Do You Need SOC 2 or ISO 27001? The Smart Way to Decide

If you’re a growing SaaS, tech, or data-driven organization, chances are customers or partners have already asked: “Are you SOC 2 certified? What about ISO 27001?” The pressure to demonstrate security assurance is only increasing. But what’s the difference between these two frameworks, which one fits your business, and is it ever worth pursuing both?

Let’s break down how to decide, highlight tangible business benefits, and offer a clear path for getting started.

SOC 2 vs. ISO 27001: Key Differences at a Glance

• Audience: SOC 2 is U.S.-centric; ISO 27001 is global.

• Focus: SOC 2 emphasises operational controls; ISO 27001 emphasises governance and a risk-based management system.

• Output: SOC 2 delivers an audit report; ISO 27001 delivers a certification.

• Effort: SOC 2 Type I can be achieved in months; ISO 27001 often requires a more involved implementation journey.

SOC 2 is particularly popular among North American SaaS providers; ISO 27001 carries more weight globally and sets up a repeatable security management system (ISMS) that signals operational maturity.

Deciding: SOC 2, ISO 27001, or Both?

To make the right choice, ask:

• Who are your customers and where are they?

  • US-based clients often request SOC 2. International or enterprise customers may require ISO 27001 for partnerships.

• What are the requirements in RFPs and contracts?

  • If clients explicitly demand a SOC 2 report or ISO 27001 certificate, prioritize those.

• Industry focus and long-term growth plans:

  • SaaS and cloud services often start with SOC 2 for agility and market entry.

  • Firms planning to expand globally or serve heavily regulated sectors often benefit from ISO 27001.

• Security program maturity:

  • SOC 2 can be a fast, focused “first step.”

  • ISO 27001 requires building or formalizing a comprehensive information security management system suited to organizations with more established policies and teams.

• Is there overlap with both?

  • Yes, many controls and objectives align. Companies often start with SOC 2, then layer in ISO 27001 as they grow globally, leveraging work already done for one framework to simplify the other.

Tangible Business Benefits and the ROI Case

• Faster deal cycles: Having the necessary report/certification at hand prevents delays and unlocks new markets or larger deals.

• Clear proof of diligence: Both frameworks reassure customers and investors that you take security seriously.

• Reduced operational risk: Adopting best practices for processes, documentation, and incident response means less chance of fines, breaches, or public fallout.

• Continuous improvement: ISO 27001’s ISMS focus ensures you don’t just “check the box” once, but build better security over time which downstream supports easier SOC 2 renewals.

Where to Start: Practical Steps

1. Audit Client Expectations:
   List current and potential customer requirements by geography and vertical.

2. Assess Internal Maturity:
   Inventory your existing security policies, controls, and risk management processes.

3. Decide Your Priority:

   • Choose SOC 2 for North American focus, SaaS agility, or if you need a quicker proof point.

   • Choose ISO 27001 for enterprise clients, international expansion, or foundational ISMS development.

   • Pursue both if you’re scaling rapidly and want to future-proof your compliance programs.

4. Get Buy-In and Budget:
   Secure leadership support and estimate resource needs both projects typically take several months and require cross-team coordination.

5. Leverage Overlap:
   Start with a risk assessment, centralize evidence (policies, logs, vendor assessments), and use shared documentation to reduce duplicate work for whichever standard comes next.

Pro Tip:
If you’re uncertain which path best fits your roadmap, consult with a vCISO or compliance advisor that has helped similar growth-stage companies navigate both frameworks. This tailored insight can help accelerate both compliance and ROI.

Closing Thoughts

The right compliance framework unlocks credibility, growth, and customer trust. If you plan for both SOC 2 and ISO 27001 strategically, you’ll maximize your investment, keep future options open, and build a program that protects your business for the long term.