ISO 27001 vs SOC 2: Making the Right Security Choice

Ever wonder why B2B buyers eye your security credentials before sealing the deal? Here's the naked truth: data protection isn’t optional anymore. A staggering 87% of consumers see data privacy as a human right, and 97% of U.S. consumers are worried about it. Scary, right?

Without SOC 2 or ISO 27001, you're showing up to a trust party empty-handed. You could have the best product in the world, but without security credentials? Good luck.

Both frameworks help you:

• Build trust with customers and vendors
• Stay compliant with legal requirements
• Strengthen your security posture
• Unlock new business opportunities

ISO 27001 is the global favorite, while SOC 2 is the go-to for U.S.-centric companies. As one expert puts it: “SOC for U.S., ISO for everywhere else.”

Here’s the kicker: they share about 96% of the same controls. So why not go for both and cut down compliance costs using the same team and tools? In today’s paranoid, data-driven world, these certifications are your golden ticket to the trust club.

What Is SOC 2?

"SOC 2 is favored by North American companies, especially in sectors like cloud services, SaaS, and IT services, where detailed reports on internal controls are crucial." — Conformance1 Team, Cybersecurity compliance experts

SOC 2 is a security and compliance framework developed by the AICPA to evaluate how well a company protects customer data across its systems and cloud environments. Instead of telling you which controls to implement, SOC 2 checks whether your existing security practices are properly designed and consistently followed. It’s not a legal requirement, but in the North American SaaS and tech market, it’s become a near-mandatory trust badge—one that signals your business can be trusted with sensitive customer information.

SOC 2 Type 1 vs Type 2

Want the real difference between SOC 2 Type 1 and Type 2? It's simple.

Type 1 reports are like that perfect Instagram photo - everything looks great in that single moment. "Are your security controls properly designed?" That's all they ask. Faster and cheaper, making it a tempting first step.

Type 2 reports, though? They're watching you for months. Not just asking if your controls look good, but if they actually work over time (typically 3-12 months). No wonder most clients now toss Type 1 reports in the trash - they want the real deal.

Choosing between them? Consider this:

• Type 1 is like fast food - quick and cheap
• Type 2 is like a proper meal - takes longer but actually satisfies
• Your customers increasingly demand Type 2 - because they're not stupid

Why US SaaS Companies Rely on SOC 2

American SaaS companies don't just like SOC 2 - they're obsessed with it. Here's why:

1. No SOC 2, no big deals: Many enterprises won't even glance at vendors without it - harsh but true
2. Instant trust builder: Shows everyone you're not just talking about security, you're doing it
3. Kills those endless security questionnaires: Submit one SOC 2 report instead of answering 500 security questions
4. Creates a security foundation that actually works: Builds practices that keep hackers crying into their keyboards

Truth is, if you're selling software in America without SOC 2, you're basically showing up to a gunfight with a spoon.

SOC 2 Trust Service Criteria

SOC 2 breaks down into five Trust Services Criteria. Like at a buffet, only one is mandatory; the rest are up to you:

• Security (the main dish): Protects your systems from unauthorized access. Includes the basics like monitoring, risk assessment, and access controls.

• Availability (side option): Proves your systems stay up and running when promised. Cloud providers, this one's for you.

• Processing Integrity (specialty item): Confirms your processes are "complete, valid, accurate, timely, and authorized." Financial services eat this up.

• Confidentiality (extra protection): Guards business secrets through proper access limits and data handling.

• Privacy (cherry on top): Ensures personal information follows your stated policies. Essential if you're handling people's personal details.

SOC 2 Trust Service Criteria

Here's the kicker – only Security is mandatory. The rest? Pick and choose based on what your business and customers need. It's like a security buffet, but one where you better not skip the main course.

What is ISO 27001?

ISO 27001 is the global heavyweight champ of security standards, with more than 33,000 organizations worldwide flaunting this certification. While SOC 2 stays mostly in America's backyard, ISO 27001 crosses borders like a security passport that works everywhere.

Understanding ISMS in ISO 27001

Ever heard of ISMS? It's the beating heart of ISO 27001 – an Information Security Management System that doesn't just care about your fancy tech. It pulls together your people, processes, AND technology into one security powerhouse.

What does this ISMS thing actually make you do?

• Hunt down security risks like they owe you money
• Put up security fences where the bad guys might get in
• Keep checking if your security actually works (spoiler: it needs constant love)
• Document EVERYTHING (because if it's not written down, it didn't happen)

Security pros call this "defense in depth" - fancy talk for "we've got layers on layers of protection." Like an onion, but for keeping your data safe instead of making you cry.

Updates in ISO 27001:2022

The 2022 update shook things up. They ditched the old 114 controls and now have 93 - but don't be fooled! It's not laziness. They just got smarter about grouping them.
Instead of 14 confusing categories, there are now four themes that actually make sense: Organizational, People, Physical, and Technological. About time, right?

They've finally caught up with modern problems like cloud services and threat intelligence. Because let's face it - today's hackers aren't using the same playbook from 2013.

Why European Companies Prefer ISO 27001

European businesses have a serious crush on ISO 27001, and for good reason:
It's like ISO 27001 and GDPR went on a date and realized they're perfect for each other. European companies already jumping through GDPR hoops find ISO 27001 fits right into their compliance dance routine.

One security director put it perfectly: "Having ISO 27001 certification immediately puts European companies in a position to compete globally." It's their golden ticket to the international business chocolate factory.

Europeans love their systems and documentation (shocking, I know). ISO 27001's structured approach feels like home to them, while SOC 2's flexibility makes Europeans nervous - like serving pizza with pineapple.

When European companies are shopping for vendors, they ask for ISO 27001 like Americans ask for SOC 2. If you're eyeing European markets and don't have ISO 27001, you might as well show up to the party wearing last season's security practices.

Key Differences Between SOC 2 and ISO 27001

SOC 2 and ISO 27001 aren’t interchangeable—they prove different things, to different audiences, in very different ways. ISO 27001 is a full-fledged global certification with rigid documentation, a longer audit cycle, and a three-year validity window. SOC 2 is faster, cheaper, and far more detailed, but it’s an attestation, not a certification—something many buyers don’t realize.

The core security controls overlap about 80%, but the experience doesn’t. ISO 27001 demands structure and governance. SOC 2 demands proof your controls actually work in real life. That’s why buyers sometimes ask for one, sometimes the other, and sometimes both.

Similarities Between SOC 2 and ISO 27001

Wait, what? These two security frameworks that everyone keeps pitting against each other actually have more in common than you'd think! Yup, the whole "either/or" debate hides a juicy truth that could save your company serious time and money.

80% Control Overlap Between SOC 2 and ISO 27001

Here's something the consultants charging you double don't want you to know – nearly 80% of security controls between these frameworks address the exact same security needs! They're just dressed in different outfits.

What does this hidden overlap mean for you? Pure gold:

• Slash implementation time by up to 40% (think months saved!)
• Cut your compliance costs by roughly 30-35% (hello, budget relief!)
• Stop duplicating documents like a madman - collect evidence once, use it twice

It's like finding out your favorite expensive health food and the cheaper alternative actually contain the same ingredients. Why pay twice for essentially the same protection?

Third-Party Verification Requirements

Neither framework trusts you to grade your own homework – both demand independent third-party verification. Self-certification? Not a chance.

The only real difference is who signs off:

• ISO 27001: Accredited certification bodies (super official folks)
• SOC 2: Licensed CPA firms (bean counters with security knowledge)

Not Required, But Actually... Required

Funny thing - technically, nobody's legally forcing you to get either certification. Yet somehow 85% of enterprise buyers now demand to see your SOC 2 or ISO 27001 paperwork before they'll even consider working with you.
Optional in theory. Mandatory in reality.

How Both Frameworks Accelerate Trust

Both certificates serve as business lubricant - helping deals slide through approvals 50% faster. And a whopping 62% of businesses say the biggest win was increased customer confidence.
Think about it – implementing both standards is like showing up to a security potluck with two different dishes made from mostly the same ingredients. Everyone's impressed by your effort, but you know the secret – you cooked once, served twice.

For companies playing in both American and global markets, this two-for-one approach isn't just smart – it's practically free money.

SOC 2 vs ISO 27001: Pick One? Pick Both?

Struggling to choose between SOC 2 and ISO 27001? You’re not the only one. The real answer isn’t about which framework is “better” — it’s about which one fits your customers, your industry, and your current level of security maturity. Let’s break it down so the decision stops feeling like a gamble.

Where Are Your Customers?

• North America? SOC 2 is the go-to.
• Global audience? ISO 27001 speaks internationally.

Industry Standards

• SaaS in North America? SOC 2 is the industry standard.
• Global companies? ISO 27001 is expected.
• Regulated industries? They have their own security demands.

How Mature Is Your Security Program?

• New security program? SOC 2 is a good starting point.
• Mature security program? ISO 27001 demands a higher level of readiness.

Growth Plans

• Scaling fast? SOC 2 is quicker to implement.
• Going global? ISO 27001 is your key to international expansion.
• Want both? Dual certification boosts your security profile.

What Are Others Doing?

• Startups in regulated industries? ISO 27001 helps speed up deals.
• US-based SaaS startups? SOC 2 first, then ISO 27001 as they grow.
• Global enterprises? Both certifications are the norm.

In the end, it’s rarely SOC 2 or ISO 27001 — it’s which one you tackle first. Most companies growing across markets eventually need both to stay competitive and win bigger deals.

The Final Word on SOC 2 and ISO 27001

So, what’s the final word on SOC 2 vs ISO 27001? Simple: it’s not a fight—it’s a strategy. If you’re only operating in the U.S., SOC 2 gets the job done faster, cheaper, and checks all the boxes your clients are asking for. But if your ambitions go beyond borders—or even just flirt with Europe—you’ll need ISO 27001 in your corner. These certifications aren't competitors; they’re teammates in your trust-building playbook.

And here’s the kicker: with 80% of their controls overlapping, going after both isn’t double the work—it’s a smart, scalable move. Implementing them together can slash your compliance costs, speed up sales cycles, and make your security posture bulletproof.

In a world where 85% of enterprise buyers demand a cert before they even reply to your email, playing the “wait and see” game is just bad business. So whether you're a fast-scaling startup or a global powerhouse in the making, the real question isn't if you need SOC 2 or ISO 27001—it’s how soon can you get both.

Take control of compliance, reduce risk, and build trust with UprootSecurity — where GRC becomes the bridge between checklists and real breach prevention.
→ Book a demo today