The IT industry can sometimes feel like the Wild West. With minimal regulation, anyone can hang out a shingle and call themselves an IT expert. This lack of oversight leaves business owners in a tough spot: How do you separate genuine professionals from amateurs? That’s where SOC 2 audits come in.
For Managed Service Providers (MSPs), undergoing a SOC 2 audit demonstrates a commitment to following rigorous standards for managing and protecting their clients’ data. It’s a way for MSPs to stand out in a crowded industry and provide business owners with peace of mind knowing they’re working with a trusted partner. Whether it’s a Type I or Type II audit, the SOC 2 framework serves as tangible proof that your IT partner isn’t just talking about security—they’re actively demonstrating it.
What Is SOC 2, and Why Should You Care?
SOC 2, short for System and Organization Controls 2, is a compliance framework developed by the American Institute of Certified Public Accountants (AICPA). It’s designed to ensure that service organizations—like MSPs—follow best practices for managing and securing sensitive customer data.
Why does this matter to you, the business owner? Because in an industry where anyone can claim to be an IT expert, SOC 2 compliance provides a way to verify those claims. It’s not just about ticking a compliance box; it’s about holding your IT provider accountable to real, measurable standards.
The framework revolves around five trust services criteria:
- Security: Preventing unauthorized access to systems and data
- Availability: Ensuring systems are operational when needed
- Processing Integrity: Guaranteeing accurate and authorized data processing
- Confidentiality: Protecting sensitive business information
- Privacy: Properly managing personal information
By choosing an MSP that’s SOC 2 compliant, you’re selecting a provider that has gone the extra mile to show they’re serious about keeping your data safe.
What’s the Difference Between Type I and Type II
SOC 2 Type I: A Snapshot of Control Design
SOC 2 Type I audits focus on whether an MSP has the right security controls in place at a specific moment in time. Think of it as a snapshot. It’s a way for an IT provider to demonstrate that they’ve built a documented framework for securing and managing client data.
This type of audit is ideal for newer MSPs or those just starting their compliance journey. It’s quicker and less resource-intensive than a Type II audit, giving the provider an opportunity to validate their security controls without a lengthy testing period. While it doesn’t show how well those controls operate over time, it’s a great starting point for proving their commitment to security.
If your MSP has a Type I report, it’s a good sign they’re taking compliance seriously, but it’s worth asking about their plans to move toward Type II.
SOC 2 Type II: Proof of Consistency Over Time
SOC 2 Type II audits take things a step further. Instead of looking at controls on a single day, Type II evaluates whether those controls are working effectively over a period of time, usually six to 12 months. This type of audit demonstrates that an MSP isn’t just talking the talk—they’re walking the walk, consistently.
For business owners, this is the gold standard. A Type II attestation report provides assurance that your IT provider maintains their security posture over time. It’s a sign that the MSP you’re trusting with your critical data isn’t cutting corners or skimping on their processes.
For businesses that handle sensitive or regulated data, a Type II report is often the safer choice. It’s a sign that the MSP is in it for the long haul, with the processes in place to manage risks over time.
Why SOC 2 Type II Matters
In an industry with no licensing requirements or formal regulations, it’s easy for someone with limited experience to set up shop and claim to be an expert. This puts your business—and its sensitive data—at risk. When you’re choosing an MSP, SOC 2 Type II compliance acts as a filter. It’s a way to separate the true professionals from the fly-by-night operators.
SOC 2 Type II compliance means the MSP isn’t just protecting your data on a whim; they’re following an established framework. It proves they’ve invested time, money, and effort into ensuring they can meet high standards for security and reliability.
How to Choose the Right MSP with SOC 2 Compliance
When evaluating MSPs, asking about their SOC 2 compliance is a great starting point. If they’ve undergone a Type I or Type II audit, it shows they’re willing to hold themselves to a higher standard. Here are a few tips to ensure you’re making the right choice:
- Ask for the Attestation Report: Any MSP with SOC 2 compliance should be able to provide their report (or at least a summary). This will give you insights into what’s covered and whether their practices align with your business needs.
- Look for Long-Term Commitment: A Type I audit is a good sign, but a Type II report provides greater assurance. If your business handles sensitive data, prioritize MSPs with a Type II audit.
- Consider the Framework: Ask how the MSP incorporates SOC 2 principles into their day-to-day operations. This will help you gauge whether their compliance is more than just a checkbox.
Conclusion
For MSPs, SOC 2 compliance isn’t just about meeting industry standards—it’s about demonstrating accountability and professionalism in an unregulated industry. For business owners, it’s a way to ensure you’re partnering with a provider who takes your data security as seriously as you do.
By choosing an MSP with SOC 2, especially Type II, compliance, you’re not just buying IT services—you’re investing in peace of mind.