What Is SOC 2? (And Why It Matters for SaaS and B2B Vendors)

September 15, 2025

Evie Secilmis

In today’s world, customers don’t just buy software — they buy trust. Before signing contracts or integrating systems, companies want assurance that their vendors protect sensitive data with the same rigor they do.

That’s where SOC 2 compliance comes in.

SOC 2 (Service Organization Control 2) is one of the most widely recognized frameworks for managing customer data securely. It’s not just a checkbox — it’s proof that your organization meets the gold standard for security, availability, and privacy in the digital era.

Defining SOC 2

SOC 2 is an auditing standard developed by the American Institute of Certified Public Accountants (AICPA).
It’s designed for technology and cloud-based service providers that store or process customer information.

A SOC 2 report evaluates whether a company’s systems and processes meet a set of criteria known as the Trust Services Criteria, which include:

Security – Protection against unauthorized access.
Availability – Systems are operational and accessible when promised.
Processing Integrity – Data is complete, valid, and accurate.
Confidentiality – Sensitive information is properly protected.
Privacy – Personal data is collected and used responsibly.

If your company handles customer data — whether you’re a SaaS platform, managed service provider, or payments processor — you’re a likely candidate for SOC 2 compliance.

SOC 2 Type I vs. Type II

SOC 2 reports come in two forms:

Type I evaluates whether your controls are properly designed at a single point in time.
Type II goes further, assessing how effectively those controls operate over a 6–12 month period.

Most buyers, especially in enterprise sales, will request a SOC 2 Type II report because it proves your controls don’t just exist — they actually work.

If you’re preparing to respond to a security questionnaire, Type II compliance can drastically speed up the process by allowing you to provide verified documentation instead of lengthy explanations.

Why SOC 2 Matters in Sales and Procurement

For B2B and SaaS companies, SOC 2 is often the difference between closing a deal and being disqualified.

Procurement teams and security reviewers rely on it to gauge whether a vendor has mature, repeatable controls in place.
Without it, vendors often face:

Lengthy back-and-forth on security questionnaires.
Delayed deal cycles.
Requests for alternative proofs (like penetration tests or custom attestations).

Being SOC 2 compliant signals to prospects that your company values data security — and that you’re ready for enterprise-level scrutiny.

This aligns directly with best practices outlined in our RFP evaluation guide, where structured, verifiable proof always wins over subjective claims.

The SOC 2 Audit Process

Becoming SOC 2 compliant involves four major stages:

Scoping – Define which systems and processes are in scope (e.g., infrastructure, HR, DevOps, customer data).
Gap Assessment – Compare your current controls to the SOC 2 framework.
Remediation – Implement or strengthen policies, access controls, and monitoring systems.
Audit and Reporting – Engage a licensed CPA firm to conduct the official audit and issue your report.

Many organizations start with a readiness assessment through providers like Vanta, Drata, or Secureframe, which automate evidence collection and simplify compliance tracking.

SOC 2 and Other Security Frameworks

While SOC 2 focuses on operational security and controls, it often overlaps with other compliance standards like:

ISO 27001: A global framework for information security management systems (ISMS).
NIST Cybersecurity Framework: U.S. guidelines for identifying, protecting, detecting, responding to, and recovering from cyber threats.
GDPR: European Union regulation for protecting personal data.

Understanding these frameworks is helpful when completing security questionnaires or building your AI knowledge library to maintain consistent responses across compliance standards.

Benefits of SOC 2 Compliance

For buyers:
✅ Confidence that data is protected.
✅ Simplified risk assessments and vendor onboarding.
✅ Easier internal audit alignment.

For vendors:
✅ Faster procurement approvals.
✅ Shorter security review cycles.
✅ A competitive advantage when bidding for enterprise RFPs.
✅ Stronger brand reputation and customer trust.

SOC 2 also reduces the friction teams experience in manual proposal work. By having verified controls, you can respond faster to questions about encryption, access policies, or data retention — minimizing back-and-forth and aligning with lessons from our proposal checklist.

How SOC 2 Ties Into the RFP Process

When organizations issue RFPs, one of the first things they’ll ask for is your SOC 2 report.

It’s a pre-built trust signal that lets evaluators skip hundreds of follow-up questions about your infrastructure and controls.
Instead of answering “Do you encrypt customer data?” fifty times, you can simply attach your attestation.

SOC 2 compliance also supports fair, data-driven scoring within evaluation frameworks like those discussed in RFP evaluation, helping buyers make faster, objective decisions.

Maintaining SOC 2 Compliance

SOC 2 isn’t a one-and-done certification — it’s a continuous commitment.

To stay compliant, organizations should:

Automate evidence collection wherever possible.
Conduct quarterly access reviews and policy audits.
Keep documentation centralized in a secure knowledge hub.
Train employees on evolving data protection practices.

Using automation tools like Iris ensures these updates flow directly into your compliance and sales documentation, so your team never reuses outdated content or policies.

Final Thoughts

SOC 2 isn’t just about passing an audit — it’s about proving to your customers that security and integrity are built into everything you do.

For startups, it opens doors to larger deals.
For established vendors, it reinforces trust with every renewal.

Whether you’re pursuing your first audit or maintaining annual compliance, aligning your SOC 2 strategy with AI automation ensures every future questionnaire, RFP, or audit request is faster, cleaner, and stress-free.

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