The Question Behind the Question
When a prospect asks "Do you have SOC 2 or ISO 27001?", what they're really asking is: "Can I trust you with our data?" The certificate is shorthand for a longer conversation about security maturity.
Understanding which framework serves that conversation better—for your specific business—is the key to making a smart investment.
SOC 2 produces a report describing how you operate. ISO 27001 produces a certificate confirming you've built a management system. One documents what you do; the other certifies how you manage what you do.
Understanding the Frameworks
Both frameworks demonstrate security maturity. Both require significant investment. But they evolved from different traditions with different philosophies.
SOC 2: The American Approach
Developed by the AICPA for service organizations. The auditor examines your controls and writes a detailed report about what they found. There's no pass/fail—just a narrative with (hopefully) no exceptions. Your customers read the actual report to evaluate you.
ISO 27001: The International Standard
Created by ISO as a specification for an Information Security Management System (ISMS). A certification body audits your management system against 93 specific controls. You either get the certificate or you don't.
The practical difference matters: SOC 2 is more flexible (you choose which Trust Service Criteria to include), while ISO 27001 is more prescriptive (you must address all Annex A controls, though you can document why some don't apply).
The Comparison That Actually Matters
That maintenance cost difference is important: SOC 2 requires a full audit every year, while ISO 27001's surveillance audits are lighter. Over a 3-year period, ISO 27001 often costs less to maintain—but has higher upfront investment in documentation and management system design.
Real Decision Criteria
Forget abstract framework comparisons. Here's how actual businesses make this decision:
Pipeline included 12 enterprise prospects—10 US-based, 2 UK-based. US prospects were asking for SOC 2; UK prospects were asking for ISO 27001. Limited budget meant choosing one to start.
Started with SOC 2 because 83% of immediate pipeline required it. Documented that ISO 27001 was on the roadmap for the UK prospects. The 2 UK deals were willing to proceed with a contractual commitment to achieve ISO 27001 within 18 months.
The Decision Framework
Choose SOC 2 first if:
Your customers are primarily US-based enterprises. SOC 2 is the dominant standard in American B2B software. It's also faster to achieve (Type 1 can be completed in 3-4 months) and the report format lets prospects dig into the details of your security practices.
Choose ISO 27001 first if:
Your customer base is international, particularly in Europe or Asia-Pacific. EU regulations like DORA and NIS2 are driving increased focus on security certifications, and ISO 27001 is the recognized global standard. It's also better if you're building a comprehensive security management system rather than just validating existing practices.
Consider pursuing both if:
Your revenue is significantly split between US and international markets. About 23% of companies now pursue dual certification. There's substantial overlap—maybe 60-70% of the work carries over—so the incremental cost for the second certification is lower than starting fresh.
When asked what the most important audit for their business was in 2025, organizations more often ranked ISO 27001 and SOC 1 as most important over SOC 2—reflecting the growing international nature of B2B software sales.
The Third Path: Strategic Readiness
Here's the approach that serves most early-stage companies best: build for both, certify for neither (yet).
The controls required by SOC 2 and ISO 27001 overlap significantly. If you implement strong security practices with good documentation, you're probably 80% ready for either certification. The remaining 20% is framework-specific requirements and formal audit preparation.
Build your security program using the ISO 27001 control framework (it's more comprehensive) while documenting your practices in a way that maps to SOC 2 Trust Service Criteria. When a prospect requires certification, you can pursue whichever they need—and the readiness work is already done.
This approach makes sense until you have clear, specific, revenue-blocking requirements for one certification or the other. Certification is expensive; premature certification is wasted money.
Making the Business Case
When you're ready to pursue certification, frame it as an investment decision:
If you have $500K in pipeline blocked by security requirements and a 40% close rate, certification enables $200K in revenue. A $60K certification investment yields 3.3x return. That's a clear yes.
But if you have $100K in pipeline blocked and 25% close rate, certification enables $25K—less than the cost. That's a clear "not yet."
The Path Forward
The certification decision isn't about which framework is "better." It's about which framework your customers recognize, trust, and require.
Start by documenting what your prospects actually ask for. Track which deals are blocked by security requirements and what specifically they're requesting. Let the data guide your decision.
In most cases, you'll find that building a strong security foundation—documented policies, implemented controls, clear security narratives—gets you most of the value. The formal certification is the final step when specific deals require it.