Big Data

Virtual Data Room vs. Cloud Storage

Virtual Data Room vs. Cloud Storage

Revolutionary advancements in technology have opened up so many options for businesses to share and store their documents. There are hundreds of options, two of the most popular platforms are virtual data rooms, and the other is cloud storage.

With so many free solutions available, people all around the globe prefer virtual data rooms. Let’s find out why businesses are increasingly relying on VDR software when they can use free solutions.

What is cloud storage?

Cloud storage is the technology behind free file-sharing platforms and most virtual data rooms. Cloud storage or computing is a free solution that businesses can use to store and share data via internet-based applications and tools.

One thing to keep in mind is that cloud storage isn’t virtual entirely. Also, every data-sharing platform has servers that store both users and software data.

Also read: Top 5 Reasons Why Marketing Cloud Is Important For Marketers

What is a virtual data room?

It’s an online data room software that allows users to share and store confidential data. Virtual data rooms act as an online repository for business documentation.

What’s more, VDR software complies with the international data security standards, making them more reliable and secured platforms for data-sharing.

Virtual data room vs cloud storage: Differences

Let’s compare virtual data room and cloud storage. Here’s what you need about both solutions to make the right decision for your business:


Without a doubt, data room software is more efficient as compared to the traditional cloud storage platform, particularly when it comes to closing a deal. What’s impressive is that businesses can reach multiple bidders simultaneously. Virtual data rooms aren’t just cost-efficient but fast.

With cloud storage setup, bidders need to schedule an appointment before holding the meeting. However, with a virtual data room, bidders can access the data at any time once the access is given. This, in turn, saves a lot of time and resources, while enhancing the bid value by almost 20-30%.

All in all, with VDR software, there is a high possibility of converting the bidder into an actual buyer.

Effective communication

The biggest plus of using VDR software is that it keeps communication between the parties confidential and secure, as it is fully encrypted. The traditional cloud storage platform lacks this privilege though.

If there is something that you don’t wish to disclose to every bidder, virtual data rooms allow you to communicate privately without having to worry about information leaks.

Moreover, VDR software is a complete suite of essential tools comprising annotation and Q&A tools — keeping communication channels unifying for all.

Security and simplicity

Traditional cloud storage platforms are more complicated than virtual data rooms. That’s because conventional storage options are more tedious and time-consuming. Most of the time, transactions in traditional data rooms are conducted at the lawyer’s office to ensure security. Yes, it adds more security but it comes with high maintenance costs and is time-consuming.

In contrast, virtual data rooms are simpler and more secure. They give you control over who can access the data and who can’t. Also, you can restrict downloading, printing, and copying of documents.


Virtual data rooms have made monitoring easier than ever. The digital system is fast and easy to use. You can set up your data room and share thousands of files with other members within a few hours.

In traditional cloud storage platforms, monitoring who has or for how long accessed the files is not possible. However, VDR software provides businesses with information on who has accessed the files and when they did access them.

Also read: Cloud Migration: Cloud Migration Definition, Process, Benefits and Trends

Valuable insights

Virtual data rooms feature reporting tools that come very handy when analyzing the company’s interest. Businesses can use the information to strengthen their position and increase the bid value during the bidding process.

Do the traditional file-sharing platforms offer this option? No, VDR software has a competitive edge over conventional data-sharing platforms.

Hence, data room providers offer more value to dealmakers than any data-sharing free solution because of the added functionality and security. Besides, they offer all essential tools for productive teamwork and governance.


Traditional cloud storage platforms are great when you are dealing with non-confidential files. However, any type of confidential data isn’t safe with a free cloud-based solution.

Hence, it’s best to use virtual data rooms to avoid accidental data leaks and be on the safer side. Nonetheless, it is imperative to find the right data room software that fits the needs of your business.

Written by
Delbert David

Delbert David is the editor in chief of The Tech Trend. He accepts all the challenges in the content reading and editing. Delbert is deeply interested in the moral ramifications of new technologies and believes in leveraging content marketing.

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