SOC 2 vs ISO 27001: Which Certification Do You Need?

Last updated: November 20, 2025 | Reading time: 9 minutes

If your business provides services to other companies (SaaS, cloud hosting, payment processing), your customers will eventually ask for proof of your security. The two most common and critical certifications you’ll encounter are **SOC 2** and **ISO 27001**. Choosing the right one depends heavily on your location and client base.

Understanding SOC 2 (Service Organization Control 2)

SOC 2 is an auditing procedure developed by the American Institute of CPAs (AICPA). It's primarily focused on how a service organization handles customer data based on five **Trust Services Criteria (TSC)**:

• **Security:** Protecting the system against unauthorized access. (This is mandatory)
• **Availability:** Ensuring the system is available for operation and use as committed.
• **Processing Integrity:** Ensuring system processing is complete, accurate, and authorized.
• **Confidentiality:** Protecting information designated as confidential.
• **Privacy:** Protecting personal information in accordance with privacy commitments.

SOC 2 reports come in two types: **Type I** (a snapshot of controls at a specific date) and **Type II** (an audit of controls over a period, typically 6-12 months), with Type II being the more comprehensive and demanded option.

Understanding ISO 27001

**ISO/IEC 27001** is the leading international standard for an **Information Security Management System (ISMS)**. Unlike SOC 2, which is an auditing standard, ISO 27001 is a framework. It helps organizations of any size and industry manage and protect their information assets. Key aspects include:

• **Risk-Based Approach:** Requires continuous identification, assessment, and treatment of information security risks.
• **Annex A Controls:** Includes a comprehensive list of security controls (like physical security, access control, and HR security) that the organization must consider implementing.
• **Global Recognition:** As an international standard, it is widely recognized and respected worldwide.

The Head-to-Head Comparison

Here’s a breakdown to help you decide which path to pursue in 2026:

Which Certification Do You Need?

The choice is often driven by your customers' requirements:

✅ **Choose SOC 2 Type II if:**

Your primary customer base is in the **US and North America**, and you need to demonstrate that your systems are reliable and secure over a long period. It’s ideal for high-growth US-based SaaS companies.

✅ **Choose ISO 27001 if:**

You have a **global customer base**, especially in Europe, or if you need a widely accepted framework to structure your internal security processes from the ground up. It’s often the first stop for establishing an ISMS.

Additional Resources

• Complete Guide to Website Security in 2026
• Understanding SSL/TLS Certificates
• How Threat Intelligence Protects Your Business
• Free Security Assessment Tool