A secure data room is an online collaboration software platform that helps streamline due diligence, shortening timelines in M&A and other deals while also providing a solid security. It lets both selling and buy-side teams to manage transactions’ lifecycle from start to finish in a secure way.
What is it that separates a secure dataroom from file-sharing sites such as Dropbox is the fact that it’s targeted towards the business market and allows users to be divided into groups and permissions to be assigned at granular levels. Analytics can also provide insight into the use of your data (e.g. when, how and from where the data is accessible. A lot of them offer advanced features, for example, the ability of preventing copying and downloads (a big no-no) or showing documents in a manner that can’t be screenshotted. Many use industry-leading encryption to encrypt sensitive information and multi-factor authentication to ensure that the person attempting to login is the one who is requesting access.
Most secure data rooms also allow document download for offline viewing in PDF format. If you allow users to print to physical printers, or save the documents to file drivers for use for other reasons, they’ll lose the protection provided to the original information stored in the virtual data rooms.
If you are able to download these files from a room or another system, and then view them without being connected to the Internet it is not what you want from data rooms to store sensitive documents for M&A due-diligence and litigation compliance, and other sensitive documentation. These documents must be stored on devices, not transferred to servers. This is why we recommend using a DRM solution that encrypts files to devices instead of to servers which makes it impossible for you to extract them from devices or share them.
www.getdataroom.com/reasons-for-of-usage-data-room-software/
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