A cloud data room is a solution in the cloud specifically designed for the storing and sharing of confidential business data in a secure setting. They’re used to support due diligence during M&A transactions, IPOs and legal proceedings, but they can be employed in any scenario that requires safe and efficient management of sensitive documents.
Similar to other cloud-based software such as a virtual data room, it is extremely scalable and simple to access – all you require is an internet connection. Data stored in the cloud unlike traditional desktops, laptops and servers, is secured by multiple layers security. This includes firewalls secure transmissions, encrypted data transmissions, and multiple backups to avoid accidental or malicious loss of data.
In addition to this increased security, a virtual room comes with a variety of features that are designed to aid the processes that dealmakers use. It includes a Q&A feature and advanced permission controls as well as bookmarks and notes and detailed tracking of activity. They also provide a much higher level of support than traditional cloud storage options and many providers offer in-app support via phone, email, or multilingual assistance and dedicated teams and managers.
To find a reputable cloud data room provider, you should verifying whether they hold SOC 2 certification and ISO 27001 accreditation. This is an independent test that tests the capability of a company to safeguard against threats to your personal data and confirms their compliance with internationally accepted best practices.