An online data room is a secure cloud-based service that allows you to share sensitive data with multiple parties. These sites can be used for a variety projects, such as business deals and law cases. These rooms come with various security features such as password protection, and document permissions which can be set at the level of folders. These sites can also be set up to limit access to users based on their IP address as well as date and time.

One of the most well-known uses of an online information room is during mergers and acquisitions, in which buyers need access to confidential documentation. This process can run for months, and businesses need to be able to transfer large amounts of information. Virtual data rooms top data room enable customers to look over documents and save time and money by not needing to travel to the office.

Before logging into an online dataroom, users must sign a nondisclosure contract. They also have to create an account with a username and password and accept the terms of service and privacy policy. Many vendors offer training to aid users in learning how to use the system and access the information they require.

A good online data room service will allow you to manage access to your documents. They can also monitor user activities, such as when they enter the room, which documents they are looking at and how often they look at them. The software should allow you to backup your files in the event of a disaster and transfer them to an unreachable location.