SOC 2 vs. ISO 27001: Which Security Framework Does Your SaaS Company Really Need?
- Martin Snyder
- Jul 14
- 3 min read

You’re growing fast—more customers, bigger contracts, and new markets on the horizon. Then a prospect hits you with it:“Are you SOC 2 compliant? What about ISO 27001?”
Suddenly, your deal stalls—not because of your product, but because of security assurance.
If you’re in SaaS, you’ve likely heard of both frameworks. But what’s the difference, and which one do you actually need?
At Waldo Security, we help SaaS companies discover their full cloud footprint and uncover hidden risks—laying the groundwork for compliance with standards like SOC 2 and ISO 27001.
What Are SOC 2 and ISO 27001?
Both SOC 2 and ISO 27001 are security frameworks designed to help companies protect customer data and prove it to others—but they’re structured very differently.
SOC 2 is an attestation developed by the AICPA. It focuses on how service providers handle customer data based on five Trust Service Criteria: security, availability, processing integrity, confidentiality, and privacy.
ISO 27001 is a globally recognized certification for establishing and maintaining an Information Security Management System (ISMS). It’s part of the ISO/IEC 27000 family of standards and emphasizes formal risk management and continuous improvement.
SOC 2 vs. ISO 27001: Key Differences
Feature | SOC 2 | ISO 27001 |
Type | Attestation report from a CPA firm | Formal certification by an accredited body |
Recognition | Widely accepted in North America | Recognized globally |
Structure | Flexible—no specific controls required | Prescriptive—requires a documented ISMS |
Approach | Evaluates outcomes against trust criteria | Requires ongoing internal audits and review |
Which Framework Should You Choose?
You don’t always need both—at least not right away. Here’s how to decide:
Choose SOC 2 if:
Your customers are primarily based in the U.S. or Canada
You’re selling to mid-market or enterprise organizations
You want a flexible framework that can align with your existing controls
Choose ISO 27001 if:
You’re working with international customers or partners
You need a globally recognized security certification
You prefer a structured approach to risk management and continuous improvement
Why Some Companies Pursue Both
While different in structure, SOC 2 and ISO 27001 share significant control overlap—especially around access control, incident response, and risk assessments. Many companies begin with one and later pursue the other to meet new market demands.
For example, an ISMS built for ISO 27001 can be adapted to satisfy SOC 2’s trust criteria. And a mature SOC 2 Type II audit can act as a foundation for ISO certification.
More Than a Badge: Why Compliance Really Matters
Whether you’re pursuing SOC 2, ISO 27001, or both, it’s not just about getting through audits—it’s about earning customer trust. Security questionnaires are now a gatekeeping function in most sales processes. If you don’t have the right answers, you don’t get the deal.
But compliance starts long before the audit.
Many companies fail compliance checks not because of weak controls—but because they don’t know where all their data is or which SaaS apps their teams are using.
This is where SaaS visibility plays a critical role. Waldo Security helps SaaS companies identify unmanaged apps, detect risky integrations, and reduce exposure—giving you the foundation to build toward compliance. Learn more in our guide on How to Detect Shadow SaaS and Manage Risk and How to Make Sure You Remove All SaaS Access of an Employee.
Conclusion: Align Security with Growth
SOC 2 and ISO 27001 aren’t checkboxes—they’re trust signals. The right framework for your company depends on where you’re selling, who you’re selling to, and how mature your internal processes are.
Whichever path you choose, make sure your security program scales with your growth.
Waldo Security can help you get there—by showing you where your SaaS risks are hiding and helping you align your security controls with the frameworks your customers care about most.
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