In today’s hyper-connected world, trust isn’t just a value—it’s leverage. Every day, companies exchange sensitive information with partners, customers, and third-party vendors. And the question that keeps popping up: How do we know that data is secure?
With cyberattacks on the rise and regulations tightening across the board, it’s no longer enough to say, “We take security seriously.” Organizations are being asked to prove it—and the stakes go well beyond compliance. We’re talking about competitive edge and long-term credibility.
Enter two heavyweights: SOC 2 and ISO 27001. Both are widely respected, both deal with information security—but they’re not interchangeable. Each has its own lens, structure, and ideal use case.
So, which one’s right for you? Let’s unpack that.
1. SOC 2 vs. ISO 27001: A Quick Intro
According to Gartner, by 2026, nearly 60% of organizations will rely on cybersecurity risk profiles when selecting vendors. That’s not a trend—it’s a shift in how business relationships form.
Frameworks like SOC 2 and ISO 27001 provide external proof that you’re not just talking security—you’re building it into your DNA. But while they share a common goal, they come from different worlds.
- SOC 2 is an American-originated attestation, ideal for tech-focused companies.
- ISO 27001 is an international certification standard built around managing information security risks at a systems level.
2. What Is SOC 2?
Definition and Purpose
SOC 2 stands for System and Organization Controls 2, developed by the AICPA (American Institute of Certified Public Accountants). It’s not a checklist; it’s a framework that evaluates whether your security controls are actually working—especially when handling sensitive customer data.
If you’re a U.S.-based SaaS provider, especially in fintech or healthcare, chances are your clients are already asking for a SOC 2 report.
The Five Trust Service Criteria
Every SOC 2 assessment is built around these core areas:
- Security (mandatory): Is your system protected from unauthorized access?
- Availability: Is your system reliable and up when promised?
- Processing Integrity: Is data handled accurately and in a timely fashion?
- Confidentiality: Can you keep sensitive info under wraps?
- Privacy: Are you complying with data privacy obligations?
You must include Security. The rest are optional—based on your service model.
SOC 2 Type I vs. Type II
- Type I: Assesses whether your controls are properly designed at a specific moment in time.
- Type II: Evaluates whether those controls actually work—over a sustained period (typically 6–12 months).
Type II is the real credibility booster.
3. What Is ISO 27001?
Definition and Purpose
ISO/IEC 27001 is a global standard from the International Organization for Standardization (ISO) and the International Electrotechnical Commission (IEC). It’s all about establishing and continuously improving your Information Security Management System (ISMS).
Unlike SOC 2, ISO 27001 isn’t just an audit—it leads to a formal certification, issued by an accredited body. Think of it as your security blueprint, complete with documentation and governance.
The Annex A Controls and ISMS
To get certified, you’ll need to:
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Define the Scope of Your ISMS
Clearly determine the boundaries and applicability of your Information Security Management System (ISMS), including the assets, processes, and locations it will cover. -
Conduct a Thorough Risk Assessment
Identify, analyze, and evaluate information security risks to understand potential threats and vulnerabilities that could impact your organization. -
Implement Relevant Controls from Annex A
Annex A of ISO/IEC 27001 contains 93 controls divided into four main categories. Implement the controls relevant to your organization:-
Organizational Controls – Policies, procedures, and governance measures.
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People Controls – Awareness, training, and access management for staff.
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Physical Controls – Measures to protect physical assets and infrastructure.
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(The fourth category is Technological/Technical Controls, ensure inclusion if needed.)
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The controls cover everything from access policies and asset management to encryption, incident response, and legal compliance.
The Certification Process
Here’s what the ISO 27001 journey typically looks like:
- Gap Analysis – Figure out where you’re falling short.
- Implementation – Build your security controls and documentation.
- Internal Audit – Test your readiness.
- Stage 1 Audit – External auditors review your paperwork.
- Stage 2 Audit – Auditors evaluate your implementation in real life.
- Certification – If you pass, you’re good for three years (with annual check-ins).
4. SOC 2 vs. ISO 27001: Side-by-Side Comparison
|
Feature |
SOC 2 |
ISO 27001 |
|
Origin |
U.S. (AICPA) |
International (ISO/IEC) |
|
Nature |
Attestation (Audit Report) |
Certification (Formal Credential) |
|
Focus |
Trust Criteria |
Risk-Based Management System |
|
Recognition |
Primarily North America |
Global |
|
Approach |
Flexible, outcome-focused |
Structured, prescriptive |
|
Duration |
2–3 months (Type I); 6–12 (Type II) |
6–12 months for full certification |
|
Cost |
~$20K–$80K+ |
~$40K–$100K+ |
|
Output |
SOC 2 Report |
ISO 27001 Certificate |
|
Renewal |
Annual audit |
3-year cycle w/ annual surveillance |
5. Where SOC 2 and ISO 27001 Overlap
Despite their differences, these two frameworks share several fundamentals:
- Risk-Based Thinking: Both emphasize identifying and addressing security risks.
- Independent Review: Whether it’s an audit or certification, a third party must verify your controls.
- Control Parallels: Many SOC 2 requirements map directly to ISO 27001 controls.
- Continuous Improvement: Neither framework is a one-and-done exercise.
6. Pros & Cons of SOC 2
Pros
- Strong brand recognition in U.S. tech circles.
- Flexible—lets you tailor controls to your operations.
- Type II reports carry weight with investors and clients.
- Popular among SaaS and cloud-first businesses.
Cons
- Less traction internationally.
- No formal “certification”—just an auditor’s report.
- Subjectivity in how auditors interpret requirements.
- Can be pricey for smaller startups.
7. Pros & Cons of ISO 27001
Pros
- International credibility—trusted across regions and industries.
- Structured ISMS framework encourages long-term security planning.
- Covers the full spectrum: people, process, and tech.
- Three-year validity with lighter annual reviews.
Cons
- Heavy on documentation and formal processes.
- More rigid, which can slow agile teams.
- Higher initial time and cost investment.
8. How to Choose Between SOC 2 and ISO 27001
Let your context guide you:
By Customer Base:
- U.S.-centric, especially B2B SaaS? → Go with SOC 2.
- Serving clients across Europe, Asia, or regulated sectors? → Choose ISO 27001.
By Industry:
- Tech / SaaS / Fintech: SOC 2 is often the first ask.
- Finance / Healthcare / Manufacturing: ISO 27001 carries more weight.
By Growth Stage:
- Startups and SMBs: SOC 2 Type I offers a faster route to compliance credibility.
- Scaling or Enterprise Orgs: ISO 27001 helps institutionalize security practices.
By Future Plans:
- Planning a global expansion? ISO 27001 will open more doors.
- U.S. customer acquisition your primary goal? SOC 2 first, ISO 27001 later.
9. Can You Do Both? Absolutely.
Many companies pursue dual compliance, especially if they’re scaling fast or serving a diverse customer base.
Fortunately, there’s overlap. Controls in ISO 27001’s Annex A often support SOC 2’s Trust Service Criteria—and vice versa. With smart mapping and tooling, you can streamline the process and avoid reinventing the wheel.
It’s not uncommon to start with SOC 2 and layer in ISO 27001 once you hit international markets or move into more heavily regulated spaces.
10. Automating Compliance: Why AI & Automation Matter
Manual compliance is becoming a liability. It’s slow, reactive, and prone to gaps.
Platforms like Akitra Andromeda® are leading a new wave of compliance automation, helping businesses:
- Monitor cloud environments in real time.
- Auto-generate audit-ready evidence.
- Cross-map controls between frameworks.
- Cut time-to-audit from months to weeks.
As compliance becomes more operational than ceremonial, automation is no longer a nice-to-have—it’s a must.
11. Final Thoughts: It’s Not Either/Or
Both SOC 2 and ISO 27001 help you earn trust. They just approach it differently.
If you’re targeting U.S. enterprise customers and want to show you’re security-conscious—start with SOC 2.
If you’re going international or building long-term governance into your culture—ISO 27001 is your path.
And if you want to cover all your bases? Pursue both, intelligently.
Security isn’t just about protecting data. It’s about proving that you know how to do it—and doing it in a way that customers, partners, and regulators recognize.
Bottom Line: Choose the standard that fits your audience today—and don’t rule out expanding tomorrow.
Security, AI Risk Management, and Compliance with Akitra!
In the competitive landscape of SaaS businesses, trust is paramount amidst data breaches and privacy concerns. Akitra addresses this need with its leading AI-powered Compliance Automation platform. Our platform empowers customers to prevent sensitive data disclosure and mitigate risks, meeting the expectations of customers and partners in the rapidly evolving landscape of data security and compliance. Through automated evidence collection and continuous monitoring, paired with customizable policies, Akitra ensures organizations are compliance-ready for various frameworks such as SOC 1, SOC 2, HIPAA, GDPR, PCI DSS, ISO 27001, ISO 27701, ISO 27017, ISO 27018, ISO 9001, ISO 13485, ISO 42001, NIST 800-53, NIST 800-171, NIST AI RMF, FedRAMP, CCPA, CMMC, SOX ITGC, and more such as CIS AWS Foundations Benchmark, Australian ISM and Essential Eight etc. In addition, companies can use Akitra’s Risk Management product for overall risk management using quantitative methodologies such as Factorial Analysis of Information Risks (FAIR) and qualitative methods, including NIST-based for your company, Vulnerability Assessment and Pen Testing services, Third Party Vendor Risk Management, Trust Center, and AI-based Automated Questionnaire Response product to streamline and expedite security questionnaire response processes, delivering huge cost savings. Our compliance and security experts provide customized guidance to navigate the end-to-end compliance process confidently. Last but not least, we have also developed a resource hub called Akitra Academy, which offers easy-to-learn short video courses on security, compliance, and related topics of immense significance for today’s fast-growing companies.
Our solution offers substantial time and cost savings, including discounted audit fees, enabling fast and cost-effective compliance certification. Customers achieve continuous compliance as they grow, becoming certified under multiple frameworks through a single automation platform.
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