What do Canadian security companies need to sell in the US?
Moving south raises the proof bar. US enterprise buyers expect formal assurance, public companies face disclosure rules that shape their questions, and every level of government has its own framework. This page sorts what matters by segment so a Canadian security company can choose where to start.
What do Canadian security companies need to sell in the US?
It depends on the buyer. Commercial enterprises usually ask for a SOC 2 report and a clear incident response story; federal agencies buying cloud services expect FedRAMP authorization; many states and local governments use GovRAMP; and defence suppliers handling federal contract information or controlled unclassified information need CMMC.
Add a US presence buyers can see: US references, pricing in US dollars, support hours that cover US time zones, and events and analyst coverage that US buyers recognise. The general method for any Canadian company is in the guide to selling to US customers.
What do US enterprise buyers ask for first?
ShoutEx view: SOC 2 is the most common assurance request from US enterprise buyers, often before a deal reaches procurement. If you do not have a report yet, say when you expect it and what the scope will be. The difference between Type 1 and Type 2 and how to present them is on trust signals.
Public company buyers have a further reason to probe. Under the SEC's 2023 cybersecurity disclosure rules, a material cybersecurity incident must generally be disclosed on Form 8-K under Item 1.05 within four business days of the company determining it is material. Regulation S-K Item 106 requires annual 10-K disclosure of cybersecurity risk management, strategy and governance, for fiscal years ending on or after December 15, 2023. Foreign private issuers use Forms 6-K and 20-F.
That shapes what US public company buyers need from vendors: fast, factual incident information they can use to assess materiality, and clear notification terms. Products and services that help with evidence gathering, timelines and board reporting have a real story to tell, as long as you avoid implying you decide materiality for them.
Do you need FedRAMP to sell to US federal agencies?
To sell cloud services to US federal agencies, generally yes. FedRAMP 20x is the program's newer approach. Phase 1, a Low pilot, ran from April to September 2025 with 26 submissions. Phase 2, a Moderate pilot, ran from November 18, 2025 to March 2026, with the first pilot authorizations on March 6, 2026. Phase 3 is active, with certification Classes A (Pilot), B (Low) and C (Moderate); a Class D (High) pilot is planned for FY27.
FedRAMP will stop accepting new Rev5 certifications on June 11, 2027, and it has published a 2026 timeline with further milestones. ShoutEx view: for a Canadian vendor, FedRAMP is a multi-year investment that makes sense only with a federal sponsor or a clear pipeline. Until then, market to commercial buyers and to the integrators that serve federal agencies.
What do US state and local governments ask for?
Many state and local governments use GovRAMP, the name StateRAMP announced in February 2025 (its legal name remains StateRAMP). It is a 501(c)(6) nonprofit that offers standardized cloud security verification for state and local governments.
For a Canadian vendor, state and local work often starts with one agency that already knows you, perhaps through a partner or a Canadian public sector reference. Experience from selling to Canadian governments translates well: bid libraries, capability statements and past performance write-ups follow the same logic.
One segment, one proof standard, one year.
A Canadian vendor that picks a single US segment and gets its proof in order usually wins sooner than one that announces plans for enterprise, federal and state markets at once.
What do CMMC and the DFARS rule mean for Canadian suppliers?
If you supply the US Department of Defense supply chain and handle federal contract information (FCI) or controlled unclassified information (CUI) on your own systems, CMMC applies. The CMMC program rule (32 CFR part 170, effective December 16, 2024) sets three levels:
- Level 1: self-assessment of the 15 FAR 52.204-21 requirements, for FCI.
- Level 2: self-assessment or third-party (C3PAO) assessment of the 110 NIST SP 800-171 R2 requirements, for CUI.
- Level 3: DIBCAC assessment of 24 NIST SP 800-172 requirements.
- Rollout: four phases over three years, each starting one year after the previous one.
The DFARS rule, effective November 10, 2025, started Phase 1 and a three-year phase-in during which CMMC requirements are applied at program managers' discretion (not for awards of commercial off-the-shelf items only). That puts Phase 2 at about November 10, 2026. Canadian defence suppliers may also face CPCSC at home, and compliance firms can serve both; see compliance and vCISO marketing.
How should you sequence US expansion by segment?
Compare the segments side by side, then pick the one where you already have proof and contacts.
| Segment | Proof buyers usually expect | Typical first step | ShoutEx view on timing |
|---|---|---|---|
| Enterprise and mid-market | SOC 2 report, clear incident notification terms | US references, SOC 2 Type 2 | First for most vendors |
| US public companies | Fast incident facts for SEC materiality decisions | Incident and notification documentation | Alongside enterprise |
| Federal agencies (cloud) | FedRAMP authorization at the right class | Find a sponsor or integrator partner | Only with a clear pipeline |
| State and local government | GovRAMP verification | One agency through a partner | After enterprise traction |
| Defence supply chain | CMMC level matching FCI or CUI handling | Assess which level applies | When contracts require it |
Visibility helps in every segment. US buyers meet vendors at conferences such as RSAC, covered on security events, and many shortlist from analyst research, covered on analyst relations.
Mistakes to avoid
- Listing frameworks you are "working towards" in a way that reads like certification.
- Starting FedRAMP without a sponsor or a federal pipeline.
- Pricing only in Canadian dollars, or showing US prices that leave out mandatory fees.
- Offering support hours that end before the US West Coast workday does.
What should you measure during US expansion?
Track whether US buyers progress through the same stages as Canadian ones, and where proof gaps slow them.
| Measure | What it shows | Where it lives |
|---|---|---|
| US qualified opportunities by segment | Whether the chosen segment responds | CRM, country and segment fields |
| Security review pass rate, US vs Canada | Whether your assurance meets US expectations | Deal notes |
| Deals lost for missing certification | Which framework to pursue next | Closed-lost reasons |
| US references available | Proof for the next deal | Customer marketing list |
| Sales cycle, US vs Canada | Where the US process adds time | CRM stage dates |
This is general information, not legal advice; check with counsel.
Frequently asked questions
Do US buyers require SOC 2?
Not by law, but in ShoutEx's view SOC 2 is the most common assurance request from US enterprise buyers. If you are working towards one, say so plainly and give the expected scope and date.
Why do US public companies ask detailed incident questions?
SEC rules generally require a material cybersecurity incident to be disclosed on Form 8-K within four business days of the company determining it is material, so they need fast, factual information from vendors.
What is FedRAMP 20x?
FedRAMP's newer authorization approach, with pilots in 2025 and 2026 and certification classes A (Pilot), B (Low) and C (Moderate), plus a planned Class D (High) pilot in FY27.
When does FedRAMP stop accepting Rev5 certifications?
FedRAMP says it will stop accepting new Rev5 certifications on June 11, 2027.
What is GovRAMP?
The name StateRAMP announced in February 2025. It is a nonprofit offering standardized cloud security verification for state and local governments; its legal name remains StateRAMP.
Does CMMC apply to Canadian companies?
It applies to suppliers in the US defence supply chain that process, store or transmit FCI or CUI on their own systems, wherever they are based, when a contract requires it.
When does CMMC Phase 2 start?
The DFARS rule started Phase 1 on November 10, 2025, and each phase starts one year after the previous, so Phase 2 begins about November 10, 2026.
Should we pursue FedRAMP early?
Usually not without a federal sponsor or a clear pipeline. It is a large investment; most Canadian vendors start with US enterprise buyers.
Is this legal advice?
No. This is general information, not legal advice; check with counsel and each program's own site.
Sources & further reading
Regulations, platform policies and market data change. These sources let you check the facts on this page, last checked October 7, 2026.