SOC 2 is an auditing procedure ensuring that organizations securely manage data to protect the company and the privacy of its clients. Its goal is to make certain that controls are in place to assure security and confidentiality of customer information. For security-conscious businesses, SOC 2 is often an important consideration for selecting a SaaS provider.

Ultimately, SOC 2 compliance is not a requirement for SaaS and cloud-computing businesses. It’s not legally required or mandatory, but some vendors like to see it. Companies should consider complying if they believe it will affect the flow of their business.