Cloud Storage vs Virtual Data Rooms

What is cloud storage?

Cloud storage is a cloud-computing model that lets you to store your business sensitive data on the internet through a third party, generally a provider that operates data storage facilities. The advantages of Cloud storage are agility, scalability, and durability, as you can access your data anytime from any location with a secure internet connection. However, the clouds are not wholly virtual. This file-sharing platform hosts servers containing the user data and software. The primary difference from on-premise storage is that the servers are remote. The use of cloud storage services is many, including industrial and domestic. However, it might not be the right solution for everyone. 

What is a Virtual Data Room?

Virtual data room software, also known as an investor data room, is a secure file sharing platform where you can store and share confidential data with trusted third parties. The data room by a reputed data room services provider like DocullyVDR ensures the highest possible security of the data and offers several features to streamline file tracking and manage several projects simultaneously. Common uses of virtual data room include due diligence, fundraising, IPO, and mergers & acquisitions. 

Besides storing confidential data, a data room M&A   offers additional tools and services for tracking and user management, templates, data-gathering instruments, and checklists. 

The differences in security standards:

Security is the main aspect when it comes to choosing reliable tools for file storage.The file-sharing feature is the most differentiating aspect between cloud storage and data room. The cloud storage security is basic compared to the state-of-the-art, bank grade security of a virtual data room service providers like Docully VDR. The many more advanced security features, tracking and encryption give investor data room a huge advantage over cloud storage platform.

Cloud Storage Systems

Pros of using cloud storage platform

• Easy and quick access to data, which can be shared instantly, thereby eliminating process inefficiencies and document duplication
• Ability to integrate with other platforms
• Initially offered free-of-charge and subsequently a relatively low-fee is charged with increase in its usage
• SaaS-based file sharing and storage makes it extremely popular as you can share sensitive information via a group email

Cons of using cloud storage platform

• Security Risks and limited change control are the major drawbacks. Users can delete data which will also delete it for the owner of the data as the data within the platform is synchronised.  DropBox for example was also hacked with 68 million user passwords leaked.
• Users can also share the data with others, without the owner’s permission. This can be a big problem if a large amount of interested parties are expected to access your confidential documentation.
• The deal manager has limited tools available to control the data handling of users.
• The deal manager is not protected against making mistakes themselves, such as prematurely sharing data, or accidentally sharing data with the wrong people.
• The actions are not always recorded against a compliance feed, so there is no reliable traceability or accountability to depend upon.
• Also, cloud storage doesn’t offer many tools or customer support in case you have an issue.

 

Virtual Data Room Providers

In all fairness, it is a fact that different data room service providers offer different sets of functionalities.

Pros of using a Virtual Data Room:

• Top-quality security through compliance with international security standards and certifications
•  Users are protected from making mistakes such as inadvertently sharing information with the wrong users due to the fail-safe, secure file sharing platform functionality
• Different permission levels to protect data from unwanted exposure
• Advanced document management tools
• Another major advantage of using a virtual data room is granular tracking. This enables to know who is viewing your document, when they viewed it and how often they have viewed it gives you a sense of what is important during the deal.
• It also ensures that your deal documentation meets all legal and procedural compliances.
• 24/7 responsive customer support

Cons of using Virtual Data Room Provider

• Generally, there is a lot of functionality available which can cause a trade-off between security and user experience. Data Room M&A are built specifically for the due diligence process so the higher level of functionality and security can result in a higher fee than that of cloud storage services. However, it is a proven fact that a virtual data room services provider like DocullyVDR adds value to your deal.

The differences in pricing

There is a great deal of difference between the pricing of Cloud storage and the virtual data room. For data rooms, there are different pricing plans different and subscription options, allowing you to choose the one that suits your needs. 

Cloud storage cost structures may vary, there could be a monthly-fee or a free service with paid add-ons. Most cloud storage providers offer “freemium” plans with limited storage free of charge, and when you want more space, then you need to upgrade to a monthly subscription plan.

While you can get a free cloud storage solution, it’s not the case with data room pricing. Most virtual data rooms are more expensive, as they offer top-grade and advanced security measures, 24/7 customer support, and new features of security, access, and tracking that are regularly introduced and improved.

For what purposes are cloud storage best-suited for?

Cloud storage are mainly used by businesses for storing important documents. They provide a great alternative for off-site data storage. Most Cloud storage solutions take responsibility for hosting, managing, and maintaining the servers and infrastructure. This ensures that you have access to your data when you need it.Cloud storage suits small businesses as well as large enterprises. 

When is it more advantageous to use a virtual data room service provider instead of cloud storage?

A virtual data room services provider like DocullyVDR is a perfect option for you when you’re managing simultaneous projects that require handling and secure-file sharing of a large number of business sensitive data and documents. With advanced file management tools, state-of-the-art security features, and top-grade communication functionality, it’s easy to deal with a large number of tasks with a data room M&A.  

Virtual data rooms like Docully VDR from one the best data room services providers are commonly used by businesses for due diligence, mergers and acquisitions, large number of people working on a project together, or other joint ventures that require secure access to shared data. A virtual data room like DocullyVDR is usually used for handling complex processes, such as: mergers and acquisitions, due diligence, fundraising, IPO’s since all these require much collaboration, sharing confidential information with many users, and storing large amounts of sensitive data.

Why do businesses choose virtual data rooms over cloud storage?

Efficiency and bank grade security are one of the most important benefits that a good investor data room like Docully VDR offers your workplace.

Here’s why businesses prefer virtual data rooms over free cloud storage:

• Multiple Collaboration tools. Necessary tools for collaboration and teamwork.
• Access Control. Ability to have multiple users access the files in an online data room
• Interface and Training. The intuitive interface with needed training for the new users without data room experience is a major plus for choosing data room M&A
• Customization. Ability to customize the features and dashboards to you’re your business needs and goals
• Security. Leading virtual data room service providers like DocullyVDR are compliant with many international security standards making them reliable and trustworthy 

Conclusion

Virtual data rooms and cloud storage options are excellent solutions for storing and sharing confidential data. And should be chosen with utmost care only after assessing your specific business needs to decide which solution is best suited for you.