Virtual data rooms, or VDRs, are online repositories that allow for the sharing of sensitive documents and files during a high-risk project. These include M&A due-diligence, real estate contracts or fundraising. VDRs focus on data security with measures such as strong encryption of data as well as user-specific permissions that can be customized and simple access controls.

This is a significant advantage over traditional file sharing platforms like Google Drive, Dropbox or your intranet, which may expose sensitive information to hackers and put your business at risk. VDRs also have the ability to trace, allowing administrators to determine who has accessed the documents and when (as as long as it’s permitted under the laws protecting data). This can prevent accidental disclosures, and prove the compliance of audits and regulatory checks.

Many businesses have specific business requirements they have to consider when selecting a VDR. The best place to start is to determine the sensitivity of your documents and the volume of documents you’re dealing with. If you’re working with low amounts of non-sensitive documents, you won’t need the advanced security and collaboration features provided by a VDR.

Time and budget are also important aspects to take into consideration. A high-end VDR will reduce the amount of time and effort required for completing a task which will save look at this site you money and valuable resources. Additionally, many VDRs provide flexible pricing plans so that you can select a plan that fits your needs. With a trial period of no cost, you can try out a VDR prior to committing.