Not so long ago, all business documentation was stored in physical warehouses, and when it came to concluding deals, partners spent countless hours searching and examining the necessary files. But times are changing, and now virtual data rooms have replaced the usual storage facilities. Virtual data rooms contain all the features necessary to conduct successful and efficient business transactions while ensuring complete security and confidentiality of the transaction. In this article, we’ll take a closer look at the benefits and applications of VDRs.
What is a virtual data room?
Virtual Data Rooms are business-oriented programs that were created to digitally secure sensitive documents. Upload any sensitive documents to VDR space and conduct M&A, IPO, investment, and any banking-related operations. VDR is flexible software based on the SaaS cloud platform, so it is supported on almost any device and can be accessed from anywhere in the world where there is a stable internet connection. This makes the collaboration process more productive, faster, and easier.
These programs have no alternatives because no cloud storage service can compare with it in terms of security. VDR has become the modern replacement for physical data rooms and outperforms it in almost every way.
When can a VDR be useful?
A data room is a convenient way to store and share documents, usually, the space has unlimited storage and supports multiple file types to make document management as easy as possible. The most common instances where VDRs can be used are:
- File transfer protocol alternative
For many years, FTB was the only way to download large files securely. However, the technology has had its drawbacks; it is slow, complicated, and not as secure as FDR.
- M&A and takeover
Originally, VDR was created as a tool for M&A, and although its capabilities now encompass much more, merger and acquisition data rooms take up most of the market. It provides the opportunity for invited users to view the necessary files without any risk
This process can take a very long time, up to several years, and accordingly, a lot of sensitive data will be involved during that time. VDR helps to keep this data intact and give access to whoever needs it
- Strategic Partnerships
Share important data with third-party users within the VDR and configure access permissions as you see fit.
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If your company needs constant monitoring of documentation, VDR will help you with that. It provides automatic reports on the actions of all users within the program and all document interactions.
Key Features of VDRs
So data rooms have some features that can improve your company’s security and productivity:
- Data encryption – protection against data leakage
- Double authentication – protection against unauthorized entry
- Automatic document loading and indexing – speeds up your document organization process, creates a clear structure, and provides a quick search
- Detailed permissions – allows you to control access and interaction with the documents (prohibit copying, printing, loading, and forwarding of the document)
- Watermarks – allows you to track the document even outside the program
- Remote Destruction -locks access to a file even if it has already been downloaded to another device
- Secure chats – allows you to exchange messages and important files in a safe way
- Simple interface- doesn’t take long to adapt to the space