While Dropbox and Google Drive are great for basic file sharing, they’re not the best for handling sensitive data or due diligence. Virtual data rooms allow businesses to securely and efficiently share confidential documents online with multiple participants, much faster than traditional meetings or digital devices.
In addition to access to files, VDRs also offer collaboration features. Users can comment on files, work together with other stakeholders, and, for some platforms, even sign documents using secure services such as DocuSign. They are, therefore, a better choice for transactions that are sensitive as opposed to general-access cloud storage where one breach could expose many users and disrupt business operations.
VDRs are typically more expensive than cloud storage with general access due to their top-of-the-line security features and continuous advancement of technology. They also adhere https://vdrcity.com/why-use-a-virtual-data-room/ to strict compliance standards, making them an ideal option for handling sensitive transactions that require strict document control.
While some companies may be tempted to utilize cloud storage for their customers instead of a dedicated VDR, that could prove to be a costly error. A data breach could cost an enormous amount in legal fees, fines and lost revenue, not to forget the loss of trust among customers. Additionally, a dedicated VDR provides more security features than standard cloud storage options including fence view and built-in redaction which help ensure that even if the platform is compromised, sensitive data remains secure.