Quick Answer: If your company stores, processes, or transmits customer data—and you sell to other businesses—you probably need SOC 2 compliance. But the real question isn't whether you legally need it. It's whether you can afford to lose deals without it.

The Phone Call That Changes Everything

It usually starts with a phone call.

A startup founder we worked with last year—let's call him David—had just landed a meeting with his dream customer: a Fortune 500 healthcare company. His SaaS platform was perfect for their needs. The demo went flawlessly. The procurement team loved it.

Then came the question that stopped everything:

"Can you send over your SOC 2 Type 2 report?"

David didn't have one. He'd never heard of SOC 2 until that moment.

The deal didn't die immediately—but it stalled for eight months while David scrambled to get compliant. By the time he had his report, the healthcare company had signed with a competitor who already had SOC 2.

That single missing certification cost him a $2.3 million annual contract.

We've seen this story play out dozens of times. The companies that come to us for SOC 2 help usually fall into two categories:

The Proactive Ones — They're preparing for growth and want SOC 2 before customers ask
The Reactive Ones — They just lost a deal (or almost lost one) and need SOC 2 yesterday

Which one do you want to be?

What Exactly Is SOC 2 Compliance?

Before we dive into who needs it, let's clear up what SOC 2 actually is—because there's a lot of confusion out there.

SOC 2 (Service Organization Control 2) is a security framework developed by the American Institute of Certified Public Accountants (AICPA). It's designed to ensure that service providers securely manage data to protect the privacy and interests of their clients.

Here's what makes SOC 2 different from other certifications:

Aspect	SOC 2	ISO 27001	HIPAA	PCI DSS
Focus	Service providers handling customer data	Information security management	Healthcare data	Payment card data
Required by law?	No	No	Yes (healthcare)	Yes (card processors)
Who asks for it?	Enterprise B2B customers	International clients	Healthcare orgs	Banks, processors
Geographic relevance	Primarily USA	Global	USA	Global

The key insight: SOC 2 is not legally required for anyone. But in today's B2B landscape, it's becoming practically required if you want to win enterprise deals.

The Two Types of SOC 2 Reports (And Why It Matters)

When someone asks for your "SOC 2," they usually mean one of two things:

SOC 2 Type 1

✓ What it proves: Your security controls are properly designed at a specific point in time
✓ Timeline: 2-3 months to achieve
✓ Cost: $20,000 - $50,000 (audit only)
✓ Best for: Companies that need compliance quickly for an urgent deal

SOC 2 Type 2

✓ What it proves: Your controls are designed AND operating effectively over 6-12 months
✓ Timeline: 6-12 months minimum
✓ Cost: $30,000 - $100,000+ (audit only)
✓ Best for: Companies selling to enterprise customers who demand ongoing assurance

💡 Pro tip from our team: Most enterprise customers will accept a Type 1 report initially, but they'll expect you to have Type 2 within 12-18 months. Start with Type 1 to close deals now, but plan for Type 2 from day one.

Who Actually Needs SOC 2? The Definitive Breakdown

Let's get specific. Here's exactly who needs SOC 2 compliance—and who probably doesn't.

Companies That DEFINITELY Need SOC 2

1. SaaS Companies (Any Size)

If you're a Software-as-a-Service company, SOC 2 is essentially your entry ticket to enterprise sales.

Real example: One of our clients, a 15-person project management SaaS startup, was growing nicely with small business customers. When they tried to move upmarket, they hit a wall. Of 23 enterprise prospects they pitched in Q3 2024, 19 asked for SOC 2 documentation during the sales process.

Without it, they couldn't even get past the security questionnaire phase.

Why SaaS companies need SOC 2:

You store customer data in the cloud
You have access to sensitive business information
Enterprise security teams need assurance before onboarding new vendors
Your competitors probably already have it

SaaS Category	SOC 2 Urgency	Common Buyer Requirements
HR/Payroll software	Critical	Almost always required
CRM platforms	Critical	Required by most enterprises
Project management	High	Required for enterprise tiers
Marketing tools	Medium-High	Often required if handling PII
Developer tools	Medium	Increasingly required

2. Cloud Service Providers & Data Centers

If you host, store, or process data for other companies, your customers' security depends on yours.

The chain of trust: When Company A stores customer data on your infrastructure, they need to prove to their auditors that you have proper controls. Without your SOC 2 report, they can't complete their own compliance requirements.

We worked with a mid-sized hosting provider in Singapore who lost three major clients in one quarter—not because of any security incident, but because those clients were going through their own SOC 2 audits and couldn't produce evidence that their infrastructure provider (our client) was compliant.

3. Managed Service Providers (MSPs) and IT Service Companies

This one hits close to home because the consequences of MSP breaches are devastating.

Scary truth: Some of the largest data breaches in recent years originated from compromised MSPs. The attackers didn't breach the target company directly—they breached the MSP that had admin access to hundreds of client systems.

"We had access to over 200 client networks. The level of trust our clients placed in us was enormous—and frankly, terrifying when I thought about it. Getting SOC 2 wasn't just about winning contracts. It forced us to actually deserve that trust."

— Operations Director at a 50-person MSP (Atlant Security client)

What MSPs handle that requires SOC 2:

Remote access to client systems
Backup and disaster recovery data
Password and credential management
Security monitoring and alerts
Help desk with admin privileges

4. Fintech Companies

Financial technology companies face the highest scrutiny—and for good reason.

⚠️ The stakes are real: We've seen cases where breached fintech companies caused losses exceeding $750 million when transaction processing systems were compromised and payments were redirected to fraudulent accounts.

SOC 2 doesn't guarantee you won't get hacked. But it forces you to implement controls that dramatically reduce your risk—and it shows regulators, partners, and customers that you take security seriously.

Fintech sub-sectors where SOC 2 is essential:

Payment processors
Lending platforms
Banking-as-a-Service providers
Investment and trading platforms
Insurance tech companies
Cryptocurrency/blockchain services

5. Healthcare Technology Companies

While HIPAA is the primary requirement for healthcare providers, healthcare technology companies often need both HIPAA compliance AND SOC 2.

Why both? HIPAA covers healthcare-specific requirements, but many healthcare organizations now require SOC 2 as additional assurance that your general security practices meet enterprise standards.

Real scenario: A medical testing laboratory we helped was required by three separate hospital systems to provide SOC 2 Type 2 reports—even though they were already HIPAA compliant. The hospitals' security teams wanted to see evidence of controls beyond what HIPAA requires.

6. Companies Selling to Enterprise or Government

This is the catch-all category: if your customers include large enterprises, government agencies, or regulated industries, expect SOC 2 to come up.

The procurement process reality:

Buyer Type	% That Require SOC 2	When They Ask
Fortune 500	85%+	Before pilot/trial
Mid-market (500-5000 employees)	60-70%	During evaluation
Government/Public Sector	70%+	RFP requirement
Healthcare organizations	80%+	Before contract
Financial institutions	95%+	Before any discussion

Companies That PROBABLY Need SOC 2 (Soon)

1. Startups Planning to Scale

You might not need SOC 2 today. But if your 12-month plan includes moving upmarket or raising a Series A or B, you'll need it soon.

The smart move: Start building SOC 2-ready controls now, even before you go through the formal audit. This approach:

Reduces your eventual audit cost by 40-60%
Avoids emergency "rush" implementations later
Lets you answer security questionnaires accurately
Positions you for quick certification when the time comes

2. Companies Expanding into the US Market

SOC 2 is primarily an American standard, but it's recognized globally. If you're a European or Asian company entering the US market, expect American enterprise customers to ask for SOC 2.

What we see: International companies are often surprised when their ISO 27001 certification—which is well-respected globally—isn't enough for US enterprise buyers. Many American security teams specifically ask for SOC 2, even if you already have ISO 27001.

3. Data Analytics and AI Companies

If your business model involves processing customer data to generate insights, train models, or provide analytics, you're handling sensitive information at scale.

With increasing scrutiny around AI and data privacy, SOC 2 compliance demonstrates that your data handling practices are sound—a major trust builder in a skeptical market.

Companies That Probably DON'T Need SOC 2

Let's be honest: SOC 2 isn't for everyone. Here's when you can likely skip it:

Company Type	Why SOC 2 Isn't Necessary
Local retail shops	No sensitive customer data stored electronically
Restaurants and hospitality	Minimal data processing (PCI might apply for payments)
Manufacturing (no SaaS)	Not a service provider
B2C e-commerce (basic)	Customer data minimal; GDPR/privacy laws may apply instead
Internal-facing teams	No external customer data handling
Consulting firms (no data access)	No ongoing access to client systems

However: Even companies in these categories may need SOC 2 if they work with enterprise partners who require all vendors to be compliant.

The 5 Trust Service Criteria: What SOC 2 Actually Examines

SOC 2 audits evaluate your company against five "Trust Service Criteria." Understanding these helps you know what you're signing up for:

1. Security (Required)

Access controls, network security, incident response, change management

2. Availability (Optional)

System monitoring, disaster recovery, backup procedures, redundancy

3. Processing Integrity (Optional)

Data validation, error handling, processing monitoring, QA

4. Confidentiality (Optional)

Data classification, encryption, access restrictions, secure disposal

5. Privacy (Optional)

Privacy notices, consent, data retention, individual rights

💡 Our recommendation: Most companies start with Security only for their first SOC 2. This is faster and cheaper, and you can add more criteria later. If your customers specifically require Availability or Confidentiality, include those from the start.

What Happens If You DON'T Get SOC 2?

Let's be direct about the consequences:

💸 Lost Revenue

Every deal you lose because you lack SOC 2 is real money. We've seen startups lose $500K+ deals and agencies lose retainer clients worth $50K/month.

⏱️ Longer Sales Cycles

Without SOC 2, you'll spend hours filling out security questionnaires manually. Each enterprise prospect sends their own (sometimes 200+ questions).

📈 Higher CAC

When deals take longer and require more effort, your customer acquisition cost increases. One client calculated $15,000 extra in sales engineering time per enterprise deal.

🏆 Competitive Disadvantage

If your competitor has SOC 2 and you don't, you've given them a free advantage. Security-conscious buyers will choose the compliant vendor every time.

The Hidden Benefit Most People Miss

Here's the thing: SOC 2 isn't just about the certificate. The process of becoming SOC 2 compliant forces you to implement security controls that actually protect your company. Companies that go through SOC 2 preparation have better access controls, detect and respond to incidents faster, have documented procedures that work, and train employees on security practices. The certificate is proof. The security improvements are the real benefit.

How to Prepare for SOC 2: A Practical Roadmap

If you've decided SOC 2 is right for you, here's how to approach it:

Phase 1: Readiness Assessment (2-4 weeks)

Goal: Understand where you stand today. We evaluate current security policies, technical controls in place, gaps against SOC 2 requirements, and estimated effort to close gaps.

Phase 2: Gap Remediation (2-6 months)

Goal: Build the security controls you need. This is where most companies struggle—and where we spend most of our time helping clients.

Phase 3: Evidence Collection (1-2 months)

Goal: Document that your controls work. Your auditor will need evidence—screenshots, policy documents, access lists, training records, and more.

Phase 4: The Audit (4-8 weeks)

Goal: A CPA firm validates your controls. Planning, control testing, remediation of findings, and final report issuance.

What You'll Need to Implement

Control Area	What You'll Implement
Access Management	Role-based access, MFA, regular access reviews
Endpoint Security	Antivirus, MDM, encryption, patching policies
Network Security	Firewalls, VPNs, network segmentation, monitoring
Logging & Monitoring	Centralized logging, SIEM, alert procedures
Incident Response	IR plan, tabletop exercises, communication procedures
Vendor Management	Third-party risk assessments, vendor inventories
HR Security	Background checks, security training, onboarding/offboarding

The Atlant Security approach: We don't just tell you what to do—we implement controls alongside your team. When we say "you need MFA," we help you choose the right solution, configure it, and roll it out to employees.

Common Questions About SOC 2 Compliance

"How much does SOC 2 cost?"

Total cost depends on your starting point:

Cost Component	Range	Notes
Readiness assessment	$5,000 - $15,000	Understanding your gaps
Gap remediation (consulting)	$20,000 - $75,000	Implementing controls
Tools and software	$5,000 - $30,000/year	Compliance platforms, security tools
Audit (Type 1)	$20,000 - $50,000	CPA firm fees
Audit (Type 2)	$30,000 - $75,000	CPA firm fees
Total first year	$50,000 - $200,000	Varies by company size

Reality check: Yes, it's expensive. But compare it to the cost of lost deals or a data breach (average cost: $4.45 million in 2024).

"How long does SOC 2 take?"

Starting Point	Time to Type 1	Time to Type 2
Strong existing security	3-4 months	9-12 months
Some security basics	4-6 months	12-15 months
Starting from scratch	6-9 months	15-18 months

"Do we need to hire a full-time security team?"

Not necessarily. Many companies work with external partners (like Atlant Security) who function as an extension of their team. This approach provides expertise without full-time salaries, scales with your needs, and brings experience from many SOC 2 engagements.

"Can we use a compliance automation platform instead of consultants?"

Compliance platforms (like Vanta, Drata, Secureframe) are excellent tools—we recommend them to clients. But they solve a different problem.

What Platforms Do Well	What Platforms Don't Do
Automate evidence collection Track control status Generate reports Monitor continuous compliance	Tell you which controls actually stop hackers Implement controls for you Make judgment calls on your situation Help when things get complicated

Our take: Use a platform AND work with experts. The platform handles the busywork. The experts make sure your security actually works.

How to Choose a SOC 2 Compliance Partner

If you're evaluating firms to help with SOC 2, here's what to look for:

Question to Ask	Why It Matters
"How many SOC 2 engagements have you completed?"	Experience matters—look for 20+ minimum
"Will you help implement controls, or just advise?"	Advisory-only = you're still doing the work
"Do you have experience in our industry?"	Industry-specific requirements matter
"What happens if we find issues during the audit?"	You want a partner who stays until you pass
"Can you share references from similar companies?"	Social proof from peers

🚩 Red Flags to Watch For

Firms that guarantee certification in 4 weeks (unrealistic)
Consultants who've never actually gone through a SOC 2 audit themselves
Anyone who says you don't need to change anything
Vendors who push their platform without understanding your needs

Why Companies Choose Atlant Security for SOC 2

We approach SOC 2 differently than most consulting firms.

Our philosophy: The certificate is the outcome. The security is the goal.

Many firms focus purely on passing the audit—implementing the minimum controls needed to check boxes. We focus on building security that actually protects your company. The SOC 2 certificate is a natural byproduct of doing security right.

What working with us looks like:

1. We Start With Your Business

Not every company needs the same controls. A fintech company has different risks than a marketing SaaS. We tailor the approach.

2. We Implement Alongside You

When you need to deploy MFA, configure logging, or write an incident response plan, we're doing it with you—not just sending a template.

3. We Make Practical Recommendations

That fancy $200,000/year SIEM platform? You probably don't need it. We recommend tools that fit your size and budget.

4. We Stay Until You're Certified

Our engagement doesn't end when we hand over a readiness report. We're with you through the audit, handling any issues that come up.

5. We Focus on Real Security

Every control we implement is something that would actually help if an attacker targeted your company. No checkbox exercises.

Ready to Start Your SOC 2 Journey?

If you've read this far, you're probably serious about SOC 2. Here's how to take the next step:

Free SOC 2 Readiness Assessment

We offer a complimentary 30-minute consultation where we'll understand your current security posture, identify the SOC 2 criteria relevant to your business, provide a rough timeline and budget estimate, and answer your specific questions.

No sales pitch. No pressure. Just an honest conversation about whether SOC 2 makes sense for you.

Schedule Your Free Assessment →

Final Thoughts

SOC 2 compliance isn't just about satisfying a checkbox on a procurement form. It's about building a security program that:

Protects your customers' data
Protects your company's reputation
Enables you to compete for enterprise business
Reduces your actual risk of a breach

The companies that thrive in today's B2B landscape are the ones that take security seriously. SOC 2 is how you prove it.

Whether you're just starting to explore SOC 2 or you're ready to begin the compliance process, we're here to help.

About the Author

Alexander Sverdlov is the founder of Atlant Security. He has authored two information security books, spoken at the largest cybersecurity conferences in Asia, and served as a panelist at a United Nations cybersecurity event. Previously, he worked in Microsoft's security consulting team and served as an external cybersecurity consultant for the Emirates Nuclear Energy Corporation.

Last updated: March 2026

Which companies should comply with SOC2?