Businesses deal with important documents daily. Physical data rooms were used to handle them securely, but they may be replaced soon with a new solution. Over the past ten years, we observed the rise of technology in the business sector. Physical data rooms are slowly being substituted by cloud storage solutions, as sharing documents this way is much more convenient and does not require a physical location.
But should we use generic cloud storage for our business needs, or only for personal use?
Why generic cloud storage is better for personal use
There are a couple of reasons:
- Risk of a data breach. Without special security protocols, your data can be leaked. This is unacceptable when it comes to dealing with business-related documents, as a breach could result in damage done not only to you but also to your business partners.
- No control over documents. No “real” control over the documents — we cannot check when someone accessed the data, and even the information about the number of downloads is hard to come by. Screen capture is also possible, as there are no tools in generic cloud storage to shield the documents from that.
- Lack of compliance with security protocols and standards. Generic cloud storage was not designed to secure important business documents. It is a place designed for personal use, a file repository for the individual, and not for a corporation. It stores data, and that is what it is designed to do, without a special emphasis on security.
- No 24/7 support. The host of the cloud storage is not available to you all the time. Those virtual drives can hold your files, but you might have to wait hours for help if there is an emergency.
Why are virtual data rooms better for corporate use?
Cloud storage might be the go-to solution for personal use. Here are our reasons why you should use virtual data rooms for corporate needs:
- High-level data protection. Various encryption settings, security protocols are put in use to ensure the safety of business documents. As opposed to generic cloud storage, virtual data rooms have been designed to safeguard corporate data.
- Total control over documents. When we are using a virtual data room, we can see who accessed what documents, when the last download took place, and what changes were made to the data held in the dataroom. This kind of control, combined with the aforementioned safety protocols, ensures the security of data.
- Compliance with HIPAA, SOC 1 / 2, GDPR. When it comes to the matter of privacy, the virtual data room is compliant with industry standards. Those certifications are tangible proof that the virtual data room is a safe place to store sensitive data.
- 24/7 support, often with a dedicated project manager. In case of any problems or any issues that might occur, the 24/7 support can answer any questions or solve any tech issues you might have. A dedicated team of virtual data room software specialists is at your disposal at any time of the day. Often, there will also be a special person dedicated to your project.
The development of technology has enabled us to store our data in the cloud. Generic cloud storage solutions can be used for your personal needs, but when it comes to data repositories for your business, virtual data rooms are the safer choice. They have been created with security in mind, and their 24/7 support trumps any generic cloud storage solution.