A secure dataroom is an online collaboration platform that speeds up due diligence, cuts https://getdataroom.com/reasons-for-of-usage-data-room-software/ down on timeframes for M&A and deal making while providing complete security. It enables buy-side and sell-side teams to oversee the complete cycle of transactions from start to finish with confidence.

What is it that separates a secure dataroom from file-sharing sites like Dropbox is the fact that it’s designed for the business and allows users to be grouped and permissions to be granted at granular levels. Analytics can also provide insights into the use of the dataroom (e.g. when, how and from where data is accessed. Some have advanced features, like the ability to prevent copying and downloads (a big no-no) or showing documents in a manner that cannot be screenshotted. Many utilize industry-leading encryption to encrypt sensitive data and multi-factor authentication to ensure that the person attempting to login is the one who is requesting access.

The most secure data rooms allow download of documents for offline viewing in PDF form. If you allow users to print to physical printers or save the documents to file drivers to use for other reasons, they will lose the protection provided to the original information in the virtual data rooms.

If you can download the files from a data room or other system and then open them without access to the Internet it defeats the purpose of using data rooms to store sensitive documents for M&A due-diligence, litigation, compliance, and other sensitive documentation. The documents must be stored on devices and not sent to servers. We recommend a DRM-based system which locks files onto devices, not servers. This means that it is impossible to remove them from devices or share them.