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

The question we hear most often from founders and compliance leads is not "Should we get SOC 2 or ISO 27001?" -- it is "Which one do we get first?" The answer depends on who is buying your software and where they sit. Here is how we advise clients to make that call.

If your company sells B2B software primarily to North American enterprises, we recommend getting SOC 2 first. If your primary buyers are in Europe, Asia-Pacific, or other international markets, we recommend ISO 27001 first. If your customer base spans both, we typically advise pursuing SOC 2 first because it provides the stronger sales enablement foundation in the largest enterprise software market, and then adding ISO 27001 within six to twelve months -- leveraging sixty to seventy percent control overlap to significantly reduce the incremental effort.

This guide helps founders, compliance leads, and security teams at B2B software companies make the SOC 2-first versus ISO 27001-first decision by comparing both frameworks across the dimensions that matter for prioritization: buyer expectations by geography and industry, cost and timeline, audit process differences, and how pursuing one framework first reduces the effort required for the second. The goal is not to compare the frameworks abstractly but to help you decide which one to invest in first given your specific market position.

The Core Decision Framework

The right framework to pursue first depends on three factors: where your buyers are located, what industry they operate in, and how quickly you need a report in hand.

Decision Matrix

Your Situation	Recommended First Framework	Reasoning
Selling to US enterprise SaaS buyers	SOC 2	SOC 2 is the default trust framework in US enterprise procurement
Selling to European enterprise buyers	ISO 27001	ISO 27001 is the recognized security certification in EU markets
Selling to APAC enterprise buyers	ISO 27001	ISO 27001 has stronger recognition outside North America
Selling to US financial services	SOC 2	Financial institutions specifically request SOC 2 reports
Selling to US healthcare	SOC 2 (+ HIPAA)	Healthcare buyers expect SOC 2 alongside HIPAA compliance
Selling to both US and international buyers	SOC 2 first, then ISO 27001	SOC 2 provides faster time-to-value; ISO 27001 builds on the same controls
Need a report within 90 days	SOC 2 Type I	Type I can be completed in 90 days; ISO 27001 initial certification takes 6-12 months
Budget-constrained startup	SOC 2 Type I	Lower initial cost; fastest path to a shareable security report

Why Geography Drives the Decision

Enterprise procurement teams evaluate vendors against the security framework they know and trust. In North America, SOC 2 has become the default standard for cloud service provider security evaluation. Enterprise buyers in the US expect a SOC 2 Type II report -- many include it as a mandatory requirement in RFPs and vendor security questionnaires. In contrast, European and APAC buyers are far more likely to request ISO 27001 certification, which aligns with international standards bodies and regulatory frameworks like GDPR.

The practical implication is clear: pursuing the framework your buyers recognize removes friction from your sales process faster than pursuing the "better" framework in abstract terms. In our experience advising B2B software companies, we have seen deals stall for weeks simply because a company had the wrong framework for its target buyer's procurement checklist.

Side-by-Side Comparison for Prioritization

The following comparison highlights the differences that matter most when deciding which to pursue first.

Dimension	SOC 2	ISO 27001
What you get	Attestation report from a CPA firm	Certification from an accredited certification body
Governing body	AICPA (American Institute of Certified Public Accountants)	ISO/IEC (International Organization for Standardization)
Primary market	North America (US and Canada)	Global (strongest in Europe and APAC)
Time to first report/certification	3-6 months (Type I); 9-18 months (Type II)	6-12 months (initial certification)
Annual requirement	Full re-audit every year	Surveillance audits in years 2-3; re-certification every 3 years
Typical first-year cost	$30,000-$150,000	$25,000-$120,000
Ongoing annual cost	$25,000-$120,000 (full re-audit)	$15,000-$60,000 (surveillance audits)
Scope flexibility	Choose Trust Service Criteria relevant to your service	Broad ISMS scope covering organizational information security
Report format	Detailed technical report (50-200+ pages)	Certificate plus Statement of Applicability
Buyer usage	Read the full report; evaluate specific controls	Check certificate validity; review SoA if needed

Cost Comparison Over Three Years

Year	SOC 2	ISO 27001
Year 1	$40,000-$150,000	$30,000-$120,000
Year 2	$30,000-$120,000	$15,000-$50,000
Year 3	$30,000-$120,000	$15,000-$50,000
3-Year Total	$100,000-$390,000	$60,000-$220,000

ISO 27001 has a lower three-year total cost of ownership because the three-year certification cycle includes lighter surveillance audits in years two and three rather than full re-audits. However, what we tell clients is that cost alone should not drive the decision -- the revenue impact of having the right framework for your target market far outweighs the cost differential.

The SOC 2-First Argument

Faster Time to First Report

SOC 2 Type I can be completed in as little as ninety days, giving you a shareable security report faster than any other framework. ISO 27001 initial certification typically takes six to twelve months because it requires an established Information Security Management System (ISMS) operating over time before the certification body conducts its Stage 2 audit. If you need to unblock enterprise deals now, SOC 2 Type I delivers a result while you continue building toward Type II. This is the path we recommend most often for early-stage companies with active sales pipelines.

Stronger Enterprise Sales Enablement in North America

In the US enterprise software market, SOC 2 is the de facto standard. Security review questionnaires reference SOC 2 by name. Procurement teams have internal checklists that include SOC 2. In our experience, sharing a SOC 2 report can reduce security review timelines from four to eight weeks down to one to two weeks. ISO 27001 is recognized in the US market, but it does not carry the same weight in procurement workflows as SOC 2.

More Detailed Report Satisfies Security Teams

SOC 2 reports contain granular detail about specific controls, testing procedures, and test results. Enterprise security teams can evaluate your exact control environment rather than simply verifying that you hold a certificate. This transparency builds deeper trust with technically sophisticated buyers -- something we see consistently when our clients share their reports during enterprise sales cycles.

Flexible Scope Reduces Initial Complexity

SOC 2 allows you to start with the Security criterion only and add Availability, Processing Integrity, Confidentiality, or Privacy in future audit cycles. This means you can achieve your first report with a focused scope and expand as your program matures. We typically recommend starting with Security only for a first Type I, then adding criteria as buyer requirements dictate. ISO 27001 requires a broader ISMS scope from the outset.

The ISO 27001-First Argument

Lower Long-Term Cost

The three-year certification model with surveillance audits makes ISO 27001 approximately thirty to forty percent less expensive over a three-year period compared to SOC 2's annual full re-audit. For budget-constrained companies that can tolerate a longer time to first certification, ISO 27001 provides better cost efficiency.

International Market Recognition

ISO 27001 is the globally recognized information security standard. If your buyers are primarily outside North America, ISO 27001 is the framework they expect. European companies in particular are more familiar with ISO standards and may not recognize SOC 2 at all.

Regulatory Alignment

ISO 27001 aligns well with GDPR requirements and other international regulatory frameworks. Organizations operating in regulated European markets often find that ISO 27001 satisfies regulatory expectations more directly than SOC 2. We advise clients with significant European revenue exposure to weight this factor heavily in their decision.

Three-Year Certification Period

Once certified, your ISO 27001 certificate remains valid for three years (subject to surveillance audits). SOC 2 reports are typically expected to be refreshed annually. The longer certification period provides stability for organizations that want to minimize annual compliance overhead.

How Pursuing One Framework First Reduces the Effort for the Second

The strongest argument for doing both frameworks -- rather than choosing one permanently -- is the substantial control overlap between SOC 2 and ISO 27001. Organizations that have completed one framework can add the second with significantly less incremental work. This is one of the most important points we make to clients early in the planning process.

Control Overlap

SOC 2 and ISO 27001 share sixty to seventy percent of their control requirements. The overlapping areas include:

• Access management: User provisioning, authentication, authorization, access reviews
• Encryption: Data protection at rest and in transit
• Monitoring and logging: Audit trails, anomaly detection, log review
• Risk assessment: Risk identification, analysis, treatment, and ongoing management
• Incident response: Detection, classification, response, recovery, and communication
• Vendor management: Third-party security assessment and ongoing monitoring
• Change management: Change control procedures for infrastructure and applications
• Business continuity: Disaster recovery planning and testing

Incremental Effort After SOC 2

If you pursue SOC 2 first, the incremental work to add ISO 27001 includes:

• Establishing a formal ISMS (Information Security Management System) with documented scope, policy framework, and management review process
• Mapping existing SOC 2 controls to ISO 27001 Annex A controls and addressing gaps
• Conducting an ISO 27001-specific internal audit
• Completing a management review meeting
• Engaging an accredited certification body for the Stage 1 (documentation review) and Stage 2 (certification) audits

The incremental timeline is typically three to six months and twenty to thirty-five percent additional cost over the SOC 2 baseline.

Incremental Effort After ISO 27001

If you pursue ISO 27001 first, the incremental work to add SOC 2 includes:

• Mapping ISO 27001 controls to SOC 2 Trust Service Criteria
• Addressing SOC 2-specific requirements not covered by ISO 27001 (system description, management assertion, CPA attestation format)
• Engaging a CPA firm for the SOC 2 audit
• Establishing continuous evidence collection aligned with SOC 2's observation period requirements
• Documenting controls in the format SOC 2 auditors expect

The incremental timeline is typically three to six months with a similar cost increase.

GRC Platform Efficiency

Modern GRC platforms -- Vanta, Drata, Secureframe, Sprinto, and others -- support both frameworks simultaneously. When you implement a control for one framework, the platform automatically maps it to the corresponding requirement in the other framework. This eliminates the duplicate effort of managing two separate compliance programs. We help our clients select and implement the right GRC platform as part of their multi-framework strategy.

Pursuing Both: Recommended Sequencing

For organizations that need both frameworks (the most common scenario for growth-stage and mid-market SaaS companies), here is the sequencing we recommend:

Sequence 1: SOC 2 First (Recommended for US-Based Companies)

Phase	Timeline	Milestone
SOC 2 Type I	Months 1-3	First report to share with customers
Begin Type II observation	Month 4	Controls operating continuously
Begin ISO 27001 implementation	Month 4-6	Leverage SOC 2 controls as foundation
SOC 2 Type II report	Month 10-15	Gold standard report delivered
ISO 27001 certification	Month 10-18	International certification achieved

This sequence provides the fastest time to first deliverable (Type I at month three), transitions to Type II for long-term credibility, and layers ISO 27001 onto the existing SOC 2 control foundation.

Sequence 2: ISO 27001 First (Recommended for International-First Companies)

Phase	Timeline	Milestone
ISO 27001 ISMS implementation	Months 1-6	ISMS operational
ISO 27001 Stage 1 and Stage 2 audits	Months 7-10	Certification achieved
SOC 2 Type I (leveraging ISO controls)	Months 8-11	SOC 2 report for US market expansion
SOC 2 Type II observation and audit	Months 12-22	Full Type II coverage

This sequence prioritizes international market credibility and then uses the established ISMS as the foundation for SOC 2 compliance.

Industry-Specific Considerations

Certain industries have clearer preferences that simplify the decision. Based on what we see across our client base, here is how industry maps to framework priority:

Industry	Recommended First	Reasoning
Fintech (US-focused)	SOC 2	US financial institutions specifically request SOC 2; PCI DSS overlap is higher with SOC 2
Healthtech	SOC 2	Healthcare buyers expect SOC 2 + HIPAA; ISO 27001 is secondary
B2B SaaS (US enterprise)	SOC 2	SOC 2 is the procurement standard for US enterprise SaaS
B2B SaaS (European enterprise)	ISO 27001	GDPR alignment and European buyer expectations
Government contracting	Depends on market	US federal: FedRAMP/NIST; international: ISO 27001
Professional services	ISO 27001	Broader organizational coverage; client expectations vary

We help our clients build efficient multi-framework programs that match their specific industry and market position, so the sequencing decision accounts for both current buyer requirements and where the company is heading over the next twelve to eighteen months.

Key Takeaways

• We recommend SOC 2 first if your primary buyers are in North America, and ISO 27001 first if your primary buyers are in Europe or APAC
• SOC 2 Type I can be completed in ninety days -- we consider it the fastest path to a shareable security report for unblocking enterprise deals
• ISO 27001 has lower three-year total cost of ownership due to its surveillance audit model, but in our experience SOC 2 provides stronger US enterprise sales enablement
• SOC 2 and ISO 27001 share sixty to seventy percent control overlap -- pursuing one framework reduces the effort for the second by thirty to fifty percent
• Most growth-stage SaaS companies eventually need both frameworks, so we advise focusing on sequencing rather than choosing one permanently
• GRC platforms that support both frameworks eliminate duplicate control management and make dual compliance significantly more efficient
• The revenue impact of having the right framework for your market far outweighs the cost difference between the two options

Frequently Asked Questions

Can I get both SOC 2 and ISO 27001 at the same time?

What we tell clients is yes, and this approach is becoming increasingly common. Organizations that implement their security program using a GRC platform can pursue both frameworks in parallel because the platform maps controls to both sets of requirements simultaneously. The total cost of pursuing both together is approximately thirty to fifty percent more than either framework alone -- significantly less than the combined cost of two independent implementations. The practical constraint is resource bandwidth: running SOC 2 and ISO 27001 audits concurrently requires more compliance team capacity during the audit period. We typically help clients plan the audit windows so they do not overlap and overwhelm the team.

If I already have ISO 27001, how long does it take to add SOC 2?

Based on what we see with our clients, organizations with an established ISO 27001 ISMS can typically achieve SOC 2 Type I in three to four months and begin the Type II observation period immediately. The incremental effort focuses on mapping existing ISO controls to SOC 2 Trust Service Criteria, creating the system description, engaging a CPA firm, and establishing the evidence collection format SOC 2 auditors expect. Most of your ISO 27001 controls satisfy SOC 2 requirements directly, reducing the gap analysis effort significantly.

Do enterprise buyers accept one framework instead of the other?

In our experience, it depends on the buyer's procurement process and geography. Most US enterprise buyers specifically require SOC 2 and will not accept ISO 27001 as a substitute -- their vendor security questionnaires and RFP templates reference SOC 2 by name. Similarly, many European enterprise buyers require ISO 27001 and may not be familiar with SOC 2. Sophisticated global buyers may accept either, but having the framework their procurement team expects eliminates friction and accelerates the security review process. We always advise clients to match the framework to their buyer, not the other way around.

Is one framework harder to achieve than the other?

What we tell clients is that the implementation effort is comparable for both frameworks. SOC 2 has more flexibility in scope (you choose which Trust Service Criteria to include), which can reduce initial complexity. ISO 27001 requires a broader organizational ISMS, which involves more documentation and formal management commitment. The audit processes differ in structure -- SOC 2 uses CPA firm attestation while ISO 27001 uses accredited certification body auditing -- but neither is inherently more difficult. Based on our experience, the challenge level depends more on your starting security posture than on the framework itself.

What if my customers ask for SOC 2 but I only have ISO 27001?

We advise clients in this situation to share their ISO 27001 certificate and Statement of Applicability while explaining that they are pursuing SOC 2 and providing a timeline for completion. Many buyers will accept ISO 27001 as interim evidence of security maturity while you work toward SOC 2. If the buyer's procurement process requires SOC 2 specifically, we recommend asking whether a bridge letter from your auditor or a detailed security questionnaire response can satisfy the requirement until your SOC 2 report is available.