Watching the development of virtual data rooms in today’s marketplace, one can trace their growth and popularity. Experts predict that in a few years they will grow by several hundred million dollars. But such an increase must be substantiated by something. The main reason why VDRs are rapidly gaining popularity is the increase in the volume of business data and also the concern about their security. So how can VDRs benefit your business? In this article, we’ll look at its main benefits to any organization.
What is a Virtual Data Room?
A virtual data room is an online storage facility that is provided with strong security so that valuable data of your business can be stored there. Besides protection and storage, VDRs provide other important services to any business owner, namely, providing a space for secure exchange of documents and transactions with investors or potential partners, or customers.
By replacing physical data rooms, they have eliminated the need for paper documents, thus saving a lot of money. But these are not the only advantages.
Multi-layered security
VDR providers use their security methods on different levels, both general virus scanning and password, and document protection. This is why entrepreneurs appreciate this unique space so much. Some of the main ways data rooms use to provide protection are:
- Dynamic watermarks for files
- Modern 256-bit data encryption
- Automatic backup and file access control
Quality data room providers provide the room administrator with the ability to assign specific roles to users. Thus, when each user is assigned his role, he can act only within his capabilities, e.g. only view documents, not have access to some files, etc.
Addressing timing and speed
After purchasing dataroom, you may notice how your company’s productivity has improved dramatically. This is all because the web-space allows you to manage your data and employees. By doing bulk uploads of documents and multiple processes simultaneously and automatically, you save a ton of time for both your employees and yourself.
If your company is large, it means that many users will need access to the data room at the same time, this will not affect the speed of the program and will even help improve the feedback on the work.
You are free to add new users to the space in one click and just as easily revoke their access. And after that, you have full control over their actions and can monitor their work on a project or document.
Reduced costs
Above we mentioned the significant advantage of VDRs over physical data rooms. And the difference is significant, now you don’t have to worry about costs such as employee salaries, spending on paper, ink, document stitching, renting a room, and buying additional security measures. You get it all in a digital format and at a very reasonable price compared to what entrepreneurs faced before. Plus the VDR is very flexible to use, you can access it from anywhere and at any time, whereas you had to come to the physical data room by a certain time.
Higher level of transparency
During due diligence, your investors can see firsthand the transparency of your system. Here you can share confidential information openly, so you establish a relationship of trust with your partners, and then the transaction process speeds up considerably.