ISO 27017 vs SOC 2 for Cloud: Which Buyers Ask For

Quick Overview

Cloud service providers and organizations that process data in the cloud face a common question from customers: "What security assurance can you provide?" The two frameworks most frequently requested are ISO 27017 (as part of ISO 27001 certification) and SOC 2. Understanding the differences between these frameworks helps you make strategic decisions about which to pursue — and in what order.

What Each Framework Covers

ISO 27017 (via ISO 27001)

ISO 27017 provides cloud-specific security controls that extend ISO 27001 and ISO 27002. When you achieve "ISO 27001 with ISO 27017," your certification demonstrates:

• A functioning Information Security Management System (ISMS) covering cloud services
• Implementation of 93 Annex A controls with cloud-specific interpretation where relevant
• Implementation of 7 additional cloud-specific controls (CLD controls)
• Documented shared responsibility model between CSP and customers
• Cloud-specific risk assessment and treatment
• Controls for virtual environment segregation, VM hardening, cloud monitoring, and administrative security

SOC 2

SOC 2 is an attestation framework developed by AICPA for service organizations. When you achieve a SOC 2 Type II report, it demonstrates:

• Controls designed and operating effectively against selected Trust Services Criteria
• Security (always included) — protection of systems against unauthorized access
• Availability (optional) — systems available for operation as committed
• Processing Integrity (optional) — processing is complete, valid, accurate, and timely
• Confidentiality (optional) — information designated as confidential is protected
• Privacy (optional) — personal information is collected, used, retained, disclosed, and disposed of per notice
• Detailed description of the service organization's system
• Test results for each control over the examination period

Geographic Preferences

The strongest differentiator between ISO 27017 and SOC 2 is geographic preference:

Where ISO 27017 (via ISO 27001) Is Preferred

• Europe: ISO standards are deeply embedded in procurement practices, regulatory expectations, and contractual requirements across the EU
• Middle East: Government and enterprise procurement frequently mandate ISO certifications
• Asia-Pacific: Japan, Singapore, Australia, and India have strong ISO adoption in enterprise procurement
• Global enterprises: Multinational companies with European headquarters typically prefer ISO
• Government sector: Many government procurement frameworks reference ISO standards

Where SOC 2 Is Preferred

• United States: SOC 2 is the de facto standard for vendor security assessment in US enterprise procurement
• Canada: Strong SOC 2 adoption, aligned with US market practices
• US-influenced markets: Organizations with US parent companies or US-based customers
• Venture-backed startups: The VC and startup ecosystem predominantly uses SOC 2 as a market-readiness signal
• Financial services (US): US financial institutions commonly require SOC 2 from service providers

Buyer Expectations by Market Segment

Enterprise SaaS Buyers (Global)

Global enterprise buyers increasingly expect both. However, priorities differ by headquarters location:

• US-headquartered: SOC 2 Type II required; ISO 27001 with ISO 27017 is a strong differentiator
• EU-headquartered: ISO 27001 with ISO 27017 required; SOC 2 accepted as additional assurance
• APAC-headquartered: ISO 27001 preferred; ISO 27017 adds cloud credibility; SOC 2 less commonly requested

Regulated Industries

Regulatory drivers further shape expectations:

• Financial services (EU/APAC): ISO 27001 + ISO 27017 aligns with EBA guidelines and MAS TRM
• Financial services (US): SOC 2 Type II is the standard expectation; SOC 1 also commonly required
• Healthcare (US): SOC 2 with HIPAA controls; ISO 27001 increasingly accepted
• Government: ISO 27001 + ISO 27017 for most international government procurement; FedRAMP or StateRAMP for US government

SMB and Startup Buyers

Smaller buyers tend to have simpler requirements:

• US SMBs often ask for SOC 2 because it is what they know
• International SMBs may accept either ISO 27001 or SOC 2
• Increasingly, trust center pages that display both certifications satisfy most SMB requirements

Side-by-Side Comparison

Key Differences That Matter

1. Cloud Specificity

ISO 27017 was purpose-built for cloud security. Its 7 CLD controls address risks like multi-tenant segregation, VM hardening, and shared responsibility — topics that SOC 2 may cover but does not explicitly require. If your customers specifically ask for cloud security assurance, ISO 27017 directly answers that question.

SOC 2, by contrast, is a general framework for service organizations. It can be applied to cloud services, but the controls are defined by the organization rather than prescribed by the standard. This flexibility is both a strength (adaptability) and a weakness (inconsistency between organizations).

2. Management System vs Attestation

ISO 27001 with ISO 27017 requires a management system — ongoing governance, risk management, internal audit, management review, and continual improvement. This provides assurance that security is embedded in organizational culture.

SOC 2 is an attestation that controls were designed and operating effectively during a specific period. It does not require a management system, though many organizations implement one to support their SOC 2 program.

3. Report Transparency

SOC 2 reports provide significantly more detail than ISO certificates. The report includes a system description, control descriptions, test procedures, and results — including any exceptions. Buyers who want detailed visibility into exactly what was tested and what was found prefer SOC 2 for this reason.

ISO 27001 certificates are concise and public. The SoA provides some detail on controls but is not typically shared publicly. Some organizations publish their SoA to provide additional transparency.

4. Shared Responsibility

ISO 27017 explicitly requires a shared responsibility model (CLD.6.3.1). This is a formal control that auditors verify. SOC 2 does not have an equivalent requirement, though shared responsibility may be addressed in the system description.

5. Renewal Cycle

ISO 27001 certificates are valid for 3 years with annual surveillance audits. SOC 2 Type II reports cover a specific period (typically 12 months) and must be renewed continuously. The 3-year ISO cycle can be more cost-efficient for long-term compliance maintenance.

When to Pursue Both

Increasingly, cloud service providers pursue both ISO 27017 (via ISO 27001) and SOC 2. This makes strategic sense when:

You Serve Global Markets

If your customer base includes both US enterprises and international buyers, you will encounter both requirements. Having both eliminates the "we need SOC 2" or "we need ISO 27001" objections.

You Want Maximum Competitive Advantage

Holding both certifications demonstrates comprehensive security commitment and maturity. It signals to buyers that you have invested in security rather than just checking a box.

Your Industry Expects Both

In financial services, healthcare, and technology sectors, buyers may specifically request both. Having them ready avoids delays in the sales cycle.

You're Building Long-Term Trust

ISO 27001 + ISO 27017 provides the management system foundation. SOC 2 provides the detailed attestation. Together, they offer a complete picture: "We have a system, and here are the detailed test results."

Integrated Approach to Both Frameworks

The good news is that ISO 27017 and SOC 2 share significant control overlap. An integrated implementation approach can reduce time and cost by 20-30%:

Common Control Areas

• Access control and identity management
• Change management and deployment controls
• Incident detection and response
• Risk assessment and monitoring
• Vendor management and supply chain security
• Encryption and data protection
• Physical and environmental security
• Security awareness and training
• Business continuity and disaster recovery

Implementation Strategy

1. Start with ISO 27001 + ISO 27017: Build the management system and cloud controls first — this creates the foundation for everything else
2. Map controls to SOC 2 TSC: Identify which ISO controls satisfy which Trust Services Criteria
3. Fill gaps: Implement additional controls required by SOC 2 that are not fully covered by ISO (typically availability and processing integrity specifics)
4. Create shared evidence: Build an evidence repository that serves both frameworks
5. Coordinate audits: Schedule ISO surveillance and SOC 2 audits to minimize overlap in evidence collection

For cloud service providers, we recommend starting with ISO 27001 + ISO 27017 to establish the management system, then adding SOC 2 Type II to satisfy US market requirements. The management system foundation makes SOC 2 preparation significantly easier.

Frequently Asked Questions