Advantages of using a Virtual Data Room vs Traditional Data Room

Advantages of using a Virtual Data Room vs Traditional Data Room

A data room is a space created for housing data, usually of a secure or privileged nature. They can either be physical data rooms, virtual data rooms or data centers. They are used for many purposes including data storage, document exchange, file sharing, legal transactions and financial transactions.

Virtual data rooms

It is a secured online meeting place for all parties involved the virtual data room has become a tool to facilitate a deal course. Virtual data rooms are used for restoring and distribution of documents. The best ones offer military level security, multi-language support and wide ranging selection. A virtual data room is designed to have the same strength as a conventional data room. It is accessible over the allowed period hence a growing number of businesses and industries have moved to using virtual data rooms instead of physical data rooms.

Physical data rooms

Physical data accesses are more complex than they are for the virtual models. It requires specific hours to set for parties and visitors as they may need an individual time to access to avoid being in a room together.

Traditional data rooms

Traditional data rooms were once used to store data but are now losing market due to their slow level of storing data. The require many items such as photocopy machines, papers and files for storing data.

In comparison of traditional data rooms to virtual data rooms below are findings that were brought up

A traditional room is not always at the company’s office instead it is located at a nearby lawyer’s office for security purposes which increases the cost. While a virtual room is located on a secured sever at a third party Center. Its location is not important as long as there is an internet access to every user.


Creating a traditional data room involves photocopying of many papers, one cannot risk putting the only original copy of an important document in a data room only to have it damaged or disappeared, with a virtual data room, you only select a service provider or a software and the solution is solved

With a traditional centers only the person in the center is eligible of taking care of the documents but still it can disappear while if checked keenly a virtual data room can restrict on whom to see the document and who to copy it.

A traditional data room is costly after adding up labor to copy and index with legal office space to manage a multi data, while a virtual data room requires less effort to make the cost will be less after combining all the labor. A virtual data room is allows easy access all the time from anywhere around the world while traditional data room will require some potentials to bid as they may be busy to go through the data room

A virtual room has an online data room that can let anyone see detailed responses to a question requested for without sharing the information while a traditional data is restricted to only that person who is taking care of the information.

Traditional data rooms are mostly last minute and it is impossible to have last minute bidders therefore people prefer the virtual data room.

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