The choice between a cloud or a virtual data space storage depends on the type of documents and business procedures that you need to manage. In some instances, the virtual data room offers greater security than the standard cloud technology. However, there are instances when a more basic cloud storage system could be more appropriate. In any case, you need be sure to know the differences between these types of solutions so that you can decide what is best for your business.
Improved organizational capabilities
In a VDR you can arrange documents in folders and assign permission profiles based upon the job title and duties. This means that users only access documents required to perform their duties and minimizes the chance of exposing sensitive information to unintentional parties. This is an important benefit that data rooms have over cloud storage platforms such as Dropbox and Google Drive.
VDRs aid you in performing due diligence in M&A transactions and other financial transactions. They let you exchange sensitive documents in a secure environment. This helps you avoid leaks of information and make deals faster. Many data rooms offer advanced security features such as watermarking, which may include the recipient's email address and screenshot protection to ensure the safety of confidential materials.
Certain data rooms, such as FirmRoom and iDeals provide comprehensive analytics that go beyond usage statistics. You can track user activities all the way to the granularity of documents viewed, and how long. These insights can help you determine the most important content and arrange follow-up meetings for key stakeholders.