The decision between a cloud or a virtual data room storage is contingent on the type of documents and business procedures that you have to manage. In some cases, a virtual data room is the better option because of the improved security features it has in comparison to traditional cloud technology. However, there are instances when a standard cloud storage solution might be more appropriate. In any event, you have to take the time to comprehend the differences between these kinds of solutions to help you decide which one is right for your company.
Improve the capabilities of your organization
In a VDR you can arrange documents into folders and assign permission profiles based upon job title and duty. This means that users only have access to the files that they need to do their job and reduces the risk of exposing sensitive information to unintended parties. This is a key advantage that data rooms have over cloud storage apps such as Dropbox and Google Drive.
VDRs help you with due diligence in M&A transactions and other financial transactions. They let you exchange sensitive documents in a safe environment. This allows you to protect yourself from leaks of information, and to close deals more quickly. Advanced security features such as watermarking (which can include the recipient’s email address) and screenshot protection are available in a majority of data rooms to stop misuse of confidential material.
Some data rooms such as FirmRoom or iDeals offer extensive analytics which go beyond the basic usage statistics. You can track user activities all the way to the granularity of documents viewed and for how long. These insights can help you decide on the most important content, and plan follow-up meetings with people who are involved.