The Basics of Virtual Data Rooms

As we live in a more and more digital world, virtual data rooms have become an essential tool for businesses to store and share sensitive information. These online spaces allow individuals and companies to work on projects, show off their portfolios, collect data, and collaborate remotely. They’re so important that many businesses host their own virtual data rooms. But the decision to use a virtual data room is not always easy or straightforward. With that in mind, here are the basics of what a virtual data room is, how they work, and why they’re so useful.

What is a virtual data room?

Before we get into the practical benefits of virtual data rooms, let’s talk about what a virtual data room is not. This information could help you make an informed decision when deciding whether you need one, so let’s break it down.

A virtual data room is not a conference room. A virtual data room is not an actual office. And, most importantly, a virtual data room is not a storage closet.

A data room does not create a physical location for you to work in. You don’t have to build a physical replica of your actual office, and you don’t have to install a smoke alarm or a fire sprinkler system inside. You can take your virtual office with you when you need to work remotely and, most importantly, it can be easily accessed from any device.

How does a data room work?

On a very basic level, a data room is an online space where businesses and individuals can store, send, and receive confidential information about their business.

There are countless examples of the kinds of information you can put into a virtual data room. For example, an architect can put together virtual models and share them with a client. Lawyers can share information on whether or not a lawsuit is worth bringing to court. Publishers can share press releases and marketing pieces for a new book with authors. These are just some of the examples of the types of people who can take advantage of the confidential nature of a data room.

The benefits of a virtual data room

Virtual data rooms are just as much about protecting information as they are about sharing it. In a virtual data room, you can keep your data confidential and under wraps — just in case your competitors discover you’re doing things differently from everyone else. Plus, if your business undergoes an attack or is hit with a ransomware attack, your organization can keep your data safe online while you recover.

Because they’re hosted in an online space, they’re more secure than paper-based documents. Virtual data rooms are also an excellent way to share or store critical information about your business — such as customer information, passwords, contracts, supplier data, and product information — safely and securely.


No matter how much value you place on your digital products and services, your ability to manage data, assets, and workflows must also keep up with the fast pace of change. Virtual data rooms are among the best tools for your data, information, and collaboration needs. They’re online workspaces that let your team get on with their projects and deliver them in a secure, streamlined manner, and without interrupting their daily workflow. If you are looking into switching to virtual data rooms to support your company’s needs, the steps involved will be easier than you expect.