Virtual Data Rooms vs Cloud Storage Systems

Clouds have become an integral part of our lives. But why is widespread cloud storage not suitable for businesses? This article will analyze the pros and cons of using data rooms and cloud storage for business needs. 

Cloud solutions for efficient business management

The time has come for digitalization and virtualization. It means that there is a transition from equipment to functions. Companies work with confidential documents, which are increasingly in the form of data. What used to be kept in a specially secured room with limited access is now a form of cloud solution. Data has been outsourced and yet can be accessed at any time and from anywhere.

Cloud computing opens up huge opportunities, especially for large businesses. As a business grows, so does its need for computing power. And this need, in most cases, cannot be met without cloud technologies.

Cloud storage: pros and cons

Cloud services provide the simplest and fast work with the database. The user can store files in the cloud service, transfer them to other people, perform calculations and perform other actions. By creating an account in the cloud, a person gets access to all information from any device, including mobile. Cloud services such as Dropbox, Mega, or GoogleDrive are gaining increasing popularity among startups and small businesses. They are easy to use, mobile, and save the company money.

Cloud storages are suitable for:

  • startups;
  • companies with a staff of remote employees;
  • organizations with a large branch network;
  • firms focused on the provision of services on the Internet;
  • small businesses want to save money creating and maintaining their own IT structure.

However, clouds are not suitable for all businesses. Companies with high requirements for the storage of personal data are forced to create an internal IT structure. For example, a bank that owns personal information about its customers must take care of their safety on its own. Otherwise, the credit institution risks violating the law on bank secrecy. In addition, cloud platforms are unsuitable for government agencies and large enterprises with large production and computing capacities.

Virtual data room: why is it a more reliable solution?

Data rooms are safe and secure data storage and management sites that allow businesses to store and retrieve important documents or files. A few years ago, data rooms were primarily used in mergers and acquisitions, and today they are an integral part of almost every industry. Such cloud-based software solutions allow users to access and manage documents in a secure environment. In addition, multiple users can work on shared documents in data rooms.

Data room systems, at first glance, perform the same functions as cloud storage. However, the essential difference between such solutions is that data rooms allow you to work with structured and unstructured content and have more flexible functionality. In addition, virtual data rooms meet a certain level of security so that trade secrets can be protected and data protection requirements can be met.

In addition, data rooms are adaptive and can quickly change along with changes in the organization’s business processes. Thanks to a data room, you can put things in order in an organization’s business processes and make their implementation clear, formal, and fast.

Although data rooms were originally intended as remote storage options for information, AI and other technological advances have turned them into a huge business opportunity. As a result, they are used by modern companies as workplaces and virtual business premises.