Virtual Data Room- An Overview

Charlotte Miller

Updated on:

COVID-19 is attributed to influencing our life socially, mentally, economically, and whatnot. It is the pandemic that perpetuated remote work; as a result, more than 48% of people work remotely today,  which was 30% before the pandemic.

With the growing adoption of remote work, most people are sharing sensitive information and documents online. Digital sharing is good as long as it is not susceptible to cybercrimes. Since not all documents are the same, standard security measures are not enough to protect them from theft or other security problems.

This brings us to the idea of a virtual data room that is gaining much importance in business realms to secure the confidential and crucial documents they send over the internet.

What is Virtual Data Room?

Virtual Data Room (VDR) also known as Deal Room is an encrypted online repository where you can save and share sensitive information. Businesses use virtual data rooms when they work on a project, mainly in liaison with other partners, where they need to access shared information.

VDR is considered safer and more convenient than physical data rooms as the data never gets lost and can be accessed anytime and anywhere. Consequently, it is gradually replacing the traditional data rooms.

Virtualization allows you to run multiple virtual programs on a single server, saving you the cost of highly-priced hardware.

How to Choose a Virtual Data Room Provider?

Over 422 million data breaches were recorded in 2022, the highest in any year. This is an alarming situation that amplifies the importance of virtual data rooms. It is important to understand that data is important to both businesses and hackers. And when it is sensitive data, you have to put in extra effort to ensure its security.

You may choose any of the wide range of virtualization software that meets your business’s specific needs and goals. However, you must not compromise your data for the sake of saving a few bucks-because at the end, you will have to bear more expenses that will be caused by lost data.

For your business, it is important to invest in a reliable internet connection as well, through which you send the internet. Quantum Fiber Internet, for example, is well-suited for businesses of all scales. It offers uninterrupted fast speed enabling you to browse on multiple devices at optimal speed.  

Why Virtual Data Rooms are Secure?

Here is the list of features that make virtual data rooms secure.

  1. Strongly Encrypted

Most importantly, with VDRs, the data is strongly encrypted that beefs up the security of the documents. Encryption is the process of encoding the data before it is shared on a storage cloud.

  1. Document Permission and Restriction Setting

Different VDRs offer different document permission and restriction settings that are important to secure important documents, for example, some enable you to send a document to another person while limiting him to view only a certain portion. This helps prevent oversharing of critical information with irrelevant parties. Moreover, it also offers a “view only” option, which restricts others from copying the text.

  1. Digital Watermarking

Digital watermarking is the use of embedded markers on documents to identify who owns the data, be it in any form, such as document, video, audio, etc.  It helps you track who is downloading or printing the data, which can help you stop your document from getting copied.

  1. Two-factor Authentication

The two-factor authentication is by far the most useful technique to secure any data. To access a virtual data room, you do not only need a password but a code that is generated new every time you try to log in and is sent to an authorized device. In this way, only authorized people can access VDR.

  1. Analytics

Analytics, also known as Audit logs, give you insights into the users, activity, and documents within a room. This is crucial from the security point of view and is also useful for project management when multiple people are working on the same project.

  1. Single Sign-on integrations

Single Sign-on (SSO) technology combines all application login screens into one. Thus the users can input their username and password can access all of the SaaS products.

What are the Benefits of the Virtual Data Room?

  1. Robust Security

VDR guarantees that the documents your share over the internet are safe and are protected from getting maligned. The data is encrypted; it has rigid permission control and offers two-factor authentication, and analytics to ensure your data is saved from cybercriminals.

  1. Seamless Management

VDR ensures that your data is only accessed by those who should, and it also helps you determine how much should they know. All this, in totality, aligns with your project management needs, helping you better manage and execute the operations.

  1. More Feasibility

Compared to traditional data rooms, virtual data rooms are far easier to access. This means that you can access the required data anytime and anywhere.


For external data sharing, you need a secure digital platform with strict permission settings. Virtual data room is, thus, the most secure online repository for sensitive document storage and distribution. It provides data encryption so that no unauthorized person gets access to it.