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 enable businesses to share confidential documents with many parties online more quickly and safely than physical meetings or traditional digital tools allow.
VDRs provide collaboration capabilities in addition to file access. Users can comment on documents and collaborate with other stakeholders and, in some platforms they can sign documents using secure services like DocuSign. They are, therefore, a better choice for transactions that are sensitive as opposed to general-access cloud storage, where the risk of a single breach could affect to a multitude of users and impact the business.
VDRs typically cost more than general-access cloud storage due to their high-quality security and developing technologies. They typically adhere to the standards of compliance, which makes them a good option for transactions with sensitive information 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 could cost a lot of money in fees, fines and revenue loss, not to mention the trust of customers. A dedicated VDR has more security options than cloud storage options such as fence view, built-in redaction, and other security features. This can help ensure that sensitive data is secure even if the platform has been compromised.