The choice between a cloud-based or virtual dataroom storage is dependent on the type and nature of business documents or procedures that you’ll be managing. In some cases a virtual data space is the best choice because of the enhanced security features that it offers in comparison with conventional cloud technology. There are instances when a more simple solution for cloud storage is more appropriate. In any case, you need to spend time to understand the differences between these kinds of solutions so that you can determine which one is the best for your business.
Improve organizational capabilities
In a VDR, you can organize documents into folders that have distinct permission profiles according to job title and. Users will only have access to the documents they require to carry out their duties, thus reducing the possibility that sensitive information is exposed to unintended third parties. This is a key advantage that data rooms provide over cloud storage apps such as Dropbox and Google Drive.
VDRs help in the due diligence process in M&A deals as well as other financial transactions by providing the ability to exchange sensitive 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 such as watermarking, which could include the recipient’s email address, and screenshot prevention to stop the misuse of confidential information.
Certain data rooms, such as FirmRoom and iDeals provide comprehensive analytics that go beyond basic usage statistics. They let you monitor the activity of users at a very fine scale, including the type of documents are being looked at and the length they have been looked at for. These insights can help you identify the most important content, and schedule follow-up meetings with people who are involved.