Cloud data rooms are cloud-based solutions that are specifically designed to store and share confidential business information within a safe environment. They are utilized to aid in due-diligence in M&A deals, IPOs and legal proceedings but can be used in any scenario that requires the safe and efficient handling of sensitive documents.
Virtual data rooms are highly scalable, and cloud data storage they can be accessed via an internet connection. But unlike traditional laptops, desktops and servers that could be damaged or stolen from your office, data stored in the cloud is secured by multi-layered security measures. This includes firewalls and encrypted transmissions and multiple backups to avoid any accidental data loss.
A virtual data room offers a number of features to aid the processes dealmakers manage. They include a Q&A section with advanced permissions controls as well as bookmarks and notes as well as detailed tracking of activities. Many cloud storage providers provide a higher level of customer service than traditional cloud storage, with multilingual support via email, phone and in-app.
To locate a reputable cloud data room provider, you should verifying whether they hold SOC 2 certification and ISO 27001 accreditation. This is an independent audit that evaluates the capability of a company to protect against the encroachment of your sensitive information and proves their conformity with internationally recognised best practices.