Whether it’s investment banking or mergers and acquisitions, fundraising or litigation, real estate or corporate finance, data management wasn’t easy until virtual data rooms (VDRs) came into play. VDR software streamlines different business processes through its project management and collaboration tools.
So what exactly is an online data room software? Why do businesses use data rooms? Why is a virtual data room so helpful in different business sectors? You can get the answers to all these questions in this guide. Let’s start with the introduction of data room software.
What is a data room?
A data room, more commonly known as a virtual data room, is an online 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.
VDR software not only allows businesses to store their corporate documents, but they can share that data within and outside the organization in a highly secure and controlled environment. Users can retrieve data files from the data room from anywhere in the world, and that too without an internet connection.
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 regularly, so virtual data rooms may be 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 its 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, medical practitioners, and real estate agents can use VDR software as a data repository and collaboration platform. In short, virtual data rooms are not just designed for large businesses.
What are the benefits of using virtual data rooms?
From our discussion until now, it is obvious that VDR software brings a lot to the table. Still, we have tried to summarize its prime benefits here.
1. Secure data storage
Virtual data rooms have been a sigh of relief for individuals and businesses when it comes to storing important data safely. 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
Virtual data rooms are safer because of their multiple security features. For example:
- 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 encrypted form.
- The digital watermarking feature is very effective in minimizing copyright issues.
- Data room 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, all the contributors to that file can see what changes have been made and by whoь. Users can edit any file (depending on their access level) and leave notes.
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 laptop 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.
Why should you choose a top-notch secure data room service?
Are all virtual data room services equal? No, they are not, and you cannot ignore the importance of choosing the best data room services like Merrill, iDeals, DealRoom, and so on. Here’s why:
- They are certified data room providers; they comply with international security standards such as SOC2, FINRA, ISO27001, etc.
- They provide 24/7/365 customer support in multiple languages.
- They offer compatibility with multiple operating systems and devices.
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 immense growth in the VDR industry.
Choosing a diverse and secure data room service can be a great asset to your company. If you haven’t used a virtual data room for your business just yet, now might be a good time to give it a try.
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