While applications like Dropbox and Google Drive can handle basic file sharing needs however, they’re not suitable for due diligence, or for managing sensitive data. Virtual data rooms permit businesses to quickly and securely share confidential documents online with a variety of participants, much faster than physical meetings or traditional digital devices.
VDRs provide collaboration capabilities in addition to access to files. Users can comment on files, work together with other stakeholders, and, for some platforms, even sign documents through secure services such as DocuSign. This makes them an ideal option for transactions that are sensitive than general-access cloud storage, where one breach could expose many users to privacy issues and possibly cripple business operations.
VDRs are generally more expensive than cloud storage that has general access, due to their high-quality security features and continuous advancement of technology. They also tend to adhere to strict compliance standards, making them an excellent choice for dealing with sensitive transactions that require rigorous document control.
While some companies may be tempted to utilize cloud storage services for consumers instead of a dedicated VDR but this could turn out to be a costly error. A data breach could cost substantial amounts in fines, legal fees and revenue loss, not to be forgotten the loss of trust with customers. In addition, a dedicated VDR has more security options than cloud storage that is standard including fence view and built-in redaction, which can help ensure that even there is a breach of the platform sensitive data is safe.