While applications like Dropbox and Google Drive can handle basic requirements for sharing files, they aren’t ideal for due diligence, or for managing sensitive data. Virtual data rooms allow businesses to quickly and securely share confidential documents online with multiple parties, more quickly than traditional meetings or digital devices.

VDRs come with collaboration features in addition to access to files. Users can comment on documents and collaborate with other stakeholders and on some platforms you can sign www.vdrcity.com/how-to-ensure-the-security-of-your-virtual-data-room/ documents with secure services such as DocuSign. They are, therefore, a better choice for transactions that are sensitive compared to general-access cloud storage, where an incident could expose numerous users and cripple the business.

VDRs are typically more expensive than general-access cloud storage as they offer top-quality security measures and constantly evolving technologies. They are generally held to the strictest standards for compliance, making them a great choice for sensitive transactions that require strict control of documents.

While some businesses might be tempted to utilize cloud storage services for consumers instead of a dedicated VDR, that could prove to be a costly mistake. A data breach can cost a lot of money in fees, fines and revenue loss and also the confidence of customers. Additionally, a dedicated VDR has more security features than basic cloud storage options like fence view and built-in redaction, which help ensure that even in the event that the platform is compromised sensitive data remains safe.