Is Compliance as a Service the Best Way to Simplify Frameworks Like SOC 2?
Compliance is a big deal for businesses today. Rules and frameworks change fast. Staying on top of them takes a lot of time and money. Many leaders find this hard to do. In fact, most business leaders say compliance has grown more complex over the past three years. Manual tracking is slow and often leads to mistakes. That is why compliance as a service is becoming a smart choice for many companies.
Drata is one platform leading this change. It automates compliance and security. The system works in the cloud and helps businesses manage over 20 different frameworks. These include well-known ones like HIPAA, SOC 2, and GDPR.
Instead of checking rules by hand, Drata does the work for you. It links with the tools your company already uses. You can connect it to more than 300 different apps. This lets the platform collect evidence and watch your systems automatically.
One of Drata’s smart features is called “compliance as code.” It works with tools like GitHub. This feature spots compliance problems in your code and helps fix them right away. This kind of automation makes the whole process much faster. Drata says its tools speed up compliance by 12 times.
The numbers show that businesses like what Drata offers. In the last fiscal year, 2,500 new customers joined. The company now has over 7,000 customers in total. Last February, Drata reached $100 million in annual recurring revenue. In December 2022, they raised $200 million in funding. This gave the company a value of $2 billion.
The push toward automated compliance is strong. It is part of a larger trend called Compliance as a Service.
Why is this trend growing? Managing compliance by hand is tough. Almost 60% of large companies say they need better coordination in their compliance models. New AI features make automation even better. AI can handle repetitive tasks and flag issues early.
Because of this demand, several startups offer platforms to automate and integrate compliance. These tools work across a whole business ecosystem. Here are three other startups making a big impact in this space:
- SumSub: This platform focuses on identity checks and compliance. It is built for fintech, crypto, and trading companies. SumSub handles KYC (Know Your Customer) and AML (Anti-Money Laundering) screenings. It also watches transactions and uses AI to spot strange behavior.
- Vanta: Vanta calls itself a “trust management platform.” It supports over 35 different frameworks. It uses AI to help with security reviews and questionnaires. The results for customers are very strong. On average, Vanta users see a 526% return on investment within three years. Vanta’s last valuation was $4.15 billion.
- Sprinto: Sprinto is a platform that supports over 200 frameworks. It is highly connected. It has more than 1,000 integrations. This lets Sprinto check and watch compliance controls automatically. In April 2024, Sprinto raised $20 million in Series B funding to grow its business.
Compliance does not have to be a nightmare. Automated platforms like Drata, SumSub, Vanta, and Sprinto offer a better way. They save time, reduce errors, and keep businesses secure. As rules keep changing, these tools provide a safe path forward.