Excaltech

SOC 2 Type II Certification

Origin

SOC 2 (Service Organization Control 2) was developed by the American Institute of Certified Public Accountants (AICPA) in 2011 as part of their Service Organization Control reporting framework. It was created to address the growing need for standardized security and privacy assurance as more organizations began storing data in the cloud and relying on third-party service providers. The certification was designed to evaluate how well service organizations manage customer data based on five "Trust Services Criteria": security, availability, processing integrity, confidentiality, and privacy. Type II specifically requires organizations to demonstrate these controls over a minimum period of time (typically 3-12 months), rather than just at a single point in time.

Industry Value

SOC 2 Type II certification is highly valued because it provides independent verification that a company has implemented and maintained robust security controls over an extended period. For service providers, achieving this certification demonstrates credibility and commitment to data protection, often becoming a competitive differentiator and a prerequisite for winning enterprise clients. Many organizations, particularly in healthcare, finance, and technology sectors, require their vendors to be SOC 2 Type II compliant before sharing sensitive data or establishing business relationships. The certification gives customers confidence that their service providers have been audited by qualified third parties and meet industry-recognized standards for protecting information assets.