Boosting Cybersecurity with Exostar’s Managed Microsoft 365: A Deep Dive

What’s Been Updated in this Blog?

This blog has been updated to reflect the CMMC Final Rule (32 CFR Part 170) and the enforcement milestone that began November 10, 2025. Contractors handling CUI must now demonstrate compliance at contract award, and organizations using GCC High must ensure documentation, evidence, and system governance align with active Level 2 assessment requirements. All forward-looking CMMC references have been updated to reflect current enforcement.

Organizations supporting the U.S. Department of Defense (DoD) are required to protect Controlled Unclassified Information (CUI) and other sensitive data. To ensure consistent security practices across the DIB, the CMMC 2.0 framework, now fully enforced under the Final Rule, defines the requirements contractors must meet.

CMMC compliance is an active requirement under the Final Rule. For Level 2 solicitations involving CUI, contracts now specify whether a self-assessment or C3PAO assessment is required at award. Because readiness documentation takes time to prepare, early planning and the right tools remain essential.

What Does CMMC 2.0 Mean? 

CMMC 2.0 now serves as the enforced standard for protecting FCI and CUI under the Final Rule. This new framework has undergone a number of iterations and updates to a 3-tiered structure that allows self-assessments where appropriate but requires Certified 3rd Party Assessments for critical contracts.  

CMMC 2.0 introduces different assessment requirements depending on your contract type and the level of certification needed: 

Level 1: 

All organizations handling Federal Contract Information (FCI) must complete an annual self-assessment against 15 basic safeguarding requirements from FAR 52.204-21. No third-party certification is required. 

Level 2: 

Aligns with the 110 controls in NIST SP 800-171 r2, designed to protect Controlled Unclassified Information (CUI). 

For non-prioritized acquisitions, organizations may complete a self-assessment and submit results to the DoD’s Supplier Performance Risk System (SPRS). 

Under the Final Rule, solicitations now specify whether CMMC Level 2 requires a self-assessment or a third-party assessment by a certified C3PAO.

Level 3: 

Reserved for contractors supporting the most sensitive DoD programs. These organizations must undergo a government-led assessment, conducted by the Defense Contract Management Agency’s DIBCAC team. 

Do You Need a Third-Party CMMC Assessment? 

Whether your contract requires a third-party CMMC assessment depends on how it’s classified. The DoD will specify this in the solicitation. Prioritized acquisitions mandate an assessment by a certified third-party organization, while others may allow self-assessments. 

While CMMC 2.0 was created to reduce the compliance burden for SMBs, especially through self-assessments at Level 1 and some Level 2 contracts, implementation can still be resource-intensive. Many Level 2 contracts still require third-party certification, which makes early preparation and planning crucial. 

The Cybersecurity Challenges of CMMC 2.0 

Challenge 1: Deciphering and Implementing NIST SP 800-171 

CMMC 2.0 is built on the NIST SP 800-171 framework, which outlines 110 controls for protecting Controlled Unclassified Information (CUI). For organizations new to NIST standards, translating these technical requirements into practical, enforceable policies can be a major hurdle. Securing the handling, storage, and transmission of CUI, especially across distributed contractor and vendor networks, requires specialized knowledge and a well-structured approach. 

Challenge 2: Meeting Active CMMC Requirements  

The cybersecurity landscape is constantly changing, and compliance under the CMMC Final Rule requires continuous monitoring, periodic updates to documentation, and ongoing governance.

Challenge 3: Overcoming Resource Constraints 

Many SMBs in the Defense Industrial Base face budget constraints and a shortage of cybersecurity professionals. Yet CMMC 2.0 requires a company-wide commitment. Everyone who interacts with CUI must understand and follow the required practices. Achieving and sustaining compliance demands investment in training, security operations, and long-term support. 

Challenge 4: Streamlining Documentation and Policy Management  

Robust documentation and clear, current security policies are essential to demonstrating CMMC 2.0 compliance. These materials provide the structure for addressing security gaps uncovered during self-assessments or formal evaluations. However, maintaining this documentation, especially as requirements shift, can create a significant administrative load. Automating documentation and using managed compliance platforms can reduce the burden and improve accuracy. 

Challenge 5: Managing Supply Chain Security  

Under the Final Rule, CMMC compliance includes subcontractor oversight; contractors must ensure suppliers meet the same safeguarding and evidence obligations. This requires vetting partners, enforcing contractual obligations, and continuously monitoring supplier compliance. Without this oversight, even a well-protected organization can become vulnerable. 

How Exostar’s Managed Microsoft 365 Addresses These Challenges 

Navigating the complexities of CMMC 2.0 requires a robust and tailored approach.  Exostar’s Managed Microsoft 365 solution offers a powerful, fully managed SaaS platform tailored to the challenges faced by businesses in the Defense Industrial Base (DIB). 

• Streamlined NIST SP 800-171 Implementation: Products such as Managed Microsoft 365 can help with secure collaboration that meets CMMC 2.0 and NIST SP 800-171 requirements. This eliminates guesswork and reduces the risk of misconfigurations, ensuring a strong foundation for compliance. 
• Proactive Security Management: While GCC High provides the secure foundation needed to handle CUI, compliance requires proper configuration, documentation, and continuous oversight. Exostar’s Managed Microsoft 365 Solution delivers these services by helping organizations stay ahead of CMMC 2.0 requirements and reducing the burden on internal teams. 
• Cost-Effectiveness: Accessing expert cybersecurity resources and cutting-edge tools through a managed service is significantly more cost-effective than building an in-house team. This eliminates the need for expensive training and specialized personnel, providing a scalable and budget-friendly solution. 
• Simplified Documentation and Reporting: Managed services can generate comprehensive reports and documentation tailored to CMMC self-assessments. This streamlines the assessment process and provides clear evidence of compliance, reducing the time and effort required for documentation. 
• Enhanced Collaboration and Communication: Operating within Microsoft’s secure GCC High environment facilitates seamless collaboration and communication with suppliers and other stakeholders. This secure sharing of sensitive information fosters trust and strengthens supply chain security. 

Exostar’s Managed Microsoft 365 and the CMMC Ready Suite 

Exostar offers a CMMC Ready Suite to support organizations throughout the compliance lifecycle: 

• Exostar’s Managed Microsoft 365: Pre-configured for CMMC and NIST compliance, deployed in a secure enclave with built-in onboarding and support. 
• Certification Assistant: Maps NIST SP 800-171 controls to real-world requirements and tracks progress toward readiness for self-assessment or third-party assessment. 
• PolicyPro: Provides customizable policy templates aligned with CMMC controls, critical for SSPs and POA&Ms. 
• Optional Expert Support: Access to CMMC compliance specialists and assessment partners to accelerate readiness and reduce uncertainty. 

Get Exostar’s Managed Microsoft 365 and Collaborate Securely 

Meeting CMMC 2.0 requirements doesn’t have to overwhelm your team. With the right combination of secure collaboration tools, policy guidance, and compliance automation, you can reduce risk, save time, and confidently handle CUI. 

Solutions like Exostar’s Managed Microsoft 365, built for GCC High, and the CMMC Ready Suite help defense contractors protect CUI, simplify compliance, and stay resilient. 

If you need to strengthen how your GCC High environment supports CMMC Level 2 requirements, whether through documentation, configuration, or secure collaboration, explore solutions designed to help contractors align with the Final Rule and reduce the burden of ongoing compliance.

Ready to simplify compliance and move forward with confidence? Explore Exostar’s CMMC Ready Suite or talk to one of our experts to see how we can support your team’s next step. 

What You Should Do Now

To remain compliant under the Final Rule, organizations handling CUI should confirm whether their upcoming solicitations require a Level 2 self-assessment or a third-party assessment, ensure that GCC High environments are configured and documented according to NIST SP 800-171, and validate that evidence, SSPs, POA&Ms, and access controls are current. Use the CMMC Levels Quiz to determine your required level and identify gaps in governance, documentation, and system configuration before award deadlines.

Revised on December 5, 2025