The Two Most Common Questions
Every SaaS company expanding into enterprise sales faces the same two questions: “Do you have a SOC 2?” and “Are you ISO 27001 certified?” The natural follow-up is always: which one should we get first?
The answer depends on your market, your customers, and your growth trajectory. But understanding how these two standards actually differ will make the decision straightforward.
What Each Standard Does
SOC 2
SOC 2 is an attestation framework developed by the AICPA. A licensed CPA firm (your auditor) examines your controls against the Trust Services Criteria and issues a report, a SOC 2 report, that attests to whether your controls are designed effectively (Type I) or operating effectively over a period of time (Type II).
The output is a detailed report that your customers can read. It describes your system, your controls, and the auditor’s findings. It’s specific to your organization and valid for the period covered.
ISO 27001
ISO 27001 is a management system standard published by the International Organization for Standardization. An accredited certification body audits your Information Security Management System (ISMS) and, if it meets the standard’s requirements, issues a certificate.
The output is a certificate stating that your ISMS conforms to ISO 27001. It doesn’t describe your specific controls in detail. The certificate is valid for three years, subject to annual surveillance audits.
Key Differences
Scope of Evaluation
SOC 2 evaluates specific controls against the Trust Services Criteria for a defined system. You define the scope (which services, which infrastructure), and the auditor tests those specific controls.
ISO 27001 evaluates your entire management system for managing information security. It’s broader: risk assessment methodology, leadership commitment, internal audit, management review, and continual improvement are all in scope alongside the actual security controls.
Geographic Recognition
SOC 2 is predominantly recognized in the United States and Canada. International customers may accept it but often don’t view it as equivalent to ISO 27001.
ISO 27001 is recognized globally. It carries weight in Europe, Asia-Pacific, the Middle East, and increasingly in the US market as well.
Ongoing Obligations
SOC 2 requires a new audit each year. There’s no ongoing certification to maintain between audits, though your controls obviously need to keep operating.
ISO 27001 requires annual surveillance audits and a full recertification every three years. You also need to conduct internal audits and management reviews on an ongoing basis. The management system runs continuously.
Prescriptiveness
SOC 2 Trust Services Criteria are principle-based. They describe what outcomes your controls should achieve but don’t prescribe specific implementations.
ISO 27001 Annex A provides a reference set of 93 controls, though you select which ones apply based on your risk assessment. The management system clauses are more prescriptive about the processes you need to have in place.
Cost and Timeline
SOC 2 Type II typically takes 6-12 months from start to report, depending on readiness. Audit costs for SaaS companies typically range from $20K to $60K annually.
ISO 27001 typically takes 6-8 months to certification. Certification body fees vary but typically run $15K to $40K for the initial certification, with lower costs for surveillance audits. You’ll also need internal audit capability, either in-house or outsourced.
Where They Overlap
The overlap is substantial, typically 60-70% of controls:
- Access control and identity management
- Encryption in transit and at rest
- Change management and secure development
- Incident detection and response
- Vendor and third-party management
- Security awareness training
- Business continuity and disaster recovery
- Logging and monitoring
- Vulnerability management
If you build a solid security program for one, you’re well on your way to the other.
Decision Framework
Start with SOC 2 if:
- Your primary market is US enterprise customers
- Prospects are specifically asking for a SOC 2 report
- You want a faster path to a deliverable (the report)
- You don’t yet have the organizational maturity for a full management system
Start with ISO 27001 if:
- You’re selling internationally or to government
- European or APAC customers are your growth market
- You want a recognized certification (not just a report)
- You plan to add ISO 27701, ISO 42001, or other ISO standards later
- Your customers are explicitly asking for ISO certification
Pursue Both Simultaneously if:
- You’re already selling to both US and international markets
- You have the budget and bandwidth to manage both programs
- You want to maximize the value of control implementation (build once, satisfy both)
The Unified Approach
The smartest strategy for companies that need both is building a unified compliance program from day one. Design your controls to satisfy both SOC 2 Trust Services Criteria and ISO 27001 Annex A requirements. Maintain a single control framework with mappings to both standards. Collect evidence once and reuse it across audits.
This approach typically saves 40-60% of the effort compared to managing two independent compliance programs. The controls are largely the same. The evidence is largely the same. Only the audit format and cadence differ.
A Common Path
Many SaaS companies follow this trajectory:
- Start with SOC 2 Type I to satisfy immediate customer requests
- Move to SOC 2 Type II to demonstrate operating effectiveness
- Add ISO 27001 using the control foundation already built for SOC 2
- Expand from there to ISO 27701 (privacy), ISO 42001 (AI governance), HIPAA, or other frameworks as business needs dictate
Each addition becomes easier because you’re building on an existing foundation rather than starting from scratch.
At Concerto, we help SaaS companies design compliance programs that scale across frameworks from day one. Whether you’re starting with SOC 2, ISO 27001, or both, we build the unified foundation that makes future expansion efficient. Schedule a consultation to talk through the right strategy for your business.
