Meeting global security standards becomes vital as more companies handle sensitive customer data.
ISO 27001 and SOC 2 are two of the most recognized frameworks to help businesses maintain data security and build trust with clients. But which one is right for your organization?
Understanding the differences between ISO 27001 and SOC 2 can clarify which framework aligns best with your business needs, whether you’re focused on global compliance or specific client expectations.
Let’s break down the key aspects of ISO 27001 and SOC 2, compare their costs, and explore factors to consider when choosing the right certification.
What is ISO 27001?
ISO 27001 is an international information security management system (ISMS) standard, developed by the ISO (International Organization for Standardization) and the IEC (International Electrotechnical Commission). It focuses on establishing, implementing, maintaining, and continually improving a security management system to safeguard sensitive information.
By obtaining ISO 27001 certification, companies demonstrate a commitment to high-security standards, proving that they have a comprehensive framework to identify and manage security risks.
ISO 27001 covers various areas of security, including confidentiality, integrity, and availability of information, as well as compliance with relevant legal and regulatory requirements.
What is SOC 2?
SOC 2 (Service Organization Control 2) is a security framework developed by the American Institute of Certified Public Accountants (AICPA). It specifically applies to technology and cloud-based service providers that manage customer data.
SOC 2 is based on the Trust Services Criteria, which include security, availability, processing integrity, confidentiality, and privacy.
While SOC 2 isn’t a formal certification like ISO 27001, it provides an independent attestation report, which validates the organization’s security practices and data protection measures.
ISO 27001 vs SOC 2: Key differences
Both ISO 27001 and SOC 2 are well-respected frameworks in the field of data security, but they serve different purposes and are suited to different types of organizations. Here are some key distinctions:
| Aspect | ISO 27001 | SOC 2 |
| Focus | Global standard for ISMS | Data security and privacy for service providers |
| Developed By | ISO and IEC | AICPA |
| Certification | Formal certification required | Independent attestation report |
| Audit Requirements | External audit by accredited certifying body | External audit by CPA firms |
| Applicability | Suitable for various industries and organization sizes | Primarily SaaS and cloud-based service providers |
| Controls | Defines controls based on security management | Defines controls based on Trust Services Criteria |
| Geographic Reach | Recognized worldwide | Primarily U.S.-focused |
| Frequency of Audits | Every three years (recertification) | Annual or semi-annual |
Cost comparison of ISO 27001 vs SOC 2
The investment for ISO 27001 and SOC 2 can vary significantly based on organizational size, complexity, and pre-existing infrastructure. Here’s a breakdown:
1. Initial costs
- ISO 27001: Initial costs for ISO 27001 certification include the development of an Information Security Management System (ISMS), as well as any necessary risk assessments, training, and consultations.
Small to medium-sized organizations may expect costs between $10,000 to $50,000, while larger enterprises could incur much higher expenses.
💡 Read more: How Much Does ISO 27001 Certification Cost?
- SOC 2: SOC 2 initial costs primarily involve preparing for the audit, which may require policy updates, process changes, and employee training.
Costs can start at $20,000 for smaller organizations, with larger or more complex audits ranging up to $100,000 or more.
2. Audit fees
- ISO 27001: ISO 27001 requires an external audit from an accredited certification body, which assesses the effectiveness of the ISMS.
This audit fee typically ranges from $5,000 to $15,000 per audit cycle, depending on the organization’s size and complexity. Re-certification audits are needed every three years, adding to long-term costs.
- SOC 2: SOC 2 also requires an independent audit, but it’s conducted by a CPA firm. For SOC 2, the audit can be Type 1 or Type 2, with Type 2 being more extensive and therefore more expensive.
Costs for a SOC 2 audit can start at $10,000 for Type 1 and $30,000 or more for Type 2, depending on the chosen Trust Services Criteria.
3. Internal resource allocation
- ISO 27001: Implementing ISO 27001 is a resource-intensive process that may require a dedicated team, especially for larger organizations. Time commitments from management, IT, and other departments can significantly impact costs.
Additional resources for regular internal audits and maintenance of the ISMS should also be factored in.
- SOC 2: SOC 2 typically requires less internal restructuring compared to ISO 27001, but it still demands significant resource allocation. Internal teams may need to manage new policies and support continuous monitoring.
4. Training and employee awareness
- ISO 27001: Employee training on ISO 27001 requirements is essential to establish a company-wide security culture and ensure compliance.
- SOC 2: While SOC 2 may not require formal training programs and can be less costly, companies often invest in workshops or awareness campaigns to help employees understand the Trust Services Criteria.
5. Ongoing maintenance and compliance costs
- ISO 27001: Maintaining certification involves regular internal audits, management reviews, and continuous improvement efforts. Annual maintenance costs can constitute 20–30% of the initial implementation expenses.
- SOC 2: SOC 2 compliance requires annual audits and continuous monitoring of controls. Ongoing costs include audit fees and resources dedicated to ensuring controls remain effective.
6. Technology investments
- ISO 27001: Many organizations invest in advanced technology solutions, such as security monitoring tools, compliance management software, and data encryption, to align with ISO 27001’s rigorous standards.
- SOC 2: SOC 2 compliance may also necessitate certain technology investments, particularly in logging, monitoring, and alerting systems to meet processing integrity and confidentiality criteria.
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Choosing between ISO 27001 and SOC 2
Choosing between ISO 27001 and SOC 2 depends on several factors. Here’s a closer look at which might be a better fit based on key business considerations:
Business type and industry
SOC 2 is ideal for SaaS and cloud-based service providers whose clients prioritize data security and privacy. For example, SOC 2 compliance may be essential for organizations providing online services in the United States.
In contrast, ISO 27001 is more versatile and applicable to a broad range of industries including healthcare, finance, and manufacturing.
Client and market expectations
Consider your geographic reach and client expectations. SOC 2 is widely recognized in the U.S., making it suitable for businesses with U.S.-based clients.
However, if your organization is on a global scale, ISO 27001 may be a better choice due to its international recognition as an information security management standard.
Resource commitment
Both ISO 27001 and SOC 2 require substantial resource investment, but ISO 27001’s certification process can be more demanding, with a focus on building and maintaining an ISMS.
SOC 2 requires regular audits, but its implementation might be less intensive, depending on the criteria selected.
Certification needs
ISO 27001 provides a formal certification, offering external validation of your organization’s information security management system. SOC 2, on the other hand, results in an attestation report (a report to confirm that a business has implemented appropriate security measures based on the Trust Services Criteria).
For businesses that require a formalized certification, ISO 27001 may be preferable. However, if your goal is to provide a trust report for customer assurance, SOC 2 may be sufficient.
Can you implement both?
Yes, implementing both ISO 27001 and SOC 2 can be advantageous for organizations seeking to meet diverse compliance needs and strengthen their data security practices. While each framework has a unique focus, combining ISO 27001 and SOC 2 can help build a comprehensive security posture that appeals to a global clientele and assures customers of the highest security standards.
Benefits of implementing both
Enhanced customer trust and credibility
Achieving compliance with both ISO 27001 and SOC 2 signals a strong commitment to security and data protection.
For clients, particularly those in highly regulated industries, this dual compliance offers reassurance that the organization prioritizes information security management and meets international security practices.
Broader market reach
Having both ISO 27001 and SOC 2 positions the organization as a versatile and globally compliant provider.
SOC 2 is widely recognized in North America, especially in sectors like SaaS and cloud services, while ISO 27001 is recognized globally across various industries.
Comprehensive security framework
ISO 27001’s emphasis on a robust information security management system (ISMS) complements SOC 2’s focus on Trust Services Criteria.
This dual framework helps create a security strategy that addresses both high-level management practices and specific controls for processing integrity confidentiality.
Reduced security risks and improved incident response
Together, these frameworks enable comprehensive risk management and incident response planning, helping organizations detect and address threats swiftly.
Challenges of implementing both
Resource and time investment
Implementing both ISO 27001 and SOC 2 requires substantial resources, including time, personnel, and financial investment.
ISO 27001 demands extensive ISMS and regular internal audits, while SOC 2 requires annual attestation audits.
Complexity of maintaining dual compliance
Maintaining compliance with both frameworks can be complex, as each has distinct requirements. Overlapping requirements must be carefully managed to avoid duplication of effort while ensuring both standards are met consistently.
Cultural and organizational change
Implementing two frameworks can require significant organizational changes, especially in terms of employee training and awareness. Both ISO 27001 and SOC 2 require ongoing education for employees.
ISO 27001 and SOC 2 – The best fit for your startups
Choosing between ISO 27001 and SOC 2 depends on your startup’s unique needs, client base, and long-term goals.
While SOC 2 is tailored to SaaS and cloud-based companies and is recognized in the U.S., ISO 27001 offers a global approach to managing information security. Both standards contribute to data security and foster client trust, so consider your organization’s industry, location, and client base when deciding.
If you’re ready to elevate your startup’s data security, Esevel’s IT solutions can support you every step of the way.
With expertise in global IT support, device management, and security services, Esevel can help your team adopt the right standards and maintain top-tier security practices.Find out more about how we can help! 💡⚡
