Microsoft GCC vs. GCC High: What's the Difference?
Everything you need to decide whether Microsoft GCC or GCC High is right for your organization.
For government contractors in the Defense Industrial Base (DIB) that handle Controlled Unclassified Information (CUI), choosing the right cloud services provider is incredibly important.
For many organizations working towards CMMC Level 1 or Level 2, DFARS 252.204-7012, or ITAR, the answer is Microsoft 365 GCC (Government Community Cloud) or GCC High. But which is the right fit for your organization? Here’s what you need to know to make the right decision.
Introducing Microsoft Government Community Cloud
Microsoft GCC isn't just a different price tier. It is a segregated instance of Microsoft 365 services designed specifically for US government agencies and contractors.
Microsoft offers three cloud options for organizations:
- Microsoft 365 Commercial: The everyday license that most businesses using Microsoft software will be running. This can be used for handling Federal Contract Information (FCI) under a government contract but you will need certain controls implemented (such as: Access controls, least privilege, MFA for users)
- Microsoft 365 GCC: Is built for government agencies and contractors and meets FedRAMP Moderate requirements.
- Microsoft 365 GCC High: Is designed for government contractors handling CUI or other sensitive government data. GCC High meets FedRAMP High, DFARS 7012, and ITAR standards.
Microsoft GCC and GCC High aren’t products you can just sign up for. To get access, you need to prove to Microsoft that you handle government-controlled data (like CUI) or hold a contract with a government entity.
What is Microsoft 365 GCC?
GCC functions like the commercial version of Micosoft 365 but adds data residency guarantees within the continental United States.
GCC sits on the commercial Azure network. This means it shares the same physical infrastructure backbone as the commercial version of Microsoft 365, but the data logic is segregated to ensure that your Exchange emails, SharePoint files, and OneDrive data are stored solely in US data centers.
However, while your data is stored in the US, GCC uses Microsoft Commercial Cloud infrastructure, which means that your data may still be processed outside of the Continental United States.
GCC meets FedRAMP Moderate requirements and can also meet FARS 252.204-7012 requirements for non–export-controlled CUI. If your organization handles standard CUI (without ITAR/EAR) but doesn’t touch any highly sensitive or classified information, GCC may be appropriate for your organization’s needs.
What is Microsoft 365 GCC High?
GCC High takes things up another level. It’s designed for organizations that need to meet the demands of organizations that work for the Department of Defense or handle highly sensitive ITAR (International Traffic in Arms Regulations) and EAR (Export Administration Regulations) data.
Like GCC, GCC High ensures data is stored in the US. However, GCC High offers additional protections through a U.S. Sovereign Cloud accreditation boundary which means with GCC High, all support tickets, backend maintenance, and infrastructure access are handled exclusively by US Persons (citizens or permanent residents) who have passed rigid background screenings. So if a server goes down in the middle of the night, you are guaranteed that the engineer fixing it is on US soil and vetted.
GCC High meets FedRAMP High requirements as well as ITAR and EAR, making it the best option for any organizations handling highly sensitive government data.
GCC vs. GCC High: The Key Differences
GCC and GCC High are both designed to offer a more security environment than 365 Commercial. However, they offer different levels of security. Here are the main differences:
- FedRAMP Moderate vs. High: GCC meets FedRAMP Moderate requirements, while GCC High meets FedRAMP High requirements. If you’re a DoD contractor handling classified information and data, you’ll need GCC High due to its stricture security standards.
- Data residency: GCC data is stored in the US within government-only data centers. Whereas GCC High ensures that all data also stays within the US but comes with stricter data sovereignty rules.
How to Choose the Right Option
The decision between GCC and GCC High ultimately comes down to what type of government data you handle and the requirements listed in your contracts.
GCC likely has everything you need if:
- You handle CUI (without dissemination restrictions).
- You work with local government agencies or general federal contractors.
- The data you work with doesn’t require US-only data residency.
- You only need to meet FedRAMP Moderate requirements.
You’ll likely need GCC High if:
- You’re a DoD contractor touching ITAR or EAR data.
- FedRAMP High or DFARS 7012 compliance is required by your contracts.
If you’re working towards CMMC Level 2, in most cases, GCC High is the right choice.
Choosing the right option ensures peace of mind when working with sensitive data. If you’re unsure which option is right for your organization, get in touch with our team and we’d be happy to advise.
How to Get Set Up with GCC or GCC High
GCC and GCC High typically costs 30–40% more than commercial licenses and requires a complex validation process that can take weeks.
To get GCC High, you generally must go through an AOS-G (Agreement for Online Services for Government) partner. These are specialized resellers authorized to sell these licenses. The validation process involves submitting your CAGE code or sponsorship letters to Microsoft to prove you are a legitimate government contractor.
What About Google Workspace?
You don't have to use Microsoft. Google Workspace Enterprise is a viable option for DoD and government contractors. And sometimes, it’s preferred because of Google’s usability and familiarity to many startups and teams.
However, while Google may be more user friendly than Microsoft, getting Google Workspace into a state where it’s compliant with FedRAMP Moderate, FedRAMP High, and CMMC requirements can be a lot of work. Plus, it shifts the compliance burden back to your organization, whereas with GCC and GCC High, that focus is on Microsoft.
Final Thoughts
Don't buy technology before you understand your contract and compliance requirements.
It’s easy to think you need to setup a GCC High Environment across your whole company to meet the security requirements of a DoD contract. But that’s not always the case. If you only handle basic FCI (Federal Contract Information), buying 100 GCC High Licenses for your company isn’t needed when that data could have been handled on a commercial license.
The first step is to understand the scope of your contract and the cybersecurity compliance standards your cloud computing environment needs to meet. Then buy the environment that fits the data - not the other way around.
If you aren't sure if your data counts as ITAR or CUI, don't guess. The difference is a 40% markup on your IT budget and a massive migration headache.
Need help scoping your environment? Get in touch with our team — we’d love to discuss your compliance needs and how we can help.
