A virtual data room (VDR), also known as a deal room, is a secure online repository for document storage and distribution. It is typically used during the due diligence process preceding a merger or acquisition to review, share, and disclose company documentation.
Virtual data rooms have increasingly replaced physical data rooms traditionally used to disclose and share documents. With the globalization of business, increased scrutiny to reduce costs, and the restrictions of the pandemic, virtual data rooms are an attractive alternative to physical data rooms. Virtual data rooms are widely accessible, immediately available, and more secure.
- Virtual Data Rooms, or VDRs, exist as a secure way to store documents that multiple people need access to simultaneously.
- VDRs are commonly used by businesses when they are merging, working on a project, or other joint venture that requires access to shared data.
- VDRs are considered more secure than physical documents as there is no risk of loss during transit or being destroyed accidentally.
Microsoft SharePoint as a VDR
Businesses use the SharePoint environment as a virtual data room to make available documents to external users and outside organizations (such as partners, vendors, clients, or customers). A document library can be created with the necessary folders for each outside organization. Access to each folder can be limited to only those who need it.
External sharing in SharePoint and Office 365 is the driving force behind this SharePoint VDR solution. The invited users only needed a Microsoft account of some kind whether that be another Office 365 account, Outlook, etc.
SharePoint can be set up quickly with minimal training for users.
Need help setting up a Virtual Data Room? Contact ACE IT Solutions at firstname.lastname@example.org or 646.558.6358 or download this PDF for details on using SharePoint as a VDR.