Cloud data rooms are cloud-based services that are specifically designed to store and share sensitive business information in a secure environment. They’re used to facilitate due diligence in M&A transactions, IPOs and legal proceedings, but they can be employed in any scenario that requires the secure and streamlined management of sensitive documents.
Virtual data rooms are highly scalable, and they can be accessed with an internet connection. Data stored in the cloud, unlike traditional laptops, desktops and servers, is protected by multiple layers security. This includes encryption and firewalls as well as multiple backups to prevent any accidental data loss.
Alongside this enhanced security, a digital data room has a variety of features that are designed to aid the processes that dealmakers use. They include a Q&A section, advanced permission controls and notes and bookmarks. They also provide comprehensive monitoring of all activities. They also provide a much more extensive level of support than traditional cloud storage options, with many providers offering in-app telephone, email, and multilingual assistance and dedicated teams and managers.
It’s important to check if a cloud data room service provider is accredited with ISO 27001 and SOC 2 accreditation. This is an independent review that determines the capability of a provider to protect sensitive data from threats and demonstrates their conformity with internationally recognized standards.