The decision to use a cloud or a virtual data room storage is contingent on the type of documents and business processes you’ll need to manage. In certain circumstances it is the case that a virtual data room is the better option due to the superior security features it provides when compared to traditional cloud technology. There are times where a simple solution for cloud storage is better. In any case, it is important to spend the time to understand the differences between these types of solutions so that you can determine which one is the best for your business.
Improved capabilities of the organization
In a VDR you can arrange documents into folders with distinct permission profiles in accordance with job title and. This means that users only be able to access the documents required to do their job and minimizes the risk of sensitive information being disclosed to unintentional users. This is the biggest advantage data rooms have over cloud storage apps like Dropbox or Google Drive.
VDRs help in the due diligence process of M&A deals as well as other financial transactions by allowing you to exchange confidential documents with other parties in a secure setting. This helps you avoid leaks of information and make transactions faster. Advanced security features, such as watermarking (which could include a recipient’s email address) and screen-snap prevention are available in the majority of data rooms to help prevent misuse of confidential information.
Some data rooms, such as FirmRoom and iDeals, provide extensive analytics that go far beyond the standard usage statistics. You can track user activities up to the granularity documents viewed and how long. These details can be helpful in determining the most important content, and to arrange follow-up meetings with stakeholders.