be stored only in approved environments like GCC High or FedRAMP Moderate clouds.
Why Even Encrypted Files Still Break the Rules
Entrepreneurs often say:
Unfortunately, no.
The CMMC FAQ states clearly that CUI may only be stored in cloud environments that meet the FedRAMP Moderate baseline, regardless of encryption. If the cloud provider itself isn’t approved, encrypted CUI stored there is still considered a violation. This surprises almost every small contractor, and it’s why so many fail before they even reach the documentation stage.
Real-World Impact: A Simple Mistake with Big Consequences
Here’s what happens when a small team uses the wrong cloud:
Prime contractors ask where you store CUI.
If your answer is “Google Drive,” you’re already disqualified.
Assessors request evidence of cloud compliance.
Without FedRAMP documentation, the assessment stops
SPRS score becomes invalid.
“No Score” or “Not Met” status blocks contract eligibility.
Opportunity lost.
Not because of weak security, but because the cloud storage was noncompliant.
For a 1–10 person shop, this can mean losing a five- or six-figure subcontract over a simple misunderstanding.
What Small Contractors Should Use Instead
To stay compliant, small contractors need a cloud platform designed to handle CUI:
- Microsoft GCC High
- Microsoft GCC (depending on contract requirements)
- FedRAMP Moderate or High–authorized cloud providers
- A compliant enclave managed by a trusted MSSP
The key is proof:
Your cloud provider must document its compliance so you can show it to auditors and primes. If you cannot produce that documentation, the cloud environment is not compliant, even if it is secure.
The CSS Solution: A Compliant Cloud Without the Complexity
Most small teams don’t have the time or budget to configure FedRAMP environments. That’s where CSS steps in.
We set up a fully compliant enclave that includes:
- FedRAMP-approved cloud storage
- Secure file-sharing for CUI
- Controlled access for employees
- Logging and monitoring
- Compliance documentation
- Evidence bundles for assessments
You get a simple, user-friendly system that protects CUI correctly, without dealing with the technical or regulatory complexity.
Transparent CMMC Pricing That Fits Your Level
At Cyber Security Solutions (CSS), we help contractors meet exactly the level that applies; no upsells, no inflated packages, no jargon.
Our pricing is fully transparent and scales with your team size and compliance scope:
Startup Plan — $200 / month / device (Level 1)
For small businesses handling only FCI. Secure foundation for small teams getting started with compliance and endpoint protection.
Startup Plan — $250 / month / device (Level 2)
For small businesses handling CUI. Secure foundation for small teams getting started with compliance and endpoint protection.
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