The choice between a virtual data room or cloud storage depends on the type of documents and business processes that you have to manage. In some cases it is the case that a virtual data room is the better option because of the improved security features it has over traditional cloud technology. There are instances when a more simple cloud storage solution is better. You should take the time to research the differences between these two types of solutions to decide which is most suitable for your business.

Increased capabilities of organizational management

In a VDR you can organize your documents in folders and assign permission profiles based upon the job title and duties. This means that users only have access to the documents that they require to do their job and minimizes the possibility of sensitive information being disclosed to unintentional parties. This is one of the major advantages that data rooms offer over cloud storage apps like Dropbox and Google Drive.

VDRs help you with due diligence in M&A transactions as well as other financial transactions. They permit you to exchange sensitive documents in a secure environment. This allows you to avoid information leaks and close transactions faster. Advanced security features like watermarking (which can include the recipient’s email address) and screenshot protection are available in the majority of data rooms to help prevent misuse of confidential information.

Some data rooms, such as FirmRoom or iDeals provide extensive analytics, which go beyond the basic usage statistics. You can track user activities down to the granularity pop over here of documents viewed and how long. These detailed insights can be useful to identify the most important content as well as to schedule follow up meetings with key stakeholders.