Managed IT Services Blog by Rutter Networking Technologies

Massachusetts Business Compliance Guide: SOC 2, HIPAA, ISO 27001, and 201 CMR 17.00 Explained

Written by Rutter Technologies | December 9, 2025

Understanding the Core Compliance Requirements for Massachusetts Businesses

Organizations throughout Massachusetts face an expanding set of data protection requirements. Whether you handle financial information, protected health information, student records, or personal data belonging to Massachusetts residents, you need a security program that meets legal requirements, satisfies vendor due diligence, and supports long-term growth.

SOC 2, HIPAA, ISO 27001, and the state’s data security regulation known as 201 CMR 17.00 are four of the most important frameworks that businesses encounter. While each strengthens security and operational resilience, they differ significantly in purpose, scope, and legal status.

This guide explains each framework, clarifies when each applies, and helps Massachusetts organizations understand how to build a unified, efficient compliance program. 

What These Frameworks Actually Require and Who Needs Them

Although these frameworks are often grouped together, they serve different functions. Some are required by law. Others are voluntary but widely expected. Some result in certification, others in attestation. Understanding these distinctions will help you choose the right path.

RutterNet’s compliance and IT experts can help you deploy, configure, and manage Purview effectively to your organization meets both technical and regulatory requirements.

Reach out to an expert, or request a free consultation.

 

SOC 2 Explained

What SOC 2 Is

SOC 2 is an attestation report issued by a licensed CPA firm. It evaluates how well a service organization designs and operates controls aligned with the Trust Services Criteria that include Security, Availability, Processing Integrity, Confidentiality, and Privacy.

SOC 2 is not a certification. It is an independent attestation of your control environment.

SOC 2 Type I vs Type II

  • Type I evaluates design at a single point in time.

  • Type II evaluates design and operating effectiveness over 3 to 12 months and is typically required in enterprise RFPs.

 

Who Needs SOC 2

  • SaaS companies

  • MSPs and IT service providers

  • Cloud and hosting providers

  • Professional services firms handling sensitive client data

If your prospects ask for security questionnaires or vendor assessments, SOC 2 Type II is usually required.

HIPAA Explained

What HIPAA Is

HIPAA is a United States federal law that requires organizations to protect protected health information using administrative, physical, and technical safeguards.

HIPAA applies to both:

  • Covered Entities, such as healthcare organizations

  • Business Associates, which include MSPs, SaaS providers, hosting providers, consultants, and any organization that touches PHI or ePHI

Who Needs HIPAA Compliance

You must comply if your organization:

  • Stores, processes, transmits, or accesses PHI

  • Supports healthcare clients

  • Signs Business Associate Agreements

HIPAA is mandatory, not optional.

ISO 27001 Explained

What ISO 27001 Is

ISO 27001 is the leading international standard for building and maintaining an Information Security Management System (ISMS). Unlike SOC 2, ISO 27001 leads to formal certification by an accredited body.

ISO 27001:2022 Update

ISO 27001 was last updated in 2022, modernizing security controls for cloud environments, threat intelligence, and secure development.

Who Needs ISO 27001

  • Companies responding to global procurement programs

  • Biotech and research organizations

  • Firms with international customers

  • Organizations seeking a structured ISMS

ISO 27001 pairs well with SOC 2, and many organizations pursue both.

Massachusetts 201 CMR 17.00 Explained

What the Regulation Requires

Massachusetts 201 CMR 17.00 is a state data security regulation applying to any organization storing the personal information of MA residents. It requires:

  • A Written Information Security Program (WISP)

  • Risk assessments

  • Access controls

  • Encryption of personal information in transit and on portable devices

  • Firewalls and malware protection

  • Employee security training

  • Incident response procedures

Who Must Comply

Every organization that stores personal information of Massachusetts residents must comply, whether or not they are located in the state.

Many of these requirements align naturally with SOC 2 and ISO 27001 controls.

Improved Comparison Table: Legal Requirements, Best Uses, and Massachusetts Scenarios

SOC 2 vs HIPAA vs ISO 27001 vs 201 CMR 17.00

Framework

Legally Required For

Best For

Primary Drivers

Massachusetts Use Case

SOC 2 (Type I / II)

Not legally required

SaaS, MSPs, IT providers

Vendor due diligence, enterprise RFPs

Tech companies proving security posture to enterprise clients

HIPAA

Covered entities and business associates

Healthcare and healthcare-adjacent IT providers

Federal compliance, PHI safeguards

Clinics, hospitals, EHR vendors, MSPs supporting healthcare

ISO 27001:2022

Not legally required

Global, regulated, or fast-growing organizations

International RFPs, structured ISMS

Biotech, research institutions, multinational firms

201 CMR 17.00

All businesses handling MA resident data

Any organization with Massachusetts customers

State law compliance

Retailers, financial institutions, SaaS platforms serving MA

 

Which Framework Should You Choose?

Use this quick decision guide:

  • Choose SOC 2 Type II if you process customer data or sell to enterprise clients.

  • Choose HIPAA if you handle PHI or support healthcare organizations.

  • Choose ISO 27001:2022 if you operate globally or want a formal ISMS.

  • You must comply with 201 CMR 17.00 if you have any Massachusetts customer data.

  • Choose SOC 2 + ISO 27001 if you want cross framework efficiency with shared controls and evidence.

Many organizations reuse 70 to 80 percent of their controls across these frameworks.

How RutterNet Helps Massachusetts Organizations Build a Unified Compliance Program

RutterNet helps organizations combine SOC 2, HIPAA, ISO 27001, and 201 CMR 17.00 into a single, efficient control framework.

We help you:

  • Build unified controls mapped to all relevant frameworks

  • Conduct readiness assessments for SOC 2, HIPAA, and ISO 27001

  • Create or update Written Information Security Programs (WISP)

  • Leverage Microsoft Compliance Manager and Microsoft Purview to technically enforce and monitor administrative safeguards

  • Map Microsoft 365 compliance scores directly to SOC 2 and HIPAA controls

  • Prepare evidence packages for auditors

  • Train teams to maintain continuous compliance

RutterNet supports organizations across Boston, Cambridge, Worcester, and New England.

Frequently Asked Questions

Do Massachusetts companies need SOC 2 or ISO 27001?

Not legally, but enterprise customers often require SOC 2 Type II. International procurement teams often expect ISO 27001 certification.

Is HIPAA the same as SOC 2?

No. HIPAA is federal law. SOC 2 is a voluntary attestation. They overlap but serve different purposes.

Can one program cover SOC 2, HIPAA, and ISO 27001?

Yes. Most controls overlap and can be combined into one efficient security program.

Does 201 CMR 17.00 apply to out of state companies?

Yes. Any business with Massachusetts resident data must comply.

Ready to Build a Stronger Compliance Program?

RutterNet helps Massachusetts organizations navigate SOC 2, HIPAA, ISO 27001, and 201 CMR 17.00 with a single, scalable compliance strategy.

Schedule a Compliance Readiness Assessment to get a clear roadmap tailored to your environment.

If your organization is ready to unify governance and security under one platform, Microsoft Purview is the right place to start.