Physical documents and paper archives are vestiges of the past, which in today’s world are being replaced by digital repositories, but not all of them are ready to cope with the responsibility and protection of sensitive business data because they use only basic security tools. Virtual data rooms are online spaces for which security is paramount, it helps not only store data, but also conclude various financial transactions in their space.
History of the development of the virtual data room
It wasn’t that long ago that potential partners spent a lot of effort, time, and money during deal-making before a transaction was solidified. Companies had to exchange their sensitive data in designated physical vaults in order to somehow protect their sensitive information. There were too many costs to maintain these buildings: rent, staff salaries, supplies, equipment, and security features. All the same, paper documents could easily be destroyed or stolen.
Of course, the basic principle of making a deal is still relevant today, but modern technology has helped to make it much faster and more efficient. Virtual data rooms have become an improved replacement for physical buildings that allow you to conduct all important processes remotely while automating many workflows and making your task easier. They’re flexible and affordable, but they also have a decent level of security that no other similar cloud storage facility has been able to achieve. Below we’ll highlight the top 3 reasons why your company should use a virtual data room.
Many may mistakenly think that data rooms are the same as cloud storage, but they are sorely mistaken. Data rooms provide their customers with better security for sensitive data. Quality providers like https://vdrdienst.de/ provide international security certifications as a guarantee to protect your sensitive information.
Other security features include:
- Data encryption – no unauthorized user will be able to read the contents of your documents
- Double authentication – protects your space from unauthorized entry
- Detailed permission for access and interaction with documents – allows administrators to control the level of protection of their documents by restricting actions with documents to any user. You can deny visibility, printing, copying, downloading, or forwarding of the document
- Watermarks – protect against data leaks and help identify the source of the leak
- Remote Destruction -You can block access to a document even if it was downloaded to a third-party device
Simplified document management and collaboration
The number of documents that are required to close a deal is quite voluminous and would take a long time to organize if it weren’t for the data room. VDR offers the following data organization tools:
- Mass Download or Drag and Drop -allows you to load all the documents you need into the space at once
- Automatic formatting or support for all file types -saves you time
- Automatic indexing -helps you organize your document structure
- Smart search – finds the file you need in a fraction of a second.
VDR also helps you interact with your potential partners remotely without leaving your space. Discuss all the important points, ask questions, and get answers in a totally secure environment with a question-and-answer section or encrypted chat.
VDRs are more cost-effective than other ways to close a deal. They save you from having to make large investments as well as small costs. You won’t have to pay for anything other than the VDR provider.
The entire transaction process can be done remotely, you can access the space from any location and device, which means you won’t have to pay for travel, supplies, and equipment.