What Is a Virtual Data Room?

A virtual data room is “an online repository of information that is used for
the storing and distribution of documents.” These documents can be
organized, shared and tracked all within the data room administrators’
control and discretion. Virtual data rooms are ideal for supporting complex
projects and business processes that require the disclosure and sharing of
confidential documents with third parties beyond the firewall.

In the early 2000s, virtual data rooms emerged as document storage and
sharing transitioned online and from physical to electronic files. VDRs were
a less costly and time-consuming method of housing and disclosing co

Why Would You Want a VDR?

The greatest advantage of a VDR is the peace of mind that comes from
knowing that your confidential information—financial and HR information,
intellectual property, your clients’ legal documents—will not be seen by third
parties unless you’ve granted them permission to do so. nfidential company
documents in a controlled manner.

VDRs vs. Generic File Sharing Services

Generic file sharing services such as corporate email, Dropbox or Google
Drive might seem like comparable options, however, they are not sufficient
for protecting an organization’s most sensitive information.

What Does A VDR Have To Offer?

These are the core capabilities a VDR provides;

Security
Virtual data rooms offer a level of security similar to that of financial
institutions and major banks.

Control
The specialized features of a virtual data room are designed to reduce
human error by ensuring that the correct people can view the pertinent
documents at the correct time. Security measures can be configured
including:

 Disable/Enable print or download

 Dynamic Watermarks
 Expiration of Documents
 Customizable permission settings
 Activity Reports

Ease of Use
If a business process or transaction requires sharing and reviewing
thousands of documents, how well those files are organized and how easy
they are to access is critical.