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SOC 2 vs ISO 27001: Which One Should Your Tech Company Pursue First?
- Ben Ben Aderet
Introduction: Compliance Isn’t One-Size-Fits-All
If you’re scaling a tech-enabled business, chances are you’ve heard of both SOC 2 and ISO 27001. Maybe your enterprise prospects ask for SOC 2 reports. Or perhaps you’re eyeing global expansion and ISO 27001 comes up on every due diligence checklist.
Both frameworks are essential pillars of modern information security, but they serve different purposes—and choosing the right one at the right time can significantly impact your sales cycle, operational focus, and even international strategy (Baker Tilly, 2023).
In this article, we’ll help you cut through the noise and make an informed decision that aligns with your business stage, market, and long-term goals.
What is SOC 2?
SOC 2 is a U.S.-centric compliance framework developed by the American Institute of CPAs (AICPA). It’s designed to evaluate how organizations manage customer data across five Trust Service Criteria: security, availability, processing integrity, confidentiality, and privacy (AICPA, 2023).
The focus is on operational controls—how your systems and people work together to safeguard data in the cloud. SOC 2 is particularly relevant to SaaS companies, service providers, and startups selling into U.S.-based enterprises. The output is a detailed report issued by a licensed CPA firm, often under NDA, which helps prove your credibility during sales and procurement.
What is ISO 27001?
ISO/IEC 27001 is an international standard maintained by the International Organization for Standardization (ISO). It outlines how to establish, maintain, and continually improve an Information Security Management System (ISMS) (ISO, 2022).
ISO 27001 takes a holistic and risk-based approach to security. It’s process-heavy, involving asset inventories, risk registers, ongoing internal audits, and continuous improvement cycles. Certification is granted by an accredited third-party registrar—not a CPA—and it’s recognized worldwide.
If you’re working with global clients, government contracts, or regulated industries like finance or health, ISO 27001 signals maturity and international readiness.
SOC 2 vs ISO 27001: Key Differences
Dimension | SOC 2 | ISO 27001 |
Origin | U.S. (AICPA) | International (ISO/IEC) |
Output | Attestation report (Type I or II) | Formal certification (valid 3 years) |
Approach | Criteria-based, auditor-driven | ISMS-based, risk-driven |
Audit Body | Licensed CPA firm | Accredited certification body |
Recognition | Strong in North America | Global standard (esp. EMEA, APAC) |
Focus | Operational controls | Governance + continual improvement |
Client Use | NDA-limited, supports B2B sales cycle | Shareable certificate for tenders/global deals |
Which One Should You Pursue First?
It depends on your market, growth stage, and client demands. Here’s a strategic breakdown:
👉 Choose SOC 2 First if:
- Your clients are primarily in North America
- You’re an early-to-mid-stage SaaS company
- Your buyers are requesting a SOC 2 report in security reviews
- You want a faster time-to-value (SOC 2 Type I can be completed in weeks) (Drata, 2023)
Bonus: SOC 2 doesn’t require a full ISMS, making it more accessible to lean teams.
🌐 Choose ISO 27001 First if:
- You’re selling into Europe, Asia, or international markets
- Your contracts require formal certification
- You’re entering heavily regulated sectors like fintech, healthtech, or govtech
- You want to implement a risk-based, organization-wide security system (ISO, 2022)
ISO 27001 is slower to achieve, but offers a globally recognized badge of maturity.
1. Security
Protecting your systems and data from unauthorized access. Think firewalls, access controls, and incident response.
2. Availability
Ensuring your systems are available when promised—with resilience, redundancy, and uptime commitments.
3. Processing Integrity
Making sure your systems process data correctly, completely, and without delay. This is vital for platforms that handle financial or transactional data.
4. Confidentiality
Safeguarding sensitive business and customer information, often through encryption and access controls.
5. Privacy
Managing personal data in line with applicable privacy regulations like GDPR or CCPA.
You can choose which criteria to include based on your service model, but Security is always required.
What the SOC 2 Process Actually Looks Like
The SOC 2 journey can be broken down into four key phases:
1. Readiness Assessment
Identify gaps in your controls, policies, documentation, and tooling.
2. Remediation
Fix gaps and implement missing pieces. This often involves centralizing logs, writing policies, and rolling out security features.
3. Audit (Type I or Type II)
- Type I: A snapshot in time
- Type II: An audit over 3–12 months of actual control performance (AICPA, 2023)
4. Final Report
You receive a formal SOC 2 report issued by a licensed CPA firm, which you can share with clients under NDA.
Pro tip: Most startups start with Type I and move to Type II later (Vanta, 2023).
Can You Pursue Both?
Yes—and many companies do. In fact, the two can complement each other:
- ISO 27001 provides the underlying security management system
- SOC 2 demonstrates how controls are operating in practice (Drata, 2023)
At Consilium Labs, we help companies build their compliance roadmap in phases. Many start with SOC 2 Type I, layer in ISO 27001 readiness over the next 12–18 months, and eventually operate under both frameworks to meet varied buyer needs.
How Consilium Labs Helps You Decide
Choosing between SOC 2 and ISO 27001 isn’t just a technical question—it’s a strategic one. Our experts guide you through:
- Market alignment: Who are you selling to today and tomorrow?
- Internal capacity: What systems, people, and policies are in place?
- Timeline and urgency: Are you up against a deal deadline or strategic inflection point?
- Future readiness: How will this decision impact scaling and product trust?
With our automation-first approach and global auditing expertise, we don’t just help you comply—we help you compete.
The Bottom Line
Both SOC 2 and ISO 27001 are valuable—but your business strategy should determine which comes first.
If you’re aiming for U.S. enterprise trust, start with SOC 2.
If you’re building for global credibility and structured governance, ISO 27001 may be the better entry point.
And if you want both? We’ll help you design a smart, phased approach.
Need help deciding the right path for your compliance roadmap?
Let’s talk.
Book a strategic consultation with Consilium Labs today and turn compliance into a competitive advantage.
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