As more businesses move toward a cloud-based workflow, the need for greater data security grows every day. If your company, like so many others in modern times, has begun to integrate remote working into daily protocol, and both communications and the sharing of transfer of sensitive information are no longer strictly performed in a physical form, than the new industry standard of utilizing a virtual data room may be the most convenient and surefire way to increase data safety and overall workflow. Here, we’ll look at just three of the most common and popular applications for virtual data room function and how you, too, can install it into your team’s daily protocols.
1. VDRs have increased data security
The main reason some companies have held out on integrating a virtual data room (or VDR) is the initial skepticism regarding information securities. Many businesses lean heavily on the older assurances of hard copies and in-person transactions, but take into account the solid benefits of switching to an online data room or VDR. As an increase in the exchange of both sensitive data and intellectual property has moved onto a virtual platform, all VDR vendors have risen to the challenge of meeting higher security needs. Many startups that have been using such popular consumer-grade sharing platforms, such as Google Drive, Dropbox, and OneHub, have likewise moved into industrial-strength secure file smartroom software for their confidential data.
By opting for a data room virtual alternative, as opposed to working closed-door meetings behind the age-old physical data room practice, you’ll benefit from new innovations in confidentiality technology by default. All parties that share access to VDRs for business transactions are noted and granted permission via an administrative lead, and all communications are made to withstand future information audits. In essence, anyone who participates in the ease of use that comes from a virtual data room provider also benefits by the guaranteed factor authentication, advanced permissions, and digital due diligence that comes with the software’s own protocols. Ultimately, not only are those confidential documents and communications secure, level of access and decision-making of the transactions are available to both parties, as well. With a virtual data room, you and your collaborators are on the cutting edge of internal security.
2. VDRS are convenient
Aside from the security measures that go hand-in-hand with utilizing a virtual data room solution for your business needs, there is the major benefit of increased convenience. Travel and geography have long dictated the timeframe for in-person meetings, largely due to the location of a secure workspace. Moving those dealroom exchanges of information into the secure platform of the virtual world can also offer complete control, while making the sharing of data significantly faster. Secure convenience is what data room providers have in mind in the software development.
Regularly using a VDR within a strategic partnership to upload deals, mergers and acquisitions, important brainstorming exchanges of intellectual property, and financial transactions is the best way to save time and move your ideas into the world with swifter turnaround. As a sound application of secure data rooms, the convenience of replacing the need for in-person physical data room scheduling is unsurpassed.
3. Virtual data rooms are cost-efficient
When applied to replacing the traditional physical data room, a VDR not only offers security and convenience; there is the pragmatic benefit that money is saved in numerous workflow areas. When a major meeting, in-person transaction, or deal is scheduled, usually the company enlisting other interested parties into possible collaboration is on the hook for supplying the location, as well. This is common in many industries and financial institutions for such delicate activities as fundraising, due diligence, M&A transactions, litigation, and private equity closings. Within the world of finance, venture capital dealings, as well as the due diligence process are performed with representatives of both parties, as well as members of their law firm counsel.
If a major company has an in-house secure data room or deal room for meetings regarding confidential information, one facet of the problem is solved. More often, however, travel between both parties is commonplace, and VDRs provide a secure location and, potentially, third-party security. Here, either one or both parties are financially responsible for hosting the secure meeting. By applying a VDR in its primary function as a repository for valuable data and secure data management, the potential buyers, bidders, or seller saves on a large portion of a budget initially set aside for a physical data room.