Since the beginning of the digitalization era, companies worldwide have spent incredibly money on solutions to protect their data online. Still, chances are that none of them have achieved the desired result, and some lack the budget to build a strong security infrastructure. In both cases, a virtual data room can come to the rescue. VDR is an online solution that has become particularly popular recently because it offers strong security features and many other benefits, which will be discussed in this article.
What is a virtual data room?
A virtual data room is a cloud-based platform for storing and sharing confidential documents that businesses in any industry can use. VDRs are also designed to conclude complex transactions, such as mergers, acquisitions, and fundraisers. It also helps simplify and speed up due diligence. The online data room has become a modern replacement for physical storage that outperforms the older version in every aspect. VDR is flexible, cost-effective, secure, and efficient. Its functionality is not limited to storage alone; the data room provides document and project management tools, collaboration, and communication capabilities. Below we will highlight three main reasons you should use VDR for business data storage.
Business Document Management
The document flow of companies is huge; managing them is very difficult and tedious. VDR tools help make this task several times easier and automate routine work; they offer:
- Centralized storage
Virtual data rooms allow you to store all your data in one centralized location – but why is it so valuable? For example, a company comprises several departments (marketing, accounting, sales, finance, human resources), and each department stores data in its separate repository. The fact that all the data are scattered in different places makes interdepartmental coordination difficult, and when the time comes for due diligence, chaos ensues. The beauty of VDRs is that all documents are stored in one place and can be accessed from any device and OS.
- Efficient organization of data
To facilitate the work of your employees and guest users, you can use VDR’s data organization tools to download all the data at once, automatically convert it, and index it. Then, create an infinite number of folders and subfolders and use smart search to make it easy to find the document you need.
- Smooth data sharing
The administrator sets the roles and permissions for each user within VDR, so you can easily interact with your documents at the level you’re allowed.
Data room security is its main feature. VDRs are considered the best online storage today because they are certified solutions. In addition, they offer multi-level security with the following features:
- Two-factor authentication – protects login by requiring users to identify themselves additionally
- Access restriction – Administrators can restrict access to any file, prohibiting individual capabilities such as copying, printing, forwarding, and editing
- Digital watermark -protects the copyright of the file and tracks any editing and modification of the file
- Remote Destruction -The administrator can erase VDR-related data from any device at any time, which usually applies if the device has been lost or stolen
A virtual data room offers more features for less cost. Unlike physical storage, they don’t involve spending money on paper, printing, and other consumables. You also don’t have to pay courier costs because you can send the documents you need through space to any state or country—no need to spend money on travel and keeping potential partners during the transaction.