While Dropbox and Google Drive are great for basic file sharing, they’re not the best for storing sensitive data or due diligence. Virtual data rooms enable businesses to share confidential documents with multiple parties online, more quickly and securely than traditional meetings or physical tools.
In addition to file access, VDRs also offer collaboration features. Users can comment on documents and collaborate with other stakeholders, and on some platforms you can sign documents with secure services such as DocuSign. This makes them a better choice for sensitive transactions than cloud storage with general access, where one single breach could expose many users to privacy issues and could even cripple business operations.
VDRs are typically more expensive than cloud storage that has general access, due to their high-quality security features and continuous advancement of technology. They are generally held to standards of compliance, making them an ideal choice for transactions with sensitive information that require strict document control.
While some companies may be tempted to utilize consumer cloud storage in lieu of a dedicated VDR, that could prove to be a costly error. A data breach could cost a lot of money in fines, fees and revenue loss as well as the confidence of customers. A dedicated VDR offers more security features than cloud storage options such as fence why not look here view, built-in redaction, and other security features. This can help ensure that sensitive data is protected even in the event that the platform has been compromised.