How Microsoft Security Tools Streamline CMMC 2.0 Requirements

Quick Answer:

Microsoft Defender for Cloud and Azure security tools simplify CMMC Level 2 compliance by unifying threat detection, continuous monitoring and regulatory alignment. Through AI-driven insights, zero trust integration and automated vulnerability assessments, these Microsoft solutions help defense contractors strengthen data protection, meet federal standards and maintain secure, compliant cloud environments efficiently.

While this should come as no surprise, given the steady rollout of the Cybersecurity Maturity Model Certification (CMMC) 2.0, the Phase I deadline puts an enormous amount of pressure on contractors to ensure digital information related to the U.S. Department of Defense (recently given the alternate name of Department of War) remains out of our adversaries’ reach. Heightened CMMC Level 2 compliance requirements have arrived, tasking organizations that benefit from lucrative military contracts to quickly meet and maintain the data protection standards.

Although forward-thinking businesses have largely addressed the issue of CMMC mandates arriving at the Defense Department’s request for proposals (RFPs) and contracts, tools such as Microsoft Defender for Cloud and Azure security can help streamline the CMMC Level 2 compliance process. The team at Red River encourages industry leaders to integrate Microsoft security tools to exceed government expectations in a cost-effective fashion.

Understanding CMMC 2.0 Compliance Challenges

As of Nov. 10, 2025, Phase I of CMMC 2.0 will be enforced for organizations that fall into Level 1 and Level 2 compliance categories. Outfits that must adhere to Level 1 regulations are required to conduct an annual self-assessment and file the results with the federal government’s Supplier Performance Risk System (SPRS). While the Defense Department will accept self-assessments, it’s generally a good idea to work with an accredited Certified Third-Party Assessor Organization (C3PAO). Failing an assessment can result in your company being sidelined.

One of the caveats that can trip up even the most proactive organization involves subcontractors. For a company to secure a military contract, its subcontractors must also be in compliance with the CMMC. That aside, CMMC Level 2 compliance remains a source of confusion. Certain enterprises are allowed to conduct and report self-assessments. Others need to work with a C3PAO. The best way to be sure is to consult with a C3PAO and get it right the first time.

Who Needs CMMC Level 2 Compliance?

If your enterprise has provided goods or services within the military industrial base, you must likely meet Level 1 or 2 compliance standards. Handlers of FCI usually fall into Level 1 self-assessments, even if they operate as subcontractors. Storing, creating or transmitting CUI typically falls into the CMMC Level 2 compliance category. These are examples of organizations that must meet the regulations to remain in the federal government’s good graces.

• Direct Military Contractors
• Subcontractors Who Provide Goods and Materials
• Manufacturers and Suppliers
• Lawyers and Consultants
• Cybersecurity and Managed IT Firms

The number of companies that are directly counted in the military industrial base hovers around 100,000 when you add in subcontractors. Given the sheer volume of outfits and shortage of CMMC experts, it might be prudent to schedule a consultation if you have any doubts about your ability to gain or maintain compliance.

What’s At Stake?

After November 10, self-assessment and C3PAO audits must be filed with the federal government to demonstrate CMMC 2.0 compliance. Unless your organization can prove it has passed muster, new contracts will be withheld.

In terms of the compliance status of subcontractors, their cybersecurity defenses depend on the type of data they receive, store or transmit. These are the two types of digital information that businesses in the military industrial base and supply chain must protect.

• Federal Contract Information (FCI): This type of information is usually generated by the federal government and is not approved for public access. Often part of a government contract, FCI typically involves transactions and payment processes. Although not necessarily secret, rogue nations attempt to collect FCI as a piece of America’s national security puzzle.
• Controlled Unclassified Information (CUI): This type of unclassified information is also created by the federal government or on its behalf. Sensitive in nature, CUI requires stringent protection to prevent setbacks such as intellectual property theft.

Provisions in the CMMC 2.0 mandate the insulation of FCI and CUI from espionage and theft. This applies to contracts exceeding the so-called micro-purchase threshold of $20,000 in the U.S. and $35,000 for businesses operating in other countries. Always remember, advanced persistent threats, working for enemy states, are well-funded and will tirelessly look for ways to breach networks and steal America’s military secrets.

Determined Cybersecurity Necessary for Military Contractors, Subcontractors

The number of cyberattacks continues to advance, with a reported 600 million incursions each day. An estimated 59 percent of businesses feel the sting of ransomware annually and companies operating in the U.S. military supply chain are considered high-profile targets.

Rival nations provide a steady stream of funding to target American military enterprises. Using multi-faceted schemes to identify and exploit security vulnerabilities, every scrap of CUI or FCI helps digital criminals move closer to learning national security secrets, including hardware, defense projects and the technology that keeps military service members safe. That being said, the federal government expects corporations to utilize determined cybersecurity measures such as zero trust architecture, which are compatible with Microsoft security tools.

“Without the right level and right kind of cybersecurity architecture in place, adversary nations will continue to infiltrate U.S. military and partner networks, including contractors within the defense industrial base and steal important information, which may include details on weapons systems,” the U.S. Department of Defense states.

Zero trust cybersecurity makes the seemingly counterintuitive assumption that sophisticated hackers will, eventually, find a workaround to breach even the best-defended network. The data security approach employs a series of protocols to prevent unauthorized access to on-premises and cloud-based systems. These typically involve multi-factor authentication and endpoint device security, among others.

Once a legitimate user logs into a network, their profile is granted access to only the files, applications and assets needed to fulfill routine tasks. Leveraging any micro-segmented information beyond normal production needs requires authorization. If someone attempts to exceed their least privileged access, continuous monitoring components flag the activity and cybersecurity measures are brought to bear.

A wide range of tools can be integrated to achieve the rigorous zero trust protections advocated by the Defense Department. Fortunately for business leaders concerned about cost and efficiency, the following Microsoft security tools simplify data protection and CMMC level 2 compliance.

Microsoft Defender for Cloud

Microsoft Defender for Cloud orchestrates a step-by-step process that connects digital environments and identifies cybersecurity vulnerabilities and threats at breakneck speed. To accomplish these tasks in real time, it analyzes the assets, information and the manner in which they are transmitted and secured. Employing standardized policy metrics, Microsoft Defender for Cloud assigns a score that reflects the cybersecurity status of critical and non-critical elements of a system.

This cybersecurity approach relies on next-generation technologies that are making headline news. Machine learning and artificial intelligence (AI) deliver enhanced threat detection capabilities to seek out, identify, contain and purge threats attempting to pilfer off CUI, FCI and other forms of data sought after by rogue nations and common thieves.

Its ability to seamlessly work within zero trust architecture allows cybersecurity professionals to make recommendations to adjust, augment or buttress protections within the segmented network to improve cybersecurity scores. The following are ways Microsoft Defender for Cloud helps make CMMC Level 2 compliance cost-effective and efficient.

Cloud Security Posture Management (CSPM)

One of the primary functions of Microsoft Defender for Cloud is to relentlessly review cloud security. It seeks out misconfigurations that cybercriminals could exploit. These are other ways CSPM delivers cloud security posture management.

• Continuous Assessment: The Microsoft tool scrutinizes data storage, networks and resources, comparing them against best industry practices.
• Real-Time Alerts: Not only does Microsoft Defender for Cloud send immediate and actionable security alerts, but it also makes insightful recommendations to address vulnerabilities.
• Regulatory Compliance: Perfect for organizations that require CMMC Level 2 compliance, the Microsoft tool syncs with the National Institute of Standards and Technology (NIST) protocols embedded in the Defense Department’s cybersecurity mandate. It also supports HIPAA compliance, among others.

Proactive Threat Identification & Safeguards

It’s important to keep in mind that Microsoft Defender for Cloud goes much further than identifying misconfiguration vulnerabilities. The tool addresses a variety of hacking dangers that are commonly used to target military contractors and subcontractors. These are ways Defender provides the robust data protection required to achieve CMMC compliance.

Behavioral Analytics: Its use of AI and machine learning outpaces even the most highly skilled cybercriminals, who sometimes find ways to penetrate the most secure systems. A welcome addition to any zero-trust architectural approach, Defender for Cloud seeks out subtle anomalies and recognizes patterns. Even if an advanced persistent threat actor learns a user’s login credentials and overcomes multi-factor authentication, the criminal’s activities are promptly flagged.

• Detecting Malware: Enterprise-level antivirus software and firewalls are insufficient for CMMC Level 2 compliance alone. Today’s threat actors have the technological acumen and patience to orchestrate upstream attacks that can blindside entire sectors. Defender for Cloud checks and rechecks software packages, as well as the updates that can mask malware.
• Threat Protection: The superior AI and machine learning processes can be configured to detect, deter and expel threats in real time. These issues include, but are not limited to, malware deployment, unauthorized network access and DDoS attacks.
• Vulnerability Evaluations: The Microsoft tool scans all of your cloud resources to highlight any and all weak links. It can also provide remedies to reduce vulnerabilities going forward.

Using a central vantage point, it delivers comprehensive analytics, generates on-time alerts and proposes ways to harden the operation’s attack surface.

Microsoft Sentinel

A key cybersecurity component to a cloud-based network, Microsoft Sentinel is an ideal Security Information and Event Management (SIEM) and Security Orchestration, Automation and Response (SOAR) solution for organizations that require robust data protection. Previously called Azure Sentinel, the value-added regulatory compliance element centralizes the way data is viewed across a business entity’s cloud operations.

Also utilizing AI and machine learning, Sentinel collects data, investigates issues and uses an automated playbook to respond to threats. It provides companies with the threat-hunting capacity needed to go on the offensive. Scalable and effective, Microsoft Sentinel helps keep military contractors and subcontractors prepared.

Microsoft Purview

Renamed from Azure Purview to Microsoft Purview, this tool consolidates data governance, security and regulatory compliance facets. One of the fascinating aspects of this Microsoft tool is that its data governance is not limited to the cloud.

• Compliance: Provides the necessary tools for self-auditing, managing data and tracking movement.
• Nuanced Protection: Its ability to protect information across storage and access systems, as well as work within SaaS parameters, is accomplished by classifying and defending sensitive files.
• Improved Productivity: This Microsoft tool eliminates the need to handle critical data manually, saving valuable work hours.

Microsoft Purview can manage digital information equally well for organizations that employ hybrid systems, which include on-premises and multiple cloud spaces, as well as software-as-a-service (SaaS) options. These rank among the top benefits of adding Microsoft Purview to your suite of tools.

Azure AD

This cloud-based identity and access management element works diligently to strengthen the login credential protections found in zero trust architecture and other cybersecurity approaches. Retooled as part of Microsoft Entra ID, the Azure security measure offers critical user security features, including single sign-on, multi-factor authentication and endpoint device management. These are ways Azure security measures augment data security, leading to CMMC compliance.

• Layered Security: Requires multi-factor authentication for users to log into a system. The Azure security solution also probes endpoint devices, determining their location, cyber-health and risk.
• Identity Management: The Microsoft security tool helps manage access to sensitive data, in line with CMMC requirements. It works in conjunction with the least-privileged user policies associated with zero-trust security.

The Microsoft Azure security tool helps organizations that adopt BYOD policies. It enables employers to register and secure vetted cell phones, laptops and tablets. This practice prevents unauthorized or compromised devices from logging into a network.

Contact Red River for CMMC 2.0 Compliance Solutions

At Red River, we recognize the importance of safeguarding digital information related to our national defense. We work diligently to craft the determined cybersecurity protocols needed to detect, deter and expel threat actors.

Our cybersecurity experts implement zero trust and other forms of data security infrastructure for our valued customers to achieve and maintain CMMC Level 2 compliance. If you would like to learn more about the Microsoft security tools we recommend, contact us today by calling or filling out our online form. Let’s get the process started!