TL;DR
Compliance means meeting security requirements from laws, industry standards, or customer contracts. Common frameworks include SOC 2 for SaaS, PCI-DSS for payments, HIPAA for healthcare, and GDPR for EU data. Compliance requires documented policies, implemented controls, and regular audits. It is often a business requirement to close enterprise deals.
The Simple Explanation
Different industries have rules about how you must protect data. If you handle credit cards, you must follow PCI-DSS. If you serve healthcare companies, you need HIPAA. Enterprise customers want SOC 2 reports. Compliance means proving you meet these requirements through audits and certifications.
Common Compliance Frameworks
| Framework | Applies To | Focus |
|---|---|---|
| SOC 2 | SaaS/service providers | Trust services criteria |
| ISO 27001 | Any organization | Information security management |
| PCI-DSS | Payment handlers | Cardholder data protection |
| HIPAA | Healthcare | Protected health information |
| GDPR | EU data handlers | Personal data protection |
| SOX | Public companies | Financial controls |
Compliance vs Security
Compliance:
- Meeting minimum requirements
- Checkbox-based
- Point-in-time validation
- Required by external parties
Security:
- Protecting your systems
- Risk-based
- Continuous improvement
- Internal motivation
You can be compliant but insecure. Good security usually includes compliance.
Compliance Requirements
- Policies: Documented security policies
- Controls: Technical and organizational controls
- Access management: User access controls and reviews
- Encryption: Data protection at rest and in transit
- Monitoring: Logging and alerting
- Incident response: Documented procedures
- Training: Security awareness programs
- Vendor management: Third-party assessments
Compliance is not optional. Non-compliance can result in fines, lost contracts, and reputational damage. GDPR fines can reach 4% of annual revenue. PCI-DSS non-compliance can mean losing the ability to process payments.
Getting Compliant
- Identify which frameworks apply to your business
- Perform a gap assessment against requirements
- Implement required policies and controls
- Document everything
- Conduct internal audits
- Engage external auditors
- Maintain compliance continuously
What compliance do I need for my SaaS?
Most B2B SaaS companies start with SOC 2, as enterprise customers commonly require it. If you handle payments, add PCI-DSS. Healthcare data requires HIPAA. European customers may require GDPR compliance. Government contracts need FedRAMP. Start with what your customers ask for.
Is compliance the same as security?
No. Compliance means meeting minimum requirements of a standard. Security means actually protecting your systems. You can be compliant but insecure if you only do the minimum. Good security usually leads to compliance, but compliance alone does not guarantee security.
How much does compliance cost?
Costs vary widely. SOC 2 audits typically cost $20,000-50,000 for the audit itself, plus internal costs for preparation and tools. ISO 27001 can be $30,000-100,000+. PCI-DSS depends on your level and scope. Budget for ongoing maintenance costs too, not just initial certification.