While tools like Dropbox and Google Drive can handle basic file sharing requirements however they’re not the best choice for due diligence or for the management of sensitive information. Virtual data rooms enable businesses to share confidential documents with many parties online, much faster and securely than either traditional meetings or physical tools.
VDRs include collaboration features in addition to file access. Users can comment on documents, collaborate with other stakeholders, and for some platforms, even sign documents using secure services such security of virtual data room as DocuSign. This makes them a better option for transactions that are sensitive as opposed to general-access cloud storage where one single breach could expose many users to privacy issues and even disrupt the business operations.
VDRs tend to be more expensive than general-access cloud storage, due to their top-quality security features and developing technologies. They generally adhere to compliance standards, making them a great choice for transactions that require strict document control.
While some companies may be tempted to use consumer cloud storage in lieu of a dedicated VDR and this could turn out to be a costly mistake. A data breach could result in a significant amount of fees, fines and revenue loss as well as the trust of the customers. Additionally, a dedicated VDR has more security options than basic cloud storage options like fence view and built-in redaction, which can ensure that even in the event that the platform is compromised sensitive data remains safe.