What is SOC 2 Certification for SaaS?

SOC-2 is an audit that shows that a service manages your data securely. The audit looks at how you store data, with a focus on keeping information confidential. It considers different aspects, such as multi-factor authentication, disaster recovery, and performance monitoring.

The Trust Services Criteria, also known as TSC, are the different areas that you’ll be audited against when applying for SOC-2 certification. These are typically: 

• Privacy
• Security 
• Confidentiality
• Processing Integrity
• Availability

How you score within these categories will determine the result of your audit. It’s worth checking whether you’re compliant before getting a SOC-2 audit and plugging gaps if you find them.

Legally, you are not required to get a SOC-2 certificate. However, since it’s becoming the industry standard, not having one will be clear to your customers, and it’s therefore a good idea to ensure that you’re SOC-2-compliant. 

SOC-2 is recommended for companies handling sensitive data, and it’s likely that businesses wanting to work with a SaaS provider will look for SOC-2 certification.

While SOC-2 and ISO 27001 are recognized internationally and across different industries, they differ in their focuses. Here’s what you need to know. 

• SOC-2 is about security, availability, integrity, confidentiality, and privacy. You will be audited in these areas. 
• ISO 27001 is more broad than SOC-2, and it’s about your information security management system (ISMS). 

Whether you get SOC-2 or ISO 27001 will depend on your business’s needs. Here’s what you need to think about when choosing one:

• Customer requirements: You need SOC-2 compliance if your customers request it. 
• Industry focus: If you’re in SaaS or tech, you should go for SOC-2 as this is the norm. ISO 27001, on the other hand, is common in other industries. 
• Scope: Use ISO 27001 if you need a broader information security framework. SOC-2, on the other hand, is used to highlight security controls for your customers.  
• Resources: You might want to consider getting both certifications, but regardless, plan your time and monetary resources before choosing. 

Depending on your industry and data handling, you may also need to comply with GDPR, PCI DSS, and HIPAA.