A cloud data room is a cloud solution specifically designed for the storing and sharing of confidential business data in a safe environment. They are used to aid due diligence during M&A transactions, IPOs and legal proceedings, however they can be utilized in any scenario that requires the efficient and secure management of sensitive documentation.
Like other cloud-based applications that is available, a virtual data space is extremely scalable, and easy to access – all you require is an internet connection. However, unlike traditional desktop computers, laptops and servers that could be damaged or stolen from your office, the data stored in the cloud is secured by a variety of security layers. This includes firewalls and encrypted transmissions and multiple backups in order to protect against accidental loss of data.
Alongside this improved security, a virtual data room comes with a variety of features that can help the processes dealmakers manage. They include a Q&A section along with advanced permissions controls and notes and bookmarks. They also provide precise analysis of the activities. They also provide a much more extensive level of support than traditional cloud site storage solutions as many providers provide in-app, phone, and email multilingual support and dedicated teams and managers.
It is important to determine whether a data room in the cloud service provider is accredited with ISO 27001 and SOC 2 accreditation. This is an independent audit that assesses the ability of a service to guard against threats to your sensitive data and confirms their compliance with internationally accepted best practices.