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The Differences Between Data Rooms and Cloud Storage

The choice between a cloud or virtual data room storage depends on the type of business process and documents you’ll need to manage. In some cases the virtual data room provides better security than traditional cloud technology. However, there are instances when a standard cloud storage option might be more appropriate. You should take the time to learn the differences between the two types of solutions to determine which one is the best for your company.

Improve organizational capabilities

In a VDR you can organize documents into folders and assign permission profiles based on job title and. This means that users only have access to the documents that they require to fulfill their duties and minimizes the risk of sensitive information being exposed to unintended parties. This is an important benefit that data rooms offer over cloud storage applications like Dropbox and Google Drive.

VDRs support the due diligence process in M&A deals as well as other financial transactions by allowing you to exchange sensitive documents with other parties in a secure environment. This lets you prevent leaks of information and also close deals faster. Advanced security features, such as watermarking (which can include the recipient’s email address) and screen-snap prevention are provided in all data rooms to prevent the misuse of confidential information.

Certain data rooms, such as FirmRoom and iDeals provide comprehensive analytics that go beyond the basic usage statistics. They let you monitor user activity at a granular level, such as which documents are being looked at and how long they have been viewed for. These data can help you identify the most important content, and set up follow-up meetings with the relevant stakeholders.