The data room is a particular secure online space that you can use as a repository for a company’s files. In addition, this is a convenient tool for interaction between team members, attracting stakeholders, analyzing changes in the project by stages, and more. Also, this is an excellent option for saving on stationery, consumables, courier services, renting premises, and much more. Online data rooms allow the exchange of critical financial and corporate business information with clients, investors, and individual project participants in a fully controlled environment.
Speaking about document management, it is the priority purpose of this software. With the help of modern VDRs, you can upload almost any type of document to the internal storage in a couple of seconds. If necessary, you can operate with a large number of files at once without performance loss, computer lags, freezes, and so on. The size of the secure VDR internal VDR storage depends on the pricing plan you have, but in practice, it is unlimited. All files that you uploaded to the platform are stored on remote and secure servers.
For ease of use, VDRs offer you a set of customizable filters and a fine search option. With their help, you can find the desired file by entering only part of the name or some textual content. After that, the system shows you a preview of the file. It allows to increase the efficiency of the workflow and avoid errors. Scroll on to learn about the social features of virtual data rooms and how to make the most of them.
What is the Structure of the Data Room?
A modern virtual data room allows you to change and customize the inner structure to suit your business needs. Functionally, a virtual data room consists of a series of folders and files that are filled with various kinds of documents. You can set up and organize folders so that they store only certain types of information. For example, for an investment campaign, you can create folder clusters for legal, IT, finance, tax, and other departments. After uploading documents, they immediately become visible to those users who have the appropriate access rights. If necessary, you can reassign and change these settings for new users and third parties.
As a rule, virtual room servers are located on different continents and duplicate each other. Thanks to this, your information is reliably protected, even in emergency cases. At the same time, data center administrators and VDR providers cannot access your data.
Why are VDR and Cloud Storage Service Not the Same?
Despite the similarity of the two types of services, there are significant differences between online data room software and regular cloud storage services. These differences determine that most types of businesses switch to VDR solutions, regardless of their type or size.
Reliability
A virtual data room provides a more secure repository for information. Unlike a regular mainframe, you can control which team members can access certain information and change those settings with a few clicks. If you are using standard storage, then a problem with your computer may result in you being unable to access your data. When using VDR, there is no such problem, and you can log into the system from any device with Internet access.
Security
Modern VDR (for example, data room for due diligence) provides an extensive array of security protocols, two-factor authentication, advanced encryption, role-based access, and more. In addition, someone may steal or damage your laptop, which directly affects access to data. With the VDR room, such a drawback is excluded. The system protects your data from leakage, hacker attacks, and more.
Availability
In order to start working in VDR, you just need to enter your username and password. You do not need to get an executable file, install the program on your computer, and so on. You can also work on the go as most modern VDRs support Android and iOS-based devices.
Scalability
If you work with traditional programs, then simply opening a table with more than 4000 results can cause the system to freeze or even crash. In the case of online data rooms, their functionality ensures seamless access to data, no matter how much information is stored.
Which Industries Use Data Room?
Below, you can see businesses and industries which consider VDR a must-have tool.
Technology
As a rule, technology companies deal with large volumes of corporate information that should not fall into the wrong hands. The success of projects, reputation, and financial well-being depends on this. At the same time, there is a need for intensive data exchange between individual branches, partner organizations, and so on. In this case, the VDR solutions come into play. You can use datarooms as tools for the reliable transmission of information. All stakeholders join the data room and function centrally.
Legal industry
Any legal company operates with large volumes of documentation. Currently, there is no need to rent physical storage facilities, spend resources on office supplies, courier services, and so on. Electronic data exchange within the VDR allows not only to save money but also to avoid inaccuracies, duplicate files, errors, and so on. Plus, the exchange process takes several seconds, regardless of the amount of information.
Startups
Startups use electronic data room at all stages of development: from creating an idea to implementation of their product and scaling. With the help of the data room, you can store all the information regarding your project and show it to stakeholders who can become potential investors. Inside the system, they can leave comments on documents, view presentations, participate in polls, and more. After you analyze the key folders and files that the stakeholders have viewed, you can build an optimal cooperation strategy.