What Is a Cloud Data Room?

Cloud data rooms are cloud solutions that are specifically designed to store and share confidential business data in a secure setting. They are used to support due-diligence in M&A deals, IPOs, and legal proceedings but can be utilized in any circumstance that requires the safe and efficient handling of sensitive documentation.

Virtual data rooms are extremely flexible, and can be accessed with an internet connection. Data stored in the cloud data storage cloud unlike traditional desktops, laptops and servers, are protected by multiple layers of security. That includes firewalls as well as encrypted transmissions and multiple backups to safeguard against accidental or malicious loss of data.

A virtual data room has a variety of functions to aid the processes dealmakers manage. These include a question and answer area, advanced permission controls and bookmarks and notes. They also provide precise tracking of activities. A lot of providers provide a higher level of customer service than traditional cloud storage options, such as multilingual support via phone, email and in-app.

To find a reputable cloud data room provider, it’s worth checking whether they have SOC 2 certification and ISO 27001 accreditation. This is an independent test that tests the capability of a company to safeguard against the encroachment of your sensitive information and proves their conformity with internationally accepted best practices.