What is Microsoft GCC High? And Does Your Business Need It?

If you’re working on or bidding for a Department of Defense (DoD) contract or working towards CMMC compliance, a key requirement is that you demonstrate the ability to handle Controlled Unclassified Information (CUI) and meet ITAR standards. This means that your standard Microsoft 365 environment or Google Workspace isn’t up to standards.

This is where Microsoft Government Community Cloud High (GCC High) comes in. GCC High is a specialized environment built to meet the data security requirements of the U.S. government.

If you’re a defense contractor or a cleared organization, choosing between "Standard" and "High" is the difference between being audit-ready and being disqualified from the defense industrial base (DIB).

In this guide, we’ll break down exactly what GCC High is, why it exists, and how to determine if your organization actually needs it.

What is Microsoft GCC High?

Microsoft Government Community Cloud (GCC) High works in almost exactly the same way as a standard commercial license. But it’s designed to meet government data requirements for any organizations in the Defense Industrial Base (DIB) that handle CUI.

GCC High is a sovereign cloud environment built on the Microsoft Azure Government infrastructure, utilizing specialized data centers. Sovereign means that data is hosted on isolated servers within the United States and managed exclusively by screened U.S. citizens — a non-negotiable requirement for organizations handling ITAR (International Traffic in Arms Regulations) data.

Learn more about GCC High and secure enclaves in the below video:

Why DoD Contractors Use GCC High

Government officials and IT decision-makers within service organizations face a constant dilemma: how do you keep cloud-based data accessible across its workforce while following strict federal cybersecurity rules? You don’t want sensitive data exploited, but assessing cloud security shouldn't be a full-time guessing game.

Microsoft solved this by creating a dedicated path for the DIB and other secure DoD environments. GCC High is the gold standard because it satisfies several critical frameworks and compliance requirements:

• NIST 800-171
• ITAR (International Traffic in Arms Regulations)
• DFARS 252.204-7012
• FedRAMP High
• CMMC Level 2 (though it’s not required)

While it offers the familiar productivity tools your team uses daily (Teams, Exchange, SharePoint, OneDrive), it’s physically and logically separated from the commercial environment where most businesses operate.

GCC High vs. GCC

Both Microsoft GCC (Government Community Cloud) and GCC High are designed to offer a more secure environment than 365 Commercial. But there are some key differences:

1. Compliance Level: GCC meets FedRAMP Moderate requirements, whereas GCC High meets FedRAMP High requirements.
2. Data Residency and Sovereignty: Both GCC and GCC High store data in the US but GCC High operates within the Azure Government environment, meaning it’s only accessible to US citizens.
3. Data Sensitivity: GCC is for government data. If you handle CUI Specialized, ITAR, or some DoD-related data for federal agencies, you’ll need GCC High.

Learn more about GCC vs. GCC High here.

When Does a Service Organization Need GCC High?

You don’t need GCC High just because you work with the government or other government agencies; whether you need it or not generally comes down to the types of data you handle and what’s stipulated in your contract.

Here are the triggers that usually mandate a move to GCC High:

1. ITAR (International Traffic in Arms Regulations)

If you handle export-controlled data - technical drawings, specifications, or software related to defense articles - you are subject to ITAR. Under ITAR, non-US citizens aren’t allowed to access or view that data (even a Microsoft support engineer fixing a bug). So if you handle ITAR data, you need GCC High.

2. DFARS 7012

This regulation requires defense contractors to report cyber incidents to the DoD within 72 hours and preserve forensic data. While the standard GCC cloud supports most of this, GCC High is the only environment where Microsoft contractually agrees to support the mandatory flow-down requirements for incident reporting fully.

3. CMMC Level 2 & 3

For CMMC compliance, the lines are blurrier. You can technically achieve CMMC Level 2 compliance with standard GCC. However, GCC High meets FedRAMP High impact levels natively. So if you’re going through a CMMC audit, auditors will ask fewer questions about a GCC High environment because the underlying infrastructure is pre-validated by the DoD. GCC High is often the path of least resistance when it comes to CMMC.

4. Handling Specified CUI

CUI is broken down into two categories: CUI Specialized and CUI Basic. Basic is the default category for CUI. Handling CUI doesn’t necessarily mean you need to use GCC High (though it’s often recommended). However, if you handle CUI Specialized data, GCC is a requirement due to the additional safeguarding requirements.

How To Access GCC High

Moving to GCC High isn't like upgrading a normal subscription service. You can’t just click a button in your Microsoft Commercial account and unlock GCC High.

First, organizations that want to use GCC High need to meet one of the following eligibility criteria:

1. Is a U.S. government entity, or
2. Works as a contractor/subcontractor supporting government work, and
3. Handles regulated government data requiring high compliance standards

However, meeting one of the above criteria isn’t the only hoop you need to jump through. Microsoft also needs to validate that your organization is eligible before you can purchase GCC High. Typically, this means you need to submit an eligibility application to Microsoft and include documentation proving your need for GCC High. This may include:

1. Federal contracts proving you handle sensitive data
2. Your SAM.gov registration or a valid CAGE code (Commercial and Government Entity Code)
3. A government sponsor letter stating that you need GCC High compliance

Once validated and approved, you can purchase GCC High licenses through Microsoft or authorized partners (often called AOS-G partners).

This review process typically takes around 10 days but it can be as long as 3–4 weeks, so don’t leave this until the last minute before a compliance deadline.

How Much Does GCC High Cost?

Licenses for GCC High can cost around 50% more than the price of a Commercial subscription. GCC High is more expensive than Commercial because the platform requires additional security features and US-based infrastructure and support so it can safely handle CUI and ITAR data.

Final Thoughts

Making the move to GCC High is a big decision. It impacts your budget, user experience, and security posture. For many organizations in the DIB, it’s the cost of doing business and mandated in contracts. So often, you don’t have a choice whether to opt for GCC or GCC High — the requirement will flow down to you.

And, honestly, in most cases where GCC High isn’t mandated, it’s often the smart choice if you’re working with CUI.

If you’d like any advice on compliance with government security regulations or to figure out if GCC High is the right choice for your business, get in touch with our expert team. Workstreet offers expert-led implementation of CMMC, FedRAMP, GovRAMP, CJIS, NIST 800-171, and NIST 800-53 frameworks and our team would love to help you figure out the best path forward.

Microsoft GCC FAQs

What is an AOS-G Partner?

AOS-G stands for (Agreement for Online Services – Government). An AOS-G is a company that has been vetted and authorized to sell GCC Licenses and if you require GCC High, you’ll have to purchase through one of these approved sellers.

How Do You Get Validation for GCC High?

You must apply and be approved by Microsoft. Along with your application you’ll have to share documentation to prove that GCC is needed, this can be: a contract, sponsor letter, or CAGE code. The AOS-G you work with to obtain your license should be able to help ensure you have the relevant documentation.

How Long Does Validation Take?

It typically takes around 10 business days to receive validation, but it can be longer (up to 3-4 weeks).

Is Google Workspace an Option?

The short answer: Yes, but it’s harder. Google Workspace Enterprise can be configured for CMMC compliance and FedRAMP standards. However, it requires significantly more manual work than GCC or GCC High. It also puts more responsibility on you to prove compliance during an audit, whereas GCC High shifts that burden to Microsoft.