A secure data room is an online collaboration platform that facilitates due diligence, cutting down on timeframes in M&A and other deal making while also providing a solid security. It lets both selling and buy-side teams to manage transactions’ duration from beginning to end in a secure way.
What is it that sets a secure data space distinct from file sharing websites like Dropbox is that it’s usually more geared towards the enterprise with the ability to group users, set granular permissions and gain insight into usage via analytics (e.g. the time, date and location your data is accessed). Some have advanced features, including the ability to block copying and downloads (a big no-no) or the ability to display documents in a way that can’t be scanned. Many of them use industry-leading encryption technology that allows for the scrambling of sensitive information and use multi-factor authentication to ensure it’s the person trying to log in that is seeking access to the data.
Most secure data rooms also allow document download for offline viewing in PDF format. However, if you allow users print these files on physical printers or save them to file drivers for different purposes, they are not protected by the same protection that is provided to the original data in the virtual data room.
If you can extract these downloaded files from the data room or other systems and then access them on a computer without connecting to the Internet that defeats www.getdataroom.com/reasons-for-of-usage-data-room-software/ the entire reason to use an encrypted data room for M&A due diligence as well as litigation, compliance, and other sensitive documentation that needs to be secured to devices and not transferring to servers. This is why we recommend using a DRM system that locks files to devices rather than to servers and makes it impossible to extract them from devices or share them with others.