Pros and Cons of Virtual Data Room Software

Data and data security are becoming increasingly important in the age of the Internet. Virtual data rooms are suitable for secure storage of secret and confidential documents. However, there are some things you need to pay attention to.

Areas of Application For VDRs

Secret and confidential documents: what is a data room Fields of application of virtual data rooms What to pay attention to in data rooms

In today’s world, the protection of secret and confidential documents plays an extremely important role. Because the security of these sensitive documents must always be guaranteed, both during their storage and during their exchange. To this end, many companies rely on a virtual data room in which confidential information is protected from unauthorized access.

What Is a Data Room?

A virtual data room is a password-protected room, on a server or in the cloud. A data room is suitable both for the secure exchange and for the storage of confidential documents. An authorization system makes it possible to grant users read or write access, and it is even possible to authorize a user only for certain documents, which makes it possible to maintain the corresponding confidentiality obligations.

The virtual data rooms on the website of are among the safest and most popular data rooms in this country. Because they are highly secure data rooms where confidential or secret documents can be safely stored. The provider’s data rooms are triple certified, GDPR compliant and can be used immediately after ordering, with ease of use being a big advantage.

Data rooms have their origins in the field of so-called due diligence checks. Because during these checks, a data room was often set up as part of the sales process, to which only the respective bidders and consultants had access in order to check the documents therein. These data rooms have only been replaced by digital solutions over time with ever-increasing digitization, which has many advantages.


A VDR is an Internet-based application that can be used to grant access to confidential content to various parties. For this purpose, the corresponding documents can be stored in the data room in a structured way and access rights assigned to different user groups. This way, some of the authorized users can only read the documents in the data room, while other users can also edit them. Thanks to virtual data encryption, virtual data rooms offer the best possible protection when storing and transmitting confidential data. Particularly sensitive data can even be watermarked and only certain groups of users can be allowed to download them.

Typical Areas of Application for VDRs

Having already explained what virtual data rooms are used for, we would like to tell you at this point what they are used for and by whom.

Typically, companies use virtual data rooms to store and transmit sensitive documents to protect them from access by unauthorized persons. But courts and lawyers today also use digital data rooms, for example to transmit files or other confidential documents.

In the financial sector, digital data rooms are usually also used to ensure the security of sensitive data. These can be documents relating to the processing of transactions or the sale of real estate, which must be protected against unknown access.

What Should You Watch Out for In Data Rooms?

Companies looking for a secure data room must consider both the range of functions and the cost.


Companies should always ensure that the operator of a data room. Then, due to GDPR guidelines, data rooms of companies cannot be located on foreign servers. Moreover, even the software of the data rooms of this country must have been programmed and regularly adjusted.


The prices on the data room market are not uniform and therefore difficult to compare. Billing models are often based on technical parameters such as the number of users and the amount of data. The disadvantage here is that the actual costs can hardly be estimated in advance, depending on the application.

For secure budgeting, there are also flat-rate offers which are based on project type, scope and duration and often also include a service package. If customers are willing to commit to a supplier for a longer period, individual corporate terms are usually also offered.