SOC 2 vs ISO 27001: Which Certification Should You Pursue First?

The Question Every Growing Company Asks

If you sell software or services to enterprises, you've been asked about your security certifications. The two most requested are SOC 2 and ISO 27001. Both demonstrate that your organisation takes information security seriously, but they differ significantly in scope, approach, cost, and geographic recognition.

SOC 2: The North American Standard

SOC 2 is an audit framework developed by the AICPA based on the Trust Services Criteria: Security, Availability, Processing Integrity, Confidentiality, and Privacy. Security is always included; the other four are optional.

A SOC 2 Type I report attests that controls are designed appropriately at a point in time. A Type II report attests that controls operated effectively over a period (typically 6-12 months). Type II is what most enterprise buyers want.

Pros: Highly recognised in the US and Canada. Flexible scope:you choose which Trust Services Criteria to include. The audit results in a detailed report that buyers can review. Timeline to first Type I report: 3-6 months.

Cons: The report is proprietary:you can share it, but it doesn't result in a certificate you can display. Less recognised outside North America. Each annual audit is essentially a fresh engagement.

ISO 27001: The Global Standard

ISO 27001 is an international standard for Information Security Management Systems (ISMS). Certification is granted by accredited certification bodies and is valid for three years, with annual surveillance audits.

Pros: Globally recognised:essential for selling into Europe, APAC, and multinational enterprises. Results in a certificate you can display on your website and marketing materials. The management system approach drives continual improvement. Cross-framework benefits: ISO 27001 maps well to GDPR, NIST CSF, and many other frameworks.

Cons: Broader scope means more upfront effort. Typically takes 6-12 months for first certification. Requires ongoing management system maintenance:not just annual audit preparation.

Cost Comparison

SOC 2 Type II typically costs $30,000-$100,000 for the audit itself, depending on scope and firm. ISO 27001 certification audits range from $15,000-$50,000, but implementation costs (consultant, tools, staff time) can add $50,000-$150,000.

Our Recommendation

If your customers are primarily in North America: start with SOC 2. If you're selling globally or into regulated industries: start with ISO 27001. If you can afford both, ISO 27001 first:it creates a management system foundation that makes SOC 2 easier to achieve subsequently. The 70%+ control overlap means the second certification is significantly less effort than the first.