A secure dataroom is an online collaboration platform that helps streamline https://getdataroom.com/what-is-a-secure-data-room/ due diligence, cuts down on timeframes for M&A and deal making while providing a guarantee of safety. It allows sell-side and buy-side teams to manage the entire process from start to finish with confidence.
What is different about a secure digital room against file sharing websites like Dropbox is that it’s generally more geared towards the enterprise with the ability to group users, assign granular permissions and gain insight into usage through analytics (e.g. when, how and from where the data is accessed. Some have advanced features, for example, the ability to stop downloading and copying (a big no-no) or displaying documents in a way that can’t be screenshotted. Many of them use industry-leading encryption to encrypt sensitive data and multi-factor authentication in order to ensure that the user trying to log in is actually the one requesting access.
The most secure data rooms permit document download for offline viewing in PDF form. If you permit users to print to physical printers, or save the documents to file drivers to use for other purposes, they will be unable to access the protection that was applied to the original data stored in the virtual data rooms.
If you can download the files from a data room or other system and then view them without access to the Internet that is not what you want from the data room to store sensitive documents for M&A due diligence, litigation, compliance and other documents that are sensitive. The documents should be kept on devices, and not sent to servers. This is the reason we recommend using a DRM solution that locks files to devices rather than to servers which makes it impossible to extract them from devices or share them.