While tools like Dropbox and Google Drive can handle basic requirements for sharing files however, they’re not suitable for due diligence or for managing sensitive data. Virtual data rooms allow companies to share confidential documents with multiple parties online, faster and securely than either traditional meetings or digital tools.
VDRs offer collaboration features in addition to file access. Users can add comments to files, work together with other stakeholders, and depending on the platform, sign documents using secure services such as DocuSign. This makes them an ideal choice for transactions that are highly sensitive than general-access cloud storage, where a single breach could expose countless users to privacy issues and potentially cripple business operations.
VDRs tend to be more expensive than cloud storage that has general access due to their top-of-the-line security features as well as the constant advancement of technology. They tend to adhere strictly to standards of compliance, making them a great choice for transactions with sensitive information that require strict document control.
Some companies may be tempted by the convenience of consumer cloud storage instead of a VDR. However, this could be a costly error. A data breach could result in a significant sum in legal fees, fines and lost revenue, not to be forgotten the loss of trust among customers. In addition, a dedicated VDR has more security features than standard cloud storage options like fence view and built-in redaction which can ensure that even when the platform is compromised sensitive data remains safe.