A secure online data room is a platform that permits multiple parties to share sensitive documents. These websites can be utilized for a variety of projects, such as business deals and legal cases. These rooms provide a variety of security features, like password protection and granular document permissions that can be configured down to the level of folders. In addition, these sites can be configured to limit access to documents by date and time or by IP address.

One of the most well-known uses of an online information room is in mergers and acquisitions, in which buyers need access to confidential documents. This process can take months and companies need a safe way to transfer huge amounts of data. Virtual data rooms enable customers to look over documents and save time and money by not having to travel to the company.

Before logging into an online dataroom, users need to sign a nondisclosure contract. Users must also establish an account, a password and agree to terms of service. Many vendors offer training programs to help users comprehend the system and how to gain access to the information they require.

A reliable online data room service will allow you to control access to your documents and can monitor user activity like when they enter the room, which documents they are looking at and how often they are viewed. The system will also permit you to backup your documents to a remote location, in the event of a catastrophe.