ISO 27001 vs SOC 2: Which to Choose & When to Do Both

Quick Overview

ISO 27001 and SOC 2 are both widely respected security frameworks, but they serve different purposes and audiences. Understanding these differences helps you choose the right path for your organization.

Side-by-Side Comparison

When to Choose ISO 27001

ISO 27001 is typically the better choice when:

Your Customers Are Global

ISO 27001 is recognized worldwide. If you sell to customers in Europe, Asia, Middle East, or other regions, they will understand and accept ISO 27001. SOC 2 is less recognized outside North America.

You Need a Management System

ISO 27001 requires a formal Information Security Management System with governance structures, policies, risk management, internal audit, and management review. This systematic approach embeds security into organizational culture.

You Want a Certificate

ISO 27001 results in a certificate you can display publicly. This is useful for marketing, tender responses, and public trust. SOC 2 reports are typically shared only under NDA.

You Have Regulatory Drivers

Certain regulations reference or accept ISO 27001:

• GDPR mentions "certification mechanisms" (ISO 27001 is recognized)
• Some government contracts require ISO 27001
• EU NIS Directive references ISO 27001
• Some industry regulations accept ISO 27001 as evidence of security

You Want Longevity

ISO 27001 certificates are valid for 3 years with annual surveillance. SOC 2 Type II reports cover a specific period (typically 12 months) and need to be renewed continuously.

When to Choose SOC 2

SOC 2 is typically the better choice when:

Your Customers Are US-Based

SOC 2 is the de facto standard for US enterprise customers evaluating SaaS vendors. US procurement teams often specifically request SOC 2 Type II reports.

You're a Service Organization

SOC 2 is designed for service organizations - companies that process data on behalf of customers. It's particularly relevant for:

• SaaS providers
• Cloud service providers
• Data centers
• Managed service providers
• Payment processors

Your Customers Want Detailed Reports

A SOC 2 Type II report includes:

• Detailed description of your system
• Control descriptions
• Test procedures performed
• Results of testing
• Any exceptions identified

This level of detail satisfies customers who want to see exactly what was tested and what the results were.

You Need Flexible Criteria

SOC 2 has five Trust Services Criteria:

• Security: Protection against unauthorized access (required)
• Availability: System availability as committed
• Processing Integrity: Complete, valid, accurate processing
• Confidentiality: Protection of confidential information
• Privacy: Personal information handling

You can choose which criteria to include based on customer requirements (though Security is always included).

When to Do Both

Many organizations pursue both ISO 27001 and SOC 2. This makes sense when:

You Have Mixed Customer Base

If you serve both US enterprises (who want SOC 2) and global/European customers (who want ISO 27001), you may need both to satisfy all customers.

Different Customers Ask for Different Reports

Some procurement teams specifically require one or the other. Having both eliminates the "we don't accept that" objection.

You Want Maximum Credibility

Having both demonstrates comprehensive security commitment. The certifications validate different aspects:

• ISO 27001: You have a functioning management system
• SOC 2: Your specific controls have been tested and verified

Strategic Growth Plans

If you're expanding from North America to global markets (or vice versa), having both positions you for either market.

Control Overlap

The good news: there's significant overlap between ISO 27001 and SOC 2. Organizations that achieve one are typically 60-70% of the way to the other.

Common Areas

• Access control and identity management
• Change management
• Incident response
• Risk assessment
• Vendor management
• Encryption and data protection
• Physical security
• Security awareness
• Business continuity

Key Differences

• ISO 27001: Emphasizes management system, documentation, internal audit, management review
• SOC 2: Emphasizes control testing, operating effectiveness over time, detailed exception reporting

Sequencing: Which First?

If you're doing both, the optimal sequence depends on your situation:

ISO 27001 First (Recommended for Most)

Benefits:

• Establishes management system foundation
• Forces comprehensive risk assessment
• Creates documentation infrastructure
• Builds security culture
• SOC 2 becomes easier with ISMS in place

SOC 2 First

May make sense if:

• Urgent US customer requirement
• Need quick market access
• Already have strong controls, just need attestation

Simultaneous

Possible with good planning:

• Implement controls once, evidence for both
• More efficient than sequential
• Requires experienced guidance
• Higher initial effort but faster overall

For most organizations, we recommend starting with ISO 27001. The management system approach creates a sustainable security program that makes SOC 2 much easier. Going SOC 2 first often results in a "checkbox" approach that requires rework when ISO 27001 is later pursued.