The Differences Between Data Rooms and Cloud Storage

The decision to use a cloud or a virtual data space storage is based on the type of documents and business procedure that you need to manage. In some instances, the virtual data room provides better security than standard cloud technology. There are times when a simple solution for cloud storage is more appropriate. You should take the time to understand the differences between the two types of solutions to decide which is ideal for your business.

Enhance organizational capabilities

In a VDR you can organize your documents in folders and assign permission profiles based upon the job title and duties. This means that users only have access to the documents required to fulfill their duties and minimizes the risk of sensitive information being exposed to unintentional third parties. This is the primary benefit data rooms enjoy over cloud storage applications like Dropbox or Google Drive.

VDRs assist you with due diligence in M&A transactions and other financial transactions. They allow you to exchange sensitive documents in a secure environment. This helps you prevent leaks of information and also to close deals faster. Most data rooms come with advanced security features like watermarking, which may include the recipient’s email address and screen-shot prevention to ensure the safety of confidential information.

Certain data rooms, like FirmRoom and iDeals provide comprehensive analytics that go beyond usage statistics. You can track user activities down to the level of documents viewed and for how long. These detailed insights can be helpful in determining the most important content and schedule follow up meetings with the key stakeholders.

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