Online data rooms are virtual storage facilities of documents and other information that can be accessed via the internet, usually through the use of passwords. Often used in M&A transactions to let both parties exchange and review documents. They can save money on hardware, a search function, and the security of sensitive information when compared with physical datarooms.

When deciding on a dataroom for online use, consider the storage capacity of the space and how easy it is to upload and download files. Text documents will occupy less storage space than technical drawings and high-res images. Some data rooms online permit compression of files to reduce space.

The best virtual data space also offers tools to aid collaboration and a user friendly interface. They also have an entire team of product support agents who are ready to help whenever needed. They can assist with setting up access rights to documents, enable document watermarking and give advice on how to make use of the online data room.

Finally, search for data rooms that allow you to export data in a secure format. This will make it easier to transfer data to a new provider in the case of a merger, or project end.

It’s also worth assessing whether an online data room has a flexible subscription plan to meet changing business demands. You can be assured that your data room is flexible enough to meet the needs of the future if you have the option to change the number or structure of users or the security settings, but without a long-term contract.