What Is a Cloud Data Room?

08 Oct What Is a Cloud Data Room?

A cloud data room is a cloud service specifically designed to facilitate the storage and sharing of confidential business data in a secure environment. They are used to support due diligence in M&A deals, IPOs, and legal proceedings. However, they can be utilized in any situation that requires the secure and efficient handling of sensitive documents.

As with any other cloud-based program such as a virtual data room, it is extremely scalable and easy to access. All you require is an internet connection. However, unlike traditional laptops, desktops, and servers that can 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 as well as multiple backups to avoid any accidental loss of data.

As well as this enhanced security, a digital data room comes with a variety of features that can help the processes dealmakers manage. They include a Q&A section as well as advanced permission controls as well as bookmarks and notes and a detailed record of cloud data room activity. Many cloud storage providers provide a higher quality of customer support than traditional cloud storage, with multilingual support via phone, email and in-app.

To identify a reliable cloud data room provider, you should checking whether they have SOC 2 certification and ISO 27001 accreditation. This is an independent test that tests the capability of a company to guard against threats to your sensitive data and confirms their compliance with internationally recognised best practices.