The market

Every regulated deal hits the same wall:
"Not in your cloud."

Software is going into production in regulated companies right now — and the buyer says the data can't leave their environment. Same wall, top to bottom: a DoD program office demanding a SCIF-grade posture and a commercial CISO guarding a SOC 2 / PCI / HIPAA boundary kill the deal with the identical sentence. The vendor's choice today: rebuild their whole stack on-prem (they can't) or walk away (they do). Legation gives them a third option: ship as-is, wrapped.

Two segments, one product

The herd is the market. The DoD is the halo.

SegmentFrameworksDeliveryRole
The herd — volumeSOC 2 · HIPAA · PCI-DSS · ISO 42001 · GDPR · EU AI ActManaged BYOC VPC (their account, their keys)revenue + growth
Sovereign — haloDoD IL5 · CMMC · air-gapShipped software (they run it)margin + credibility

The volume is in the regulated commercial herd. The DoD tier is the trust anchor that closes the commercial sale — nobody selling into healthcare or fintech has a DoD-hardened governance story. You do. And it's one product on one dial: the same envelope, dialed from Sovereign down to Regulated or Bolt-on. The commercial buyer inherits the DoD-grade moat — CNSA SHA-384 seal, in-VPC treaty enforcement, dual Recall — with the tier setting the floor for their framework, not the IL5 label or the IL5 price.

What actually closes the deal

Three things a CISO needs. Legation has all three.

End of the questionnaire

A pre-built audit package collapses a six-week security review into a document. You sell de-risking, not software.

A kill switch they hold

The customer can sever the deployment unilaterally — and the operator cannot override it. The single sentence that relaxes a CISO.

Their account, their keys

BYOC: it runs in the customer's own VPC, on their KMS keys, inside their boundary. Sovereignty by construction.

Six commercial verticals

The evidence pack is the vertical-specialization layer.

Same product. Flip the framework, flip the vertical. Two are open land-grabs — new law, no incumbents.

PCI-DSS

Fintech & payments. Card data never persists; "test security regularly" is satisfied by QA-in-VPC.

HIPAA

Healthcare & health-tech. "Minimum necessary" = only projections ever cross the membrane.

GDPR

Anything EU. Data-flow inversion is data-minimisation; residency is structural.

EU AI Act ⚡

Everyone deploying AI in the EU. New law, enforcement ramping, zero deployment-governance answers in market.

ISO 42001 ⚡

Enterprises formalizing AI governance. The first AI management standard — they're just starting to certify.

SOC 2

The default enterprise trust bar. The whole TSC maps to the envelope's mechanisms.

The wall is universal, simultaneous, and unsolved.

That's the best possible time to sell infrastructure.