Using SharePoint as a Virtual Data Room

Introduction
Why Consider SharePoint as a Virtual Data Room
Advantages of SharePoint as a Virtual Data Room
The Limitations You Need to Be Aware Of
Where Govern 365 Adds the Missing Intelligence
SharePoint Alone vs. SharePoint with Govern 365
Conclusion

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Introduction

When businesses talk about a Virtual Data Room (VDR), the first things that come to mind are secure file storage, controlled sharing, and easy collaboration for sensitive projects like mergers, audits, or fundraising. Traditionally, VDRs are offered by specialized vendors, but here’s the interesting part: if your organization already uses Microsoft 365, you might already have a powerful alternative at your fingertips-SharePoint.

Why Consider SharePoint as a Virtual Data Room?

At its core, SharePoint is a content management and collaboration platform. It’s designed for secure document storage, controlled sharing, and teamwork. With the right configuration, SharePoint can be tailored into a secure virtual data room for deals, audits, compliance projects, or any scenario requiring confidential document exchange. SharePoint wasn’t originally marketed as a virtual data room, but it has the essential DNA:

Dedicated project sites can be created for each transaction or audit.
Granular permissions let you define exactly who has access to what.
Audit trails and version history track every action taken on a document.
Information protection policies can encrypt files, prevent forwarding, or even apply watermarks.
Microsoft Teams integration ties conversations directly to shared documents.

With the right configuration, SharePoint can provide the secure and collaborative environment a data room demands.

Advantages of SharePoint as a Virtual Data Room

Cost-effective – If you already own Microsoft 365, there’s no additional license fee.
Secure by design – Backed by Microsoft’s enterprise-grade security infrastructure.
Familiar user experience – Employees already know how to work with Office apps.
Strong collaboration – Real-time co-authoring and seamless Teams integration.
Scalable – Equally effective for a small investor portal or a large global project.

The Limitations You Need to Be Aware Of

Yet, SharePoint is not a perfect replacement for a specialized VDR.

Complex to configure – Permissions and governance require expertise and constant oversight.
Missing advanced VDR features – Built-in Q&A workflows, redaction, or analytics dashboards aren’t available.
Guest user friction – External stakeholders may face login hurdles.
Compliance requirements – Some industries or regulators may still expect a certified VDR solution.

Put simply: SharePoint is a toolbox with everything you need, but it’s not automatically assembled for the job.

Govern 365 has streamlined our workflow, allowing secure collaboration and fast sharing of sensitive files with external partners. Its flexibility, clear pricing, and integration with SharePoint make it an ideal solution for our business needs.

Alex Friend
Head of Business Intelligence & IT

Where Govern 365 Adds the Missing Intelligence

This is where Govern 365 steps in. It doesn’t replace SharePoint – it elevates it. By layering automation and governance on top of Microsoft 365, Govern 365 turns SharePoint into a ready-to-go virtual data room that meets business needs without administrative complexity.

Why Govern 365 Is a Smarter Choice

One-click provisioning – Launch a fully secure and compliant data room instantly.
Automated governance – Permissions, sharing, and retention policies are applied consistently, without human error.
Simplified external collaboration – External users get the right level of access without IT firefighting.
Audit-ready reports – Generate compliance documentation instantly, with clear visibility of activity.
Risk protection – Prevent oversharing and accidental data leaks before they happen.
Native Microsoft environment – All content stays within your Microsoft 365 tenant.

SharePoint Alone vs. SharePoint with Govern 365

Feature	SharePoint Alone	With Govern 365
Setup	Manual, IT-heavy	Automated, one-click
External Sharing	Functional but clunky	Smooth and reliable
Compliance	Requires ongoing effort	Audit-ready by design
Security	Strong but admin-dependent	Guardrails reduce human error
User Experience	Familiar but inconsistent	Streamlined and professional

Download VDR Whitepaper

Stop spending on purchasing expensive Virtual Data Room (VDR) solutions. Use Govern 365 to quickly create Microsoft 365 data rooms or SharePoint online data rooms.

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Conclusion

SharePoint can absolutely function as a virtual data room. For many organizations, it’s a secure, cost-efficient option that fits naturally into the Microsoft 365 ecosystem.

But if the goal is to reduce friction, ensure compliance, and provide a polished experience for both internal teams and external stakeholders, then Govern 365 is the smarter choice.