A virtual data room is a cloud-based technology that allows you to comfortably conduct due diligence, large transactions in a company, or even just work every day. In this article, you will learn about the benefits of VDR for conducting due diligence.
Public clouds for due diligence
Now the most common, affordable, and cheap is the public cloud. As a result, most clients of cloud providers work with it.
It should be clear right away that storing data in a public cloud does not mean that it is publicly available. Publicity is different: the information is located on a physical server along with the data of other companies. At the same time, it is isolated and protected (no one else has access to it, including the cloud operator itself). It is impossible to say exactly what hardware the virtual machine will be deployed. It may well be transferred to another server to balance the load on the provider’s IT infrastructure as a whole.
The public cloud can be used to interact with customers when using applications by many people. It is very convenient to place client applications in it, as well as to test them.
Pros and cons of the public clouds
Among the advantages of a public cloud, the following can be distinguished in the first place:
- Elastic structure. The ability to increase computing power at times of peak loads (and reduce if necessary).
- Ease of use. A virtual machine in a public cloud can be easily deployed and collapsed. The main condition is the presence of a stable Internet connection.
- Possibility of quick release of the product.
- Relatively low cost.
- Reduced capital costs: no need to buy servers and pay for racks in the data center.
- Optimize the work of the internal IT department, whose employees can focus on more important tasks.
The main disadvantage of a public cloud is the level of data protection. It will not suit a company if it is obliged to store important private information while fulfilling special security requirements. Other disadvantages include:
- Depends on the cloud provider and the quality of the Internet connection.
- Possible data loss in case of an accident. Data backup can help to mitigate damage, but it also comes at a cost.
The provider uses low-quality equipment (cheap disks, etc.). Of course, this does not apply to all cloud operators, but in principle it is possible, since the public cloud hides a significant part of the internal infrastructure.
Despite all the disadvantages, the public cloud can be a lifesaver for customers with legacy hardware. However, its replacement is a major expense for any organization. When many companies are focused on reducing costs, it becomes more profitable to move to the cloud. This is especially true if the firm has several offices where employees share data. Thus, system administrators get rid of routine problems with server hardware and can devote more time to service maintenance and user support.