The decision to use a virtual data room or cloud storage is based on the type of documents and business procedures you’ll need to manage. In some cases the virtual data room is the better choice due to the superior security features it provides in comparison with conventional cloud technology. There are times when a simple solution for cloud storage is more appropriate. It is important to understand the differences between the two types of solutions to decide which is most suitable for your business.

Improve the capabilities of your organization

In a VDR it is possible to organize documents into folders with distinct permission profiles depending on the job title and duty. Users will here only have access to files they need to perform their job, reducing the possibility that sensitive information could be exposed to unintentional third parties. This is the primary benefit data rooms enjoy over cloud storage apps such as Dropbox or Google Drive.

VDRs assist you in ensuring due diligence in M&A transactions as well as other financial transactions. They permit you to exchange sensitive documents 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 a recipient’s email address) and screen capture prevention are available in the majority of data rooms to help prevent misuse of confidential documents.

Some data rooms such as FirmRoom or iDeals offer extensive analytics, which go beyond mere usage statistics. You can track user activities up to the granularity documents viewed and how long. These in-depth insights can be useful to identify the most important content and organize follow-up meetings with key stakeholders.