UNITED STATES—Data room, Virtual Data Room, or VDR. The term is not that new, but it is not popular among the general public because it usually evoked interest only in large companies. In simple terms, virtual data rooms are cloud storage services that are located at the provider’s office and do not require you to maintain them; these servers allow you to exchange information with employees, partners, customers, etc.

Every business can find its own advantages in using data room services. They help you manage finances, keep documents organized and accessible, and provide access to files from anywhere in the world, especially useful for remote work.

Space saving, previously, large companies would spend thousands of dollars on renting physical storage spaces and updating them, along with the time spent retrieving documents. Nevertheless, fortunately, this problem has almost disappeared. Nowadays, you can pay a few hundred dollars per month and forget about huge stacks of paperwork, saving the most important thing — your employees’ time.

How Data Room Software Can Help You

In the previous section, we briefly mentioned the benefits of virtual data rooms, now let’s go into more detail with examples.

Cost savings

Physical archives take up a lot of space and require constant monitoring. With data room software, there is no need to worry about limited space for new documents or additional costs such as security, tracking new documents, and monitoring people who interact with them. However, this benefit applies more to medium and large businesses than to small shops and other enterprises.


Efficiency is the biggest advantage of virtual data rooms. Nowadays, it is hard to imagine a company that keeps its documents physically and performs all operations on physical copies. VDR is most commonly used in the financial, real estate, and legal sectors, which of course implies the possession of a large amount of private information.

Depending on the project and permissions, online data room software allows both clients and employees of a particular company to access important documents without delays in sending, faxing, or delivering them. Data rooms also make it easy to keep a history of all actions and create backups.

Confidential communication and protection of the information

Virtual data room providers have always prioritized information security. Many providers have an excellent history of information security management and are proud of the fact that no unauthorized person can get their data. Data protection methods are a complex topic, but it is essential to know that your data’s security is a priority for these companies, as a data breach can harm a company’s reputation.

Online Data Room Software Providers

There are many providers of online data room software, but it is difficult to determine which one provides the best data rooms. The answer to this question depends on your specific requirements for an electronic data room. Let’s examine the main providers:

  • iDeals
  • CapLinked
  • OneHub
  • Digify
  • DocSend
  • EthosData

Each of these companies is worth considering, and if you are thinking of using a VDR, we suggest examining all your options and choosing the best one for you. When choosing a provider, pay attention to the amount of memory you can use and the program design (user interface).

Their main functions are similar: You can upload files to a repository, in some providers you can simply drag and drop them into a folder, and in others, you need to open the file upload function. The security features may differ slightly, but the average user will not notice the difference.

Typically, the main difference is in the price and type of technical support. The more support the company provides, the more expensive the subscription will be.

For instance, iDeals offer a free trial period and technical support to help you build your virtual data room in the best way possible, while CapLinked operates more like a regular cloud storage service like Google.


Virtual data room services have already become an important part of many businesses without us realizing it, and they have proven to be profitable many times. If you have your own business or project, then a VDR is what you need. You can contact technical support for advice and use the trial period to see if you like it. If not, you can end it.