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Data room vs. cloud storage: Choosing the right platform for secure and efficient due diligence

May 11, 2024

Today, data is not just an asset but a cornerstone of due diligence. Businesses need a platform that not only facilitates easy access, transparency and flexibility but also prioritises security and legal compliance. This article explores what differentiates Drooms from storage solutions, offering unique advantages for businesses handling the due diligence of sensitive and complex transactions.

Understanding cloud storage options

The cloud storage landscape is diverse, with options ranging from public clouds like Google Drive and Amazon S3 to private clouds like Oracle and HPE that offer enhanced security but at a higher cost. Public clouds provide flexibility, and are cost-effective for smaller businesses like startups, while private clouds offer dedicated resources and enhanced security for enterprises and larger projects with specific compliance and data management needs.

The Drooms difference

Drooms goes beyond conventional public and private cloud solutions by offering a virtual data room specifically designed for sensitive business processes such as M&A transactions, real estate deals, and IPOs. Here’s how Drooms compares to standard cloud storage options:

  1. Security and compliance
  • Other Public clouds: Often use shared infrastructure, which may not suffice for businesses focused on security or those needing to meet strict regulatory compliance. Security is increasingly a focus due to rising data protection regulations and growing cybersecurity threats.
  • Private clouds: Provide better control and security but can be cost-prohibitive and less scalable.
  • Drooms: Hosted on private, georedundant servers in Germany and Switzerland, ensuring compliance with stringent EU data protection laws, including GDPR. The platform’s advanced permissions settings allow for precise control over who views or edits files, with detailed usage reports down to the document level.

2. Cost efficiency and scalability

  • Other Public clouds: Appear cost-effective initially but can become expensive with increased usage, especially for medium to large enterprises.
  • Private clouds: Involve significant upfront investment and ongoing maintenance costs.
  • Drooms: Provides a scalable solution that accommodates growing data needs without the excessive costs associated with traditional private clouds. Drooms’ pricing models are transparent and tailored to the unique requirements of each business, ensuring you only pay for what you need.

3. Functionality and user experience

  • Other Public clouds: Offer basic storage and file-sharing capabilities but often lack the advanced features necessary for complex transactions.
  • Private clouds: Can be customised but require a substantial IT effort to manage and adapt.
  • Drooms: Delivers a user-friendly interface with features like AI-powered document handling, intelligent indexing, and real-time collaboration tools. These functionalities are designed to enhance productivity and streamline the deal process.

4. Specialised support and customisation

  • Other Public and private clouds: Generally offer standard customer support, which may not include support for business-specific use cases; customisation is limited unless opting for expensive enterprise packages.
  • Drooms: Provides dedicated 24/7 support with customised solutions tailored to the specific needs of high-stake transactions. Drooms’ experts are well-versed in the nuances of various industries and use cases, ensuring that every client receives support that understands their business context.

Why should you choose Drooms?

For businesses engaged in transactions where security, compliance, and precision are paramount, Drooms offers a superior alternative to traditional cloud storage solutions. Whether it’s conducting due diligence for a merger, securing documents for an IPO, or managing real estate transactions, Drooms provides a secure, compliant, and efficient environment. With Drooms, companies not only safeguard their data but also enhance their operational capabilities, making it an ideal choice for businesses looking to leverage the power of digital solutions without compromising on security or functionality.

Discover the Drooms difference today. Try our virtual data room solution and experience first-hand how we can transform your business storage and document management needs.

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M&A Transactions
Corporate finance / M&A

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