A secure online data room is a platform that permits multiple parties to share sensitive documents. These sites can be used for a variety projects, including business transactions and legal cases. These rooms have a range of security features, like password protection and granular document permissions that can be configured down to the level of folders. Additionally, these rooms can be configured to restrict access to documents by date and time or by IP address.

Online data rooms are used in mergers and purchases when buyers need to access confidential documents. This process can take months, and companies need a safe way to transfer large amounts of information. Virtual data rooms allow buyers to examine documents without having to travel to visit their website the company’s offices which can save time and money.

Before logging into an online dataroom, users need to sign a nondisclosure agreement. Users must also establish an account, a password and accept the terms of service. Many companies offer training to help users learn how to utilize the system and 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 activities including when they enter the room, which documents they browse through, and how often they look at them. The software should permit you to backup your documents in the event of an emergency to an unreachable location.