A detailed comparison of the two most popular security frameworks to help you make the right choice for your business.
When enterprise customers ask about your security certifications, SOC 2 and ISO 27001 are the two frameworks that come up most often. But which one should you pursue? The answer depends on your market, customers, and strategic goals.
Quick Comparison
| Aspect | SOC 2 | ISO 27001 |
|---|---|---|
| Origin | AICPA (USA) | ISO (International) |
| Primary Market | North America, SaaS | Europe, Global Enterprise |
| Output | Attestation Report | Certification |
| Validity | 12 months (annual audit) | 3 years (annual surveillance) |
| Flexibility | Choose Trust Service Criteria | All 93 controls apply |
| Timeline | 3-6 months (Type II) | 6-12 months |
SOC 2: The North American Standard
SOC 2 was developed by the American Institute of CPAs (AICPA) specifically for service organizations—particularly technology and cloud companies. It's become the de facto standard for SaaS companies selling to North American enterprises.
SOC 2 Strengths
- Flexibility: Choose which Trust Service Criteria to include (Security is required; Availability, Processing Integrity, Confidentiality, and Privacy are optional)
- Speed: Faster to achieve than ISO 27001, especially Type I
- Market recognition: Widely understood by US enterprise buyers
- Detailed report: Provides specific information about your controls, not just a pass/fail
SOC 2 Limitations
- Less recognized outside North America
- Annual audit cycle can be resource-intensive
- No formal certification—it's an attestation report
ISO 27001: The International Standard
ISO 27001 is an international standard for Information Security Management Systems (ISMS). It's recognized globally and is often required by European and multinational enterprises.
ISO 27001 Strengths
- Global recognition: Accepted worldwide, essential for international business
- Formal certification: You receive a certificate you can display
- 3-year validity: Less frequent full audits (annual surveillance only)
- Comprehensive: Covers the entire organization, not just specific services
ISO 27001 Limitations
- Longer implementation timeline (6-12 months typically)
- All 93 controls must be addressed (though some can be "not applicable")
- Requires ongoing ISMS management and continuous improvement
- Higher initial investment
When to Choose SOC 2
SOC 2 is likely the right choice if:
- Your primary market is North America
- You're a SaaS or cloud services company
- Enterprise customers are specifically asking for SOC 2
- You need to demonstrate compliance quickly
- You want flexibility in scope
When to Choose ISO 27001
ISO 27001 is likely the right choice if:
- You're expanding into European or international markets
- Customers specifically require ISO 27001
- You want a comprehensive, organization-wide security framework
- You prefer a formal certification over an attestation report
- You're building long-term security infrastructure
The Case for Both
Many companies ultimately pursue both SOC 2 and ISO 27001. The good news: there's significant overlap. Our analysis shows approximately 60% of controls are shared between the frameworks. This means:
- If you have SOC 2, you're ~60% of the way to ISO 27001
- Pursuing both simultaneously is more efficient than doing them sequentially
- Shared documentation and evidence reduces total effort
Control Mapping: Key Overlaps
Here are some examples of how controls map between the frameworks:
SOC 2 CC6.1-CC6.8 ↔ ISO 27001 A.9 Access Control
SOC 2 CC7.4-CC7.5 ↔ ISO 27001 A.16 Incident Management
SOC 2 CC3.1-CC3.4 ↔ ISO 27001 Clause 6 & A.8
SOC 2 CC8.1 ↔ ISO 27001 A.12.1.2, A.14.2
Cost Comparison
| Cost Category | SOC 2 | ISO 27001 |
|---|---|---|
| Consulting | $20K - $60K | $30K - $80K |
| Initial Audit | $15K - $50K | $20K - $60K |
| Annual Maintenance | $20K - $40K | $10K - $25K |
Our Recommendation
For most US-based SaaS companies, we recommend starting with SOC 2. It's faster, more flexible, and addresses immediate enterprise sales requirements. Once you have SOC 2, pursuing ISO 27001 becomes significantly easier.
If you're already serving international customers or have specific ISO 27001 requirements, consider pursuing both frameworks simultaneously to maximize efficiency.
The best framework is the one that opens doors for your business. Talk to us about your specific situation—we'll help you make the right choice.