Cloud data rooms are cloud-based solutions that are specifically designed to store and exchange confidential business information in an environment of security. They are utilized to aid in due diligence during M&A deals, IPOs and legal proceedings. However, they can be used in any situation needing the secure and efficient handling of sensitive documentation.
Like other cloud-based applications such as a virtual data room, it is extremely scalable and simple to access – all you need is an internet connection. The data stored in the cloud, unlike traditional desktops, laptops and servers, are secured by multiple layers security. This includes encryption and firewalls as well as multiple backups to prevent any accidental data loss.
In addition to this increased security, a virtual room has a variety of features designed to support the processes that dealmakers use. They include a Q&A section, advanced permission controls and bookmarks and notes. They also provide detailed analysis of the activities. They also offer a more extensive level of support than traditional cloud storage options with a variety of providers offering in-app support via phone, email, or multilingual assistance and dedicated teams and managers.
It is essential to verify whether a data room in the cloud service provider is accredited with ISO 27001 and SOC 2 accreditation. This is an independent test that tests the ability of a service to defend against threats to your sensitive data and confirms their compliance with internationally recognized best practices.