SOC 2 vs ISO 27001: Key Differences

If you are a fast-growing startup or SaaS company, customers and prospects will eventually ask how you protect sensitive data. Security questionnaires, vendor risk reviews, and enterprise procurement processes all lead to the same question: can you prove your security posture?

SOC 2 and ISO/IEC 27001 are two of the most widely recognized security and compliance frameworks used to demonstrate strong information security practices. While they share similar goals, they serve different business needs and markets.

In this guide, we break down SOC 2 vs ISO 27001, explain their differences, and help you decide which framework makes the most sense for your organization.

What Is SOC 2?

SOC 2 (System and Organization Controls 2) is a compliance framework developed by the American Institute of Certified Public Accountants (AICPA). It evaluates how organizations protect customer data using controls aligned with the Trust Services Criteria (TSC):

• Security
• Availability
• Processing Integrity
• Confidentiality
• Privacy

SOC 2 is validated through an independent audit conducted by a licensed CPA firm. After the audit, your organization receives a SOC 2 report, which is commonly requested by customers during vendor security reviews.

SOC 2 Report Types

• SOC 2 Type I: Assesses whether controls are designed correctly at a specific point in time
• SOC 2 Type II: Evaluates whether controls operate effectively over a defined period, usually 6–12 months

SOC 2 is widely considered the default standard for North American SaaS and technology companies.

What Is ISO/IEC 27001?

ISO/IEC 27001 is an international standard for establishing, implementing, and maintaining an Information Security Management System (ISMS). It is published by the International Organization for Standardization (ISO) and the International Electrotechnical Commission (IEC).

Unlike SOC 2, ISO 27001 focuses heavily on management systems, governance, and continuous improvement. Certification is binary: you either meet the requirements or you do not.

Key Components of ISO 27001

• A documented ISMS
• Formal risk assessments
• Management reviews and internal audits
• A Statement of Applicability mapping security controls
• Implementation of applicable Annex A controls

ISO 27001 is recognized globally and is often required for organizations operating or selling outside North America.

SOC 2 vs ISO 27001: Key Differences Explained

Although both frameworks aim to improve data security and build trust, there are several important differences.

1. Flexibility vs Structure

SOC 2 is outcome-based. Organizations can design controls that fit their environment as long as they meet the Trust Services Criteria. This flexibility makes SOC 2 especially appealing to startups and fast-growing companies.

ISO 27001 is more prescriptive. It requires formal documentation, management oversight, internal audits, and consistent processes. Auditors expect evidence that the ISMS is operating exactly as defined.

2. Geographic Relevance

• SOC 2 is most commonly expected by U.S. and North American customers
• ISO 27001 is preferred internationally, particularly in Europe, Asia, and global enterprise environments

Many companies view these frameworks as business “currency” depending on where their customers are located.

3. Timeline to Achieve Compliance

• SOC 2 Type I: Often achievable within 2–4 months
• SOC 2 Type II: Typically 6–12 months
• ISO 27001: Usually 6–12 months from project start to certification

SOC 2 generally offers a faster path to meeting immediate sales requirements.

4. Cost Considerations

Audit costs vary by organization size and scope, but typical ranges include:

• SOC 2 Type I: $10,000–$20,000
• SOC 2 Type II: $30,000–$60,000+
• ISO 27001 Certification: $20,000–$50,000+

ISO 27001 often requires more internal effort due to documentation, governance, and ISMS maintenance.

5. Ongoing Maintenance

SOC 2 operates on an annual audit cycle to maintain a current report.

ISO 27001 follows a three-year certification cycle:

• Year 1: Initial certification audit
• Years 2–3: Surveillance audits
• End of Year 3: Recertification audit

Both require continuous effort, but ISO 27001 places more emphasis on long-term management processes.

6. Audit Output

• SOC 2 results in a detailed audit report (often 50+ pages) that customers can review
• ISO 27001 results in a certificate; audit findings are typically not shared externally

Some customers prefer SOC 2’s transparency, while others accept ISO certificates as sufficient proof.

SOC 2 vs ISO 27001 Comparison Table

Feature	SOC 2	ISO/IEC 27001
Governing Body	AICPA (American Institute of CPAs)	ISO (International Organization for Standardization)
Primary Focus	Security controls and data protection outcomes	Information Security Management System (ISMS)
Audit Output	Detailed SOC 2 report (50–100+ pages)	ISO 27001 certificate
Pass / Fail	Can be qualified or unqualified	Binary certification (pass or fail)
Control Structure	Trust Services Criteria (flexible, outcome-based)	Annex A controls (structured, prescriptive)
Geographic Preference	Primarily North America	Globally recognized
Typical Timeline	Type I: 2–4 months Type II: 6–12 months	6–12 months
Audit Frequency	Annual audit required	3-year certification cycle with annual surveillance
Ideal For	SaaS, startups, tech companies selling in the U.S.	International companies and regulated environments
Customer Transparency	Customers can review report details	Customers usually only see the certificate
Flexibility	High	Moderate to low
Cost Range (Audit Only)	Type I: $10k–$20k Type II: $30k–$60k+	$20k–$50k+

How to Choose Between SOC 2 and ISO 27001

Choose SOC 2 If:

• Most of your customers are U.S.-based
• You are a SaaS or technology company
• Enterprise prospects request SOC 2 specifically
• You need a faster compliance win to unblock sales

Choose ISO 27001 If:

• You operate internationally or sell heavily into Europe
• Customers require a formal ISMS
• You need a globally recognized security certification

When Both Make Sense

Many organizations eventually pursue both frameworks. There is significant control overlap between SOC 2 and ISO 27001, but pursuing both should be driven by revenue and market expansion, not fear of missing out.

Why Many Companies Start with SOC 2

For most startups and growth-stage companies, SOC 2 offers the strongest ROI early on. It is flexible, faster to achieve, and directly aligned with North American buyer expectations.

SOC 2 also allows tighter scoping, enabling teams to certify their core production systems first while continuing to mature internal processes.

How Polimity Helps with SOC 2 and ISO 27001

Polimity helps growing companies design, implement, and maintain scalable security and compliance programs across SOC 2 and ISO 27001.

With Polimity, organizations can:

• Identify the right framework based on sales and growth goals
• Design controls aligned with real-world operations
• Prepare for audits with structured readiness assessments
• Reduce compliance overhead through automation and expert guidance
• Maintain compliance without slowing down engineering or product teams

Whether you are pursuing SOC 2, ISO 27001, or planning for both, Polimity helps turn compliance into a business enabler rather than a blocker.

SOC 2 vs ISO 27001: Frequently Asked Questions

What is the main difference between SOC 2 and ISO 27001?

The main difference is scope and structure. SOC 2 evaluates how well your security controls operate against specific criteria, while ISO 27001 focuses on building and maintaining a formal security management system (ISMS).

Is SOC 2 easier than ISO 27001?

SOC 2 is generally considered more flexible, especially for startups and fast-growing companies. ISO 27001 requires more formal documentation, governance processes, and ongoing internal audits.

Which is better for SaaS companies?

Most SaaS companies start with SOC 2, particularly if their customers are based in North America. Enterprise buyers often expect SOC 2 reports during vendor security reviews.

Do I need SOC 2 if I already have ISO 27001?

Sometimes. While there is significant overlap, many U.S. customers still request SOC 2 specifically. ISO 27001 does not always replace SOC 2 in sales cycles.

Can SOC 2 and ISO 27001 be done together?

Yes. Many organizations pursue both, but it is usually best to start with one framework based on revenue needs. SOC 2 and ISO 27001 share roughly 70–80% control overlap.

Is ISO 27001 required for GDPR compliance?

No. ISO 27001 supports GDPR requirements but does not guarantee GDPR compliance. GDPR is a legal regulation, while ISO 27001 is a security management standard.

How long does SOC 2 certification last?

SOC 2 reports are valid for a defined audit period, typically one year. To maintain compliance, organizations complete a new audit annually.

Is SOC 2 mandatory?

SOC 2 is not legally required, but it is often commercially required by enterprise customers, partners, and regulated industries.

Which framework do enterprise customers prefer?

It depends on geography. U.S.-based enterprises usually prefer SOC 2, while international enterprises often accept or require ISO 27001.

Final Thoughts

SOC 2 and ISO 27001 are not competing frameworks; they are tools designed for different markets and growth stages.

SOC 2 helps you win in North America with speed and flexibility.
ISO 27001 positions you for global credibility and long-term governance.

The right choice depends on where your customers are, how fast you need results, and which framework will unlock revenue today.