Businesses have always struggled when it comes to securing their sensitive data. Yet, data is a company’s most valuable asset, used during complex transactions, and its importance cannot be overstated now. Companies used to use physical data warehouses, where potential partners would arrive and begin a transaction process that could take months to complete. With the advent of digitalization, a lot has changed, and now companies are moving their operations online. Virtual data rooms have become the best way to store and share data securely. Learn more about their benefits in this article.
What is a virtual data room?
A virtual data room is a secure, certified space for businesses. It is designed to securely store and share digital documents, communicate, collaborate, and transact. VDRs were created based on cloud technology, providing fast operation, easy navigation, and a simple interface. The Data Room allows uploading documents of any level of secrecy to the space, as it guarantees high security and multi-level protection against data leakage. VDRs are suitable for work on various projects and due diligence, M&A deals, fundraising, IPOs, and more. Virtually every business sector can use its services for its purposes because every entrepreneur values security above all else. In addition, a data room can provide your business with effective remote working, flexibility, and reliable means of communication.
Virtual Data Room vs. Physical Storage
Virtual data room has been popular among business companies for several years, but businesses also prefer traditional document storage to physical storage. Below, we’ll compare the two types of storage based on the most important criteria and determine which is more efficient:
- Installation and Operating Costs
Entrepreneurs need to be prepared for many basic costs and an ounce of extra to maintain an entire physical building for document storage. For example, you need to rent or buy space, hire employees, install the necessary security measures (video surveillance cameras, ID card entry, etc.), and purchase supplies and equipment for the printing, photocopying, and stapling of documents. Also, don’t forget that you are incurring the expenses of the parties involved, which include travel, stay, and meals.
A virtual data room relieves you of all these costs; all you need to support this platform is to pay the monthly rates set by the vendor. In addition, VDR means a paperless way to work and is accessible from any location and device. Therefore, you save both your time and other people’s time and money significantly.
- Accessibility
As mentioned earlier, virtual data rooms are hosted on the internet, allowing you to collaborate without geographical restrictions. Physical vaults are limited to only those stakeholders in your vicinity.
- Document Preservation
Physical documents are subject to far greater risks than online data. You cannot insure your repository against fires, storms, and floods. A material document is much easier to steal by making a copy or a photograph. In addition, keeping physical storage in order is difficult because your data is piling up, and you will have a hard time finding what you are looking for.
Virtual data rooms provide the highest level of bank-level security. It protects your login with double authentication and encrypts documents, allowing you to set watermarks and detailed user permissions on them. Space keeps backup copies of documents on its servers, and you can easily restore them, whatever happens. Smart search lets you find the document you need quickly, and document management features help you create a quality folder structure quickly and easily.