OneDrive Data Room: Quick overview

Microsoft OneDrive is a cloud-based file storage and collaboration tool that many businesses use for general document sharing. However, it's important to understand that OneDrive is not designed for sharing sensitive documents during due diligence, fundraising, and M&A processes. In this overview, we'll explore what OneDrive's capabilities actually offer and how they compare to modern data room solutions like Papermark.

OneDrive data room explained

Microsoft OneDrive Data Room is a cloud-based solution that provides a basic environment for document sharing and management. It's designed to help teams organize and share documents through a familiar Microsoft interface, though it lacks many enterprise-grade features found in dedicated data room solutions.

Key features of OneDrive data room

Document organization and management

OneDrive provides basic tools for organizing sensitive documents:

• Hierarchical folder structure for logical organization
• Bulk upload capabilities for document management
• Version control to track document changes
• Basic sharing permissions
• Limited document protection features

The platform's familiar Microsoft interface makes it easy for users to navigate through documents, while the basic organization tools help maintain a structured approach to document sharing. For detailed guidance on how to share documents on onedrive, check out our comprehensive guide.

Security and access control

OneDrive offers fundamental security features:

• Basic permission settings (View, Comment, Edit)
• Two-factor authentication
• Link sharing with access restrictions
• Basic activity monitoring
• Limited audit capabilities

While OneDrive provides basic security measures, many users wonder is onedrive secure for business use. The answer depends on your specific security requirements and compliance needs.

Activity tracking and analytics

OneDrive provides limited insights into document usage:

• Basic activity monitoring
• Simple viewer analytics
• Download tracking
• Basic sharing statistics
• Limited reporting capabilities

For more detailed insights into onedrive analytics capabilities and limitations, explore our dedicated guide.

OneDrive data room pricing and availability

OneDrive is available with several pricing tiers:

• Free: 5GB storage
• Microsoft 365 Personal: $6.99/month (1TB storage)
• Microsoft 365 Family: $9.99/month (6TB shared storage)
• Microsoft 365 Business: $6.00/user/month (1TB storage per user)

Note: For the most up-to-date pricing information, please visit the official Microsoft 365 website as prices and plans may change over time.

OneDrive data room: key limitations

Microsoft OneDrive and Google Drive are not tools dedicated to sharing confidential information. While they work well for everyday business collaboration, they do not meet specific business needs that result from good practice in conducting proceedings such as transactions and audits.

The main difference between VDR and popular cloud disks concerns the security of stored information and amenities. While VDR also works in the SaaS model, it is distinguished from popular cloud tools by advanced functions of traffic supervision and features allowing, for example, to speed up the entire procedure.

Key limitations include:

• No transparent structure of folders and files with one-click access control
• Limited activity reports (no detailed information about who, when, and for how long opened files)
• No built-in watermarks or redaction tools
• No print screen lock or download restrictions
• No built-in antivirus or advanced compliance features
• Anyone with a link can access files without proper authentication
• No individual project manager or dedicated Q&A module

Both OneDrive and Google Drive have access to the content of each document stored on their servers. While this doesn't mean they infringe privacy, the awareness that data may be processed for marketing purposes is not ideal from the point of view of best confidentiality practices.

For processes that require special control over information provided, these tools will not do the job. When dealing with highly confidential information such as intellectual property, strategic company plans, financial statements, or investments, a dedicated VDR ensures the highest security measures are used.

While OneDrive does allow you to to share onedrive folder with external users, this basic sharing functionality lacks the advanced controls and security features required for sensitive business transactions.

Why consider Papermark as an alternative?

Papermark offers a comprehensive virtual data room solution with advanced features designed for secure document sharing. The platform includes dynamic watermarking that automatically adds viewer information to documents, password protection for controlled access, and comprehensive security policies.

Detailed page-by-page analytics

Unlike OneDrive's basic activity tracking, Papermark offers comprehensive analytics that provide deep insights into document engagement:

• View Duration: Track exactly how long viewers spend on each page
• Page-by-Page Tracking: See which specific pages receive the most attention
• Geographic Data: Understand where your viewers are accessing from
• Device Information: Know what devices and browsers your audience uses
• Download Tracking: Monitor when documents are downloaded
• NDA Signing Status: Track who has signed required agreements
• Custom Field Data: View responses to custom questions

Advanced link permissions and security

Papermark provides granular control over document access through its comprehensive link settings:

• Email Verification: Require viewers to verify their email before accessing documents
• Allow/Block Lists: Create specific lists of allowed or blocked viewers
• Password Protection: Add an extra layer of security with password requirements
• Screenshot Protection: Prevent unauthorized screenshots of your documents
• NDA Requirements: Require viewers to sign NDAs before accessing sensitive content
• Custom Fields: Collect additional information from viewers before they access documents
• Feedback Collection: Gather direct feedback from document viewers

For teams that need detailed engagement insights, Papermark provides advanced analytics that track viewer behavior, time spent on each page, and detailed engagement metrics. The platform also offers:

• Unlimited data rooms and storage for €99/month
• Custom domains and white-labeling options
• Self-hosting capabilities for organizations with specific security requirements
• Open-source flexibility for customization
• Comprehensive API access for integration with existing workflows
• Advanced Q&A module for deal management
• Detailed audit trails and compliance features

Try Papermark data room

Feature comparison

Conclusion

While Microsoft OneDrive provides a basic solution for document sharing, it lacks many essential features required for professional data room operations. For organizations seeking enhanced security, advanced analytics, and comprehensive deal management capabilities, Papermark offers a robust alternative with features like dynamic watermarking, page-level engagement tracking, and open-source flexibility.

Learn more about Data Room features