The market for virtual data rooms is increasing every year as more and more companies worldwide decide to use them. So what’s so special about this tool? First, VDR is a secure space to store and share documents, which can be very similar to other cloud spaces like Google Drive or DropBox. Then many people wonder if it’s worth overpaying for data room services when they can do the same thing for little or no cost. In this article, we’ll try to figure that out.
Virtual Data Room vs. Shared File Sharing Programs
Virtual Data Room does have a few features in common with general file-sharing programs: they offer storage space, document sharing, and the ability to share. However, that’s where their similarities end. Unfortunately, not all business companies understand this, and to save money, and they use unreliable platforms to share sensitive documents. Still, it turns out that these solutions offer no privacy and put the entire operation at risk. At the same time, the virtual data room is certified software that is suitable for handling confidential documents and allows for complex business transactions such as due diligence, IPO, fundraising, mergers and acquisitions, and more within the space.
VDRs-ensuring the actual value of the transaction
The Data Room, among other things, offers valuable business management tools. These solutions can ensure a smooth and speedy transaction process because they automate many repetitive processes. Above all, this applies to document systematization:
- Mass Download function – uploading any volume of documents in one click
- Automatic indexing – makes it easy to find the files
- Support for any file type -without wasting time on data conversion
- Smart search – finds any file by one or several keywords
Another significant advantage of VDR is complete control over access and interaction with documents – the program administrators can restrict visibility, copying, printing, uploading, and forwarding documents to users depending on their duties. This will speed up and simplify document handling and provide better protection against internal data leakage.
Cloud storage services like Google Drive can only deny and allow access to a document, but their protection is not something that can’t be bypassed.
Improved Security Capability
Business companies choose Virtual Data Room mainly because of its robust security, not found in any other type of cloud storage. Its crucial security features include:
- Bank-level encryption -protects data from data leakage during storage and sharing, encoding the contents of the document and making it unreadable to third parties
- Watermarks -protect copyrights, reduce chances of data leakage
- Remote Destruction feature -locks access to the document even if it was downloaded to a third-party device
- Dual authentication – protects your password from hacking
- Automatic real-time reports and notifications -allows you to be aware of all events inside the VDR. For example, you will always know if someone has accessed your documents
Communication abilities
VDR provides its clients with quality interaction features, where you can meet with your potential partners and discuss anything concerning your project. Thus, you can use encrypted dialogs or go to the question-and-answer section. Such a way of communication will allow you to deal with all the issues without a live meeting, save your time, and make the transaction faster.
Thus, a virtual data room is the most suitable option for storing business data on the Internet. It provides ideal privacy for storage and transactions and convenient management and usage features, increasing company productivity and simplifying many processes.