In the not-so-distant past, companies used physical storage to store the protection of their sensitive data. There, they also conducted the basic processes of various transactions with their partners. What can now be done in a couple of hours takes days. But everything has changed with the advent of the Internet and digitalized storage. Companies can now store their huge databases online, exchange documents without leaving the office, and even close deals. A virtual data room is one of the best solutions to help companies work more efficiently.
What is a virtual data room?
Virtual data rooms are digital spaces that began in the early 2000s and were a secure place to store even the most sensitive documents. Still, over time, they have evolved to add more tools to their functionality that allow users to collaborate on projects, communicate and complete complex transactions. VDRs are used for due diligence, merger takeovers, IPOs, fundraising, legal proceedings, and litigation. Every industry can benefit from using the data room, from investment banks to healthcare institutions. VDRs are the most secure storage platforms that have been able to replace physical storage completely and even provide additional benefits.
Physical Storage vs. Virtual Data Rooms
Virtual data rooms have a significant preponderance of advantages over the old method of document storage, such as:
- Paperless – The fact that VDRs store data digitally means two things. One, you save a lot on paper and supplies, and it doesn’t take up physical space. Two, it can’t be stolen that easily. It won’t burn up, get damaged, or get lost
- Mobility – the virtual data room is accessible from any device and operating system. You and other users who have access to it can enter the space at any time of the day or night. Visiting physical vaults is limited, and you must commute to them, wasting valuable travel time. This includes you and your potential partners, who may be in another city altogether
- Savings – Maintaining an entire building is not an easy task. You need to pay rent and utilities, pay the salaries of additional employees, and buy modern security tools. A virtual data room is much cheaper and has a much higher security guarantee
The main features of VDRs
Virtual data rooms have innovative features not found in any other online storage facility. They provide military-grade security, automated routines, and efficient collaboration through the following features:
- Data encryption – When data is transferred, it is encrypted so no outside user can see its contents
- Dual authentication: Users are double-authenticated before logging on. This protects the space from unauthorized entry
- Digital marks -protect document copyrights
- Detailed permissions – allow you to adjust the user access level to documents depending on their duties and role. You can deny visibility, copying, printing, and forwarding of the document
- Self-executing documents – set deadlines until which the documents will be available, after which access to them will be denied, or you can cancel access to them at any time
- Mass uploading – automatically upload several documents at a time
- Automatic indexing -organizes files logically and makes them easy to find
- Smart Search – Find the document you need with a single keyword or character
- Question-Answer section – your invited users can ask you a question, and then you will receive an automatic notification, and you can answer it as soon as it is convenient for you