A virtual data room (VDR) is a secure online environment that allows collaboration in the review of confidential documents. During M&A deals, for example companies can easily share their files with potential buyers without the fear of them getting leaked or stolen.
VDR features include granular permissions to manage access to each document on a per-file basis, critical information about changes made to files as well as two-factor authentication, intricate passwords, and custom NDAs that can be customized. They are also designed to stop data leaks and other security breaches. A VDR can also be integrated with other productivity tools like communication platforms, project management and software for editing documents.
If a business decides to expand or enter into strategic alliances, it must frequently transfer large amounts of data. Virtual data rooms are a great method to share information with partners around the world. They can be utilized by both parties to collaborate and speed up the decision-making process.
One of the best ways to explain how the virtual data room is different from other storage solutions is to think of a physical space full of filing cabinets. The person who manages the room determines which cabinets are visible to every person and what’s inside. Virtual data rooms are similar to physical data rooms however, they can be managed more easily and efficiently from any device. For example administrators can turn on a website link function called fence view which blocks sensitive information in documents to keep the information private.