The decision between a virtual dataroom and cloud storage is dependent on the type of business documents or procedures that you’ll have to manage. In some cases a virtual data space is the best option due to the increased security features it offers in comparison with conventional cloud technology. There are occasions when a simple solution for cloud storage is more suitable. You should take the time to learn the differences between the two kinds of solutions to determine which one is the best for your company.

Increased capabilities of organizational management

In a VDR you can arrange documents into folders that have specific permission profiles based on job title and. Users will only have access to documents required to carry out their duties, which reduces the chance that sensitive data is available to unintentional third parties. This is the main benefit that data rooms have over cloud storage applications such as Dropbox and Google Drive.

VDRs assist in the due diligence process in M&A deals as well as other financial transactions by allowing you to exchange confidential documents with other parties in a secure environment. This allows you to prevent 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 included in most data rooms to prevent the misuse of confidential materials.

Certain data rooms, like FirmRoom and iDeals, provide extensive analytics that go beyond the basic usage statistics. You can track user activities up to the granularity documents viewed and for how long. These data can help you decide on the most important content and schedule follow-up meetings with the relevant stakeholders.

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