Cbeyond Takes a Position on SOC 2 vs. SSAE 16 for Cloud Security

You can find my brother's song "My Fair Lady", that is featured at the end of the video here: (http://bit.ly/y3uiOg)


  1. CBeyond has also successfully undergone a SOC III, and you can view the SOC III Seal and download Cbeyond's SOC III report from www.cbeyond.net.

  2. Thanks for the info Teddy! I heard you did a great job representing Cbeyond at the ISCACA chapter meeting SOC reports discussion panel. I wish I could have been there!

  3. Great interview and good perspective on the value of a SOC2 on security for cloud providers.

    The premise that the was a choice between SSAE 16 and SOC 2 shows me that there is still much education to do related to this area. SSAE 16 would only apply if their service was being used in conjunction with internal controls over financial reporting (ICFR). So for the majority of what Cbeyond does, I can see the SOC2 applying versus the SSAE 16--this is an obvious choice. However, I don't think the opposite applies, if they were hosting an application that was part of ICFR, I don't think their customer could take the SOC 2(especially one only addressing the security principle) in place of an SSAE 16 report.

  4. Thanks for your comment Donny. I agree that it is not always an either/or decision. The problem is that service auditors have allowed service organizations to include non-ICFR controls in their SSAE 16 reports, and the industry has not changed from what it was under SAS 70. If you let organizations include non-ICFR controls in SSAE 16, of course they are going to rely on it for non-ICFR assurance.

    I wish that service auditors were as vigilant about not relying on SOC 1 for non-ICFR as they are about not relying on SOC 2 for ICFR.

    For that matter, the industry cannot even agree on what ICFR is, or even agree on an approach to determining what ICFR is such as the DoRS method that I have proposed.

  5. It is little ambiguous and puzzled while discussing the control as ICFR or non-ICFR, and becomes one time consuming debate.

    Please share your experience and understanding as how (or what approach) you would advise someone to identify and separate out ICFR and non-ICFR controls.

  6. Navneet, Thank you very much for your comment. I wrote a whitepaper on the approach I used called the Degrees of Risk Separation that can be downloaded here: http://bit.ly/KKrl4N

  7. Blogs are good for every one where we get lots of information for any topics nice job keep it up !!!


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