A data room is an online storage facility that is secure and safe for business documents and information. They are used to conduct due-diligence during the process of selling, however, they can also be used for different purposes, like sharing information with partners, customers or investors.
Data rooms come in many different features however, they all have the same fundamental functions that are essential to any company that utilizes them. These include the ability to share large files, and also to store them with several parties. Flexible search capabilities make it easy to locate the relevant documents even when they are buried in data. Secure data encryption is a crucial feature to have as it protects the data from disclosure in case of accidental. To ensure that work is completed in a timely manner it is also useful to be able to manage tasks. With the rise of remote working and hybrid teams and remote teams, the ability to access documentation from any place with an internet connection is crucial.
It is also crucial to be able to remove information when documents have been shared with an outside party. A good data space should provide a simple redaction tool. This allows you to block out multiple instances or see page single instances with a single click of a mouse, rather than needing to select and delete them manually. Finally, it is also useful to be able keep track of activity in the data room, so that you can see who is looking at what and when.