Why Businesses Trust Virtual Data Rooms for Confidential Information Handling?

Whether it is investment banking, M&As, fundraising, real estate, or corporate finance, data management wasn't easy until virtual data rooms came into play. Not just data management, but VDR software streamlines different business processes through its project management and collaboration tools.

So what exactly is online data room software? Why do businesses use data rooms? Why do businesses nowadays trust a VDR for secure document sharing? Here are the answers.  

What is a virtual data room?

A data room is an online storage space for storing business, personal, or corporate data. Fundamentally, it is an alternative to traditional paper documentation systems, but what makes data rooms better are their additional features that help businesses with other affairs.

Data room software not only allows businesses to store their corporate documents, but it also allows them to share that data within and outside the organization in a highly secure and controlled environment. Users can retrieve files from the data room from anywhere in the world.

One of the best things about virtual data rooms is that you can store data in different formats. Moreover, all the high-end virtual data rooms support common operating systems such as Windows, Linux, iOS, Android, etc.

Why do businesses use online data room software?

People assume that virtual data rooms are just suitable for corporations, enterprises, or large businesses, which is totally wrong. It is true that these types of organizations have to deal with massive quantities of data on a regular basis, so virtual data rooms are their prime choice.

However, virtual data rooms are equally useful for professionals who offer their services independently. For example, a freelancer can use a virtual data room to collaborate with their clients and use it as a repository to store work-related material. In fact, data room software is a great option for freelance agencies to ensure maximum collaboration.

Similarly, law practitioners, chartered accountants, SMBs, startups, and real estate agents can use VDRs as a data repository and collaboration platform. In short, virtual data rooms are designed for all types of organizations and professionals.

What are the benefits of using virtual data rooms?

“Virtual data rooms are for-all business solutions. They are safe for every type of business transaction and are easily deployable. You can use them as virtual workspaces or secure deal rooms. What’s even better is that you get to choose from a large number of reliable options,” says Elisa Cline, marketing specialist.

Yes, data rooms are secure solutions, but choosing the right one is important. That is why exploring the best data rooms on the market is important to make an informed decision.

Below are the key advantages of using trusted data room providers.

1.      Secure data storage

Virtual data rooms have been a sigh of relief for individuals and businesses when it comes to compliant data management. Yes, there are other digital data storage options, but there are a few problems with them. They are

·   Not as secure as VDRs and are more prone to cyber-attacks.

·   Controlled by third parties

·   Usually not integrable with other major operating systems.

A secure data room comes with advanced features like:

·   Two-factor authentication keeps the data room safe from unauthorized entries.

·   The remote purging feature allows the data room administration to delete all the data from lost or stolen devices.

·   Data encryption allows users to share data in an encrypted form.

·   The digital watermarking feature is very effective in minimizing copyright issues.

·   Audit logs provide a record of every activity in the data room.

2.      Seamless file sharing

VDRs make it ridiculously easy for users to share files. In fact, multiple users can work on a single file simultaneously. The best part is that all the contributors to that file can see what changes have been made and by whom. Users can edit any file (depending on their access level) and leave notes/annotations.

Secure data sharing is very important in data-sensitive business deals such as mergers and acquisitions, IPOs, fundraising, auditing, etc. Businesses can share their confidential information with external parties and set access restrictions according to their needs. Not many data solutions can provide such a level of security and comfort.

3.      Remote access

Gone are those days when you could access business documents only during business hours. Virtual data rooms give you 24/7/365 access to business data from anywhere in the world. As a matter of fact, modern virtual data rooms allow you to access data room material without an internet connection.

What’s more, you don’t have to carry your laptops everywhere just to access your VDR. Almost every high-quality data room comes with mobile apps for Android and iOS. In short, your business data access is just one click away.

Top virtual data room vendors to consider

Are all virtual data room services equal? No, they are not, and you cannot ignore the importance of choosing the best data room services. Here are some recommendations to consider:

·   Ideals: Offers enterprise data security features, seamless integration with third-party tools, and unparalleled customer support service.

·   DealRoom: Offers a wide range of tools for advanced deal management and handling complex transactions.

·   Firmex: Provides advanced solutions for secure file sharing for all types of transactions and business sectors.

Final words

Virtual data rooms are the future when it comes to data management automation and project management. Businesses of all sizes and types are switching to more reliable solutions like VDRs, and it can be seen in the immense growth in the VDR industry. Choosing a diverse and secure data room service can be a great asset to your company. If you have not used a virtual data room for your business yet, now might be a good time to give it a try.