While tools like Dropbox and Google Drive can handle basic requirements for sharing files however they’re not the best choice for due diligence, or for storing sensitive information. Virtual data rooms allow businesses to share securely and swiftly confidential documents online with multiple parties, more quickly than traditional meetings or digital devices.
VDRs offer collaboration features in addition to file access. Users can add comments to documents, collaborate with other stakeholders, and for some platforms, even sign documents through secure services like DocuSign. This makes them an ideal option for transactions that are more sensitive than cloud storage with general access, where a single breach could expose a multitude of users to privacy issues and possibly cripple business operations.
VDRs typically cost more than general-access cloud storage since they have high-quality security and evolving technologies. They also adhere to strict compliance standards, making them a good option for handling sensitive transactions that require rigorous document control.
While some businesses might be tempted to use consumer cloud storage in lieu of a dedicated VDR and this could turn out to be a costly error. A data breach could cost an enormous amount in legal fees, fines and revenue loss, not to not mention the loss of trust with customers. A dedicated VDR provides more security features than cloud storage options such as fence view, built-in redaction and other security features. This will ensure that sensitive data is protected even in the event that the platform has been compromised.