What is a Virtual Data Room
Data Rooms were started to ensure that sensitive documents aren’t shared. Hence the term Data “Room”, as they would be physical rooms (typically in a law office) where documents pertinent to a M&A deal would be kept. People involved in the deal could review the documents in the room but they couldn’t be removed from the room.
Today these Data “Rooms” are now virtual, hence the term Virtual Data Room. Although they are modernized they serve the same purpose, to secure sensitive documents. Products like Orangedox provide features to ensure that documents can be digitally delivered to room participants but can’t be shared with others.
Is there any Risk in using Virtual Data Rooms?
Yes, but it’s more riskier to NOT use a virtual data room.
Using any online service is risky, services do get hacked and there’s even more risk of you not using the product correctly and inadvertently sharing sensitive information.
However, not using a virtual data room to share sensitive information is even riskier. For example using a shared Google Drive folder instead of data room can get you into a whole bunch of trouble since Drive was never made for secure document sharing.
Best to use a data room product like Orangedox that plugs into your Google Drive and take advantage of secure document sharing, real time access controls and full document tracking
What are you Paying for with Virtual Data Rooms ?
Security & Convenience
Virtual Data Rooms, just like their old school physical counterparts, provide a way to secure your documents during deals, so you’re paying to ensure that your sensitive documents aren’t shared without your permission. With virtual data rooms you’re also paying to have your participants easily access these files online and to be able to track what they’re viewing.
What Checklist do I Need to go Over before Choosing a Virtual Data Room?
✓ Provides adequate document level security to prevent sharing
✓ Provides real time security access controls
✓ Integrates with your existing tools (eg Google Drive etc..)
✓ Has a low cost (or no cost) per data room participant
✓ Easy to use
✓ Doesn’t require passwords (which can be easily shared)
✓ Won’t break the bank!
Check out Orangedox we check all of these boxes
What are some of the most Popular Virtual Data Room Providers?
The largest Virtual Data Rooms in terms of customer/user base would be cloud storage solutions:
- Google Drive
- Dropbox
- Box
- One Drive
Virtual Data Room providers have been loosing market share to cloud storage providers like Google Drive, Dropbox and Box for years. VDR’s have traditionally been expensive and cumbersome to use, while cloud storage providers have been cheap (and in most cases free) and easy to use. It’s also hard to complete with free. Plus tools like Orangedox | Data Rooms & Compliance Tools that plug-in to cloud storage providers and cover the last mile of functionality (tracking & password security) make it a no brainier choice.
Seal the deal confidently with Orangedox's Virtual Data Rooms. Elevate your document security, enjoy real-time access controls, and track every move effortlessly. Bid farewell to traditional risks and embrace a future where secure data sharing meets simplicity. Choose Orangedox - where security meets seamless functionality.
Start your 14-day free trial of Orangedox Virtual Data Rooms and see what Orangedox can do for your business.
Orangedox provides one-click create virtual data rooms that are directly synced with your Google Drive folders.
