What Is a Cloud Data Room?
A cloud data room is a cloud-based solution specifically designed for the storing and sharing of confidential business data in a secure setting. They can be used to assist with due diligence in M&A deals, IPOs and legal proceedings but can be utilized in any circumstance that requires the secure and efficient handling of sensitive documents.
Like other cloud-based applications, a virtual data room is highly scalable and easy to access. All you require is an internet connection. The data stored in the cloud, unlike traditional laptops, desktops and servers, is protected by multiple layers of security. This includes firewalls and encrypted transmissions as well as multiple backups in order to avoid any accidental loss of data.
In addition to this increased security, a digital data room has a variety of features that can help the processes dealmakers handle. It includes a Q&A feature, advanced permission controls including bookmarks, notes, and detailed tracking of activity. They also provide a much higher level of customer support than traditional cloud storage solutions with a variety of providers offering in-app phone, email, and multilingual support and dedicated teams and managers.
It is important to determine whether a cloud-based data room provider has ISO 27001 and SOC 2 accreditation. This is an independent test that tests the capability of a service to defend against threats to your personal data and confirms their compliance with internationally accepted best practices.
