The Differences Between Data Rooms and Cloud Storage

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The choice between a cloud or a virtual data space storage is contingent on the type of documents and business procedures that you need to manage. In certain situations the virtual data room is the best option due to the superior security features it offers over conventional cloud technology. However, there are also instances when a standard cloud storage option might be more appropriate. It is important to research the differences between these two options to determine which one is the best for your company.

Improved capabilities for coordinating

In a VDR you can arrange documents in folders and assign permission profiles based upon the job title and duties. Users will have access to the documents they require to carry out their duties, minimizing the chance that sensitive data will be available to unintentional third parties. This is the major benefit data rooms enjoy over cloud storage applications such as Dropbox or Google Drive.

VDRs help in the due diligence process in M&A deals and other financial transactions by allowing you to exchange confidential documentation with the parties in a secure environment. This helps you avoid information leaks and close transactions faster. Many data rooms offer advanced security features like watermarking that can include the email address of the recipient and screen-shot prevention to prevent the misuse or confidential materials.

Some data rooms, such as FirmRoom or iDeals provide extensive analytics, that go beyond basic usage statistics. They let you monitor user activity at a granular scale, including the type of documents are being viewed and how long they’ve been seen for. These insights can help you identify the most important content, and plan follow-up meetings with people who are involved.

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