If you are a SaaS company or technology service provider building your security credibility, you will encounter both ISO 27001 and SOC 2 as options. They are sometimes presented as equivalent alternatives — both demonstrate that you take information security seriously. But they are structurally different, and the decision of which to pursue (or which to pursue first if you plan to do both) has real commercial implications.
What Each One Is
ISO 27001
ISO 27001 is an international standard published by ISO and IEC. It specifies requirements for an Information Security Management System. A certificate against this standard is issued by an accredited certification body following a formal audit. The certificate is internationally recognised, directly comparable across organisations, and valid for three years subject to annual surveillance. It is a certification — your organisation has been independently audited and found to meet the requirements of the standard.
SOC 2
SOC 2 (System and Organization Controls 2) is a framework developed by the American Institute of Certified Public Accountants (AICPA). It is not a standard — it is an audit report. A licensed CPA firm audits your organisation against the Trust Services Criteria (covering security, availability, processing integrity, confidentiality, and privacy) and produces a report. There are two types: Type 1 (point-in-time design assessment) and Type 2 (operating effectiveness over a period, typically 6-12 months). There is no internationally recognised certificate — just the report itself, which you share under NDA with prospective customers.
Key Structural Differences
- ISO 27001 produces a public certificate; SOC 2 produces a confidential report shared with specific recipients
- ISO 27001 is internationally recognised; SOC 2 is primarily used in the US and by US-aligned organisations globally
- ISO 27001 has a defined set of requirements; SOC 2 criteria are more flexible and can be scoped narrowly
- ISO 27001 requires a management system with ongoing maintenance obligations; SOC 2 Type 2 assesses a defined observation period
- ISO 27001 certification bodies must be nationally accredited; SOC 2 auditors must be licensed CPAs but there is no equivalent accreditation system
- ISO 27001 is referenced in GDPR compliance arguments; SOC 2 is not directly referenced in EU/UK regulatory frameworks
Geography Determines the Answer for Most Organisations
The single most reliable predictor of which standard to pursue first is your primary customer geography.
If your customers are primarily in Europe — UK, Germany, France, the Nordics, Benelux — pursue ISO 27001 first. European enterprise procurement teams and public sector buyers are familiar with ISO 27001 and frequently require it. SOC 2 reports are much less commonly requested in European procurement processes, and the concept of a confidential audit report rather than a public certificate is alien to many European buyers.
If your primary market is the US — and particularly if you are selling to mid-market and enterprise US technology companies — SOC 2 Type 2 is likely more immediately valuable. US technology buyers expect SOC 2 reports as a baseline. ISO 27001 is recognised but less commonly required in US enterprise procurement than SOC 2.
If you sell to both markets, you will eventually need both. But most organisations have a dominant market at the stage where they are first making this decision. Start with the one that unblocks the most revenue.
Overlap Between the Two Standards
There is meaningful overlap between ISO 27001 and SOC 2. Both require documented security policies, access control management, risk assessment, incident response, vendor management, and monitoring. An organisation that has built an ISMS for ISO 27001 is well-positioned to undergo a SOC 2 audit — much of the evidence is the same. The reverse is also broadly true, though ISO 27001's comprehensive clause structure and risk assessment requirements go further than SOC 2's Trust Services Criteria in some areas.
Practically, if you achieve ISO 27001 first and then pursue SOC 2, the incremental effort for SOC 2 is moderate — primarily scoping the audit engagement, working with a CPA firm, and filling any gaps between your ISMS controls and the Trust Services Criteria. Most ISO 27001-certified organisations can achieve SOC 2 Type 2 within six months of deciding to pursue it.
Can You Do Both at Once?
Technically yes, but it is not advisable for most organisations as a first certification project. Running both programmes simultaneously requires managing two separate audit processes with different methodologies, different auditors, and different evidence collection requirements. For organisations that are new to formal compliance programmes, the distraction is significant. The more efficient path for most is to complete ISO 27001 first, establish the ISMS infrastructure, then pursue SOC 2 as a follow-on project.
The Decision Framework
Choose ISO 27001 first if:
- Your primary customers are in Europe, the UK, or the Middle East
- You are selling to financial services, government, or healthcare customers in any geography
- You need a publicly verifiable certificate rather than a confidential report
- You are bound by GDPR and need to demonstrate compliance to regulators
- Your customers include public sector organisations
Choose SOC 2 first if:
- Your primary market is the US and your customers are tech-sector buyers
- Your prospects are sending you SOC 2 questionnaires and not ISO 27001 requirements
- You are selling to US-listed companies that have their own SOC 2 obligations
- You need a Type 2 report for a specific enterprise contract
If you are ready to start with ISO 27001, our template library and implementation services are designed to get European and international organisations to certification efficiently.