Virtual data rooms can be defined as online repositories that allow managers to store and share crucial company information. Virtual data rooms can be thought of as digital versions of previously maintained physical data rooms featuring rows upon rows of files and cabinets. These cabinets contained all company documentation starting right from the firm’s registration to their current client and employee data files. Virtual data rooms simply eliminate the need for this physical space by maintaining all company data virtually.
However, despite the popularity of virtual data rooms, the one question that often presents itself in related discussions is how virtual data rooms are any different from cloud storage platforms. Both cloud storage platforms and virtual data rooms allow sharing and storing data, so why is one of these raved about and expensive, and the other is popular yet inexpensive? To answer the above question, given below are three reasons why virtual data rooms are better than cloud storage platforms in all aspects:
1. Virtual Data Rooms Are More Scalable
Cloud platforms not only have limited storage capacity for their basic payment plans. Even if this capacity can be increased with additional payments, cloud storage platforms tend to crash when met with an excess of data or heavy files.
However, virtual data rooms such as https://www.firmex.com/ can manage large volumes of data infinitely without even a hiccup because they are backed by powerful processors and storage capacity. Data rooms are built to hold and store-wide volumes of information, and hence are more scalable than cloud-based platforms.
2. Virtual Data Rooms Are More Secure
Now and then we hear how one or the other cloud platform and hosting service has been a victim of data fraud, and how the companies availing services of these platforms have had their security compromised. Not only does the make of cloud-based platforms make them more susceptible to attacks, but the advent of multiple parties using the same cloud also creates a threat.
Virtual data rooms, however, offer separate virtual storage space for each company, with no firm sharing a space with another at any given period. In addition to that, virtual data rooms offer impeccable security measures and sophisticated setups in place to ensure that no external threat can reach or harm their client’s data. Virtual data rooms are additionally more reliable than cloud-based platforms due to their limited instances of breaking down.
3. Virtual Data Rooms Are More Accessible
Virtual data rooms are far more accessible and shareable with individuals as compared to cloud-based platforms. Most cloud-based platforms require their users to either sign up or register using a special domain or require them to download multiple programs before getting access to the cloud platform. However, virtual data rooms have no such implications in their operations.
Virtual data rooms allow individuals to gain access simply with a touch of permission from the owner of the room. The owner can simply choose to give access to certain individuals using their email addresses and by setting up an authentication process for them.