A cloud data room is a cloud-based solution specifically designed to facilitate the storage and sharing of confidential business data in a secure environment. They are utilized to aid in due-diligence in M&A deals, IPOs, and legal proceedings, but they can also be used in any situation that requires the safe and efficient handling of sensitive documents.
Virtual data rooms are highly adaptable, and can be accessed with an internet connection. But unlike traditional laptops, desktops, and servers that can be damaged or stolen from your office, the data stored in the cloud is protected with multi-layered security measures. This includes firewalls secure transmissions, encrypted data transmissions, and multiple backups to protect against accidental or malicious data loss.
A virtual data room also offers a number of features that support the processes that dealmakers manage. These include a question and answer area with advanced permission controls as well as notes and bookmarks. They also provide comprehensive monitoring of all activities. They also provide a much higher level of support than traditional cloud storage options with a variety of providers offering in-app phone, email, and 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 audit which determines the capability of a provider to protect sensitive data from adversity and proves their conformity with internationally recognized standards.