Online data rooms are virtual storage facilities of information and documents accessible via the internet, typically through the use of passwords. They are frequently employed in M&A transactions, they allow both parties to exchange and review documents. They offer a cost-savings on hardware, a searching function, and the security of sensitive information when compared with physical datarooms.

When selecting an online data room look at its storage capacity and the ease with which it is accessible to download and upload data. Text documents will occupy less space than technical drawings and high-resolution images. Some online data rooms allow you to compress your files to reduce space.

The best virtual data room is also equipped with tools for collaboration, and an easy-to-use interface. They also have a dedicated team of product support agents who are ready to help in the event of need. They can help with setting up access permissions, enabling document watermarking and give advice on how to make use of the online data room.

Finally, search for data rooms that permit you to export data in a secure format. This will make it easier to move the data to a different provider in the case of a merger or project termination.

It’s also worth considering whether an online data space offers a flexible subscription plan to meet changing business demands. The ability to change the number of users, folder structure, or security settings without the need for an extended contract will provide you with the assurance that your data room will be able to meet the needs of the future.