The Differences Between Data Rooms and Cloud Storage

The decision between a virtual dataroom and cloud storage is dependent on the type of business documents or procedures that you will be managing. In some instances, the virtual data room offers better security than traditional cloud technology. There are times when a more simple cloud storage solution is better. It is important to understand the differences between the two options to decide which is most suitable for your business.

Enhance organizational capabilities

In a VDR you can organize your documents into folders and assign permission profiles based upon the title of the job and the duty. This means that users will only be able to access the documents they require to perform their duties and minimizes the risk of exposing sensitive information to unintentional users. This is the major benefit that data rooms have over cloud storage applications such as Dropbox or Google Drive.

VDRs assist you in ensuring due diligence in M&A transactions and other financial transactions. They let you exchange sensitive documents in a safe environment. This lets you protect yourself from leaks of information, and close deals quicker. Advanced security features, such as watermarking (which could include a recipient’s email address) and screen capture prevention are provided in all data rooms to stop misuse of confidential materials.

Some data rooms, like FirmRoom and iDeals offer extensive analytics that go beyond the basic usage statistics. They let you track the user’s activity at a fine level, such as which documents are being looked at and for how long they’ve been seen for. These data can help you decide on the most important content, and arrange follow-up meetings for the relevant stakeholders.