Data rooms became pretty widely used during the past several years. Corporations get diverse benefits implementing them. So there is no wonder the deal room market became very big and profitable. Brand new providers appear often, and every one of them is trying to surprise users with useful features on this endless battle for the loyalty of the audience.
But do virtual data rooms actually differ that much from ordinary cloud storages? And why would a company pay for it? Since there are many individuals who want to ask these questions, let’s figure out the technology behind the online meeting room.
What is a VDR?
Let’s begin with the basics and take a look at the software itself. It is a virtual repository where enterprises can store their sensitive data. But even considering that it is the most important function of such technology, the list of its instruments doesn’t end on simply being a repository. Data room offers its users a complete interface for all firm interactions. Here partners can exchange the information, talk about issues, get ready for meetings and much more. Basically, using this technology a brand will have a broad range of various tools that will help to develop the workflow of the team and whole enterprise.
So, while ordinary online repositories can only offer a virtual space so a company owner can store files there, virtual data rooms virtual data rooms are a complete enterprise instrument. These instruments can be used during Due Diligence, Mergers and Acquisitions, fundraisings, IPOs and other processes within the company.
Safety is important
For sure, not every brand interacts with the classified data constantly. But even though this information can be not really sensitive, any business owner would want to get their data stolen or illegally used. Virtual repositories like trendy Dropbox or Google Drive are not really protected – vast cases of data leaks have shown it to us pretty clearly.
Thus, the main difference of virtual meeting rooms is the data encryption and different ways of protection. Sure, ordinary cloud hosting services encrypt their transmission lines as well – but not really the transferred data itself. And if someone else has a direct link to the document, it can be easily stolen by hackers.
VDR providers encrypt not only transfer lines but files as well. There is no way they will be exposed to any kind of danger caused by malicious acts of hackers. Moreover, all electronic data rooms have a two-factor authentication. It means that to log in the user will need to enter the code that was sent to their phone in an SMS upon signing in.
Moreover, the owner of the deal room can manage the amount of access other team members have. Settings can be changed at any time. And if any unusual situation occurs, the room administrator can eliminate the file remotely or stop the access to it.
Unlike ordinary virtual repositories, deal rooms are made to advance the workflow of the company and among team members. So besides that participants can exchange the information with each other, they can as well get involved in talks, hold different votings, create Q&As and much more. It is rather useful to have all tools in one interface.
Additionally, leaders of firms have a possibility to watch the work process of their firms in the electronic data room . Some providers even offer an artificial intellect implemented in their programs. It helps to forecast situations and tendencies and get better insights. Moreover, CEOs can track thteam members and see if there are some problems in the work of the team.
In conclusion, there undeniably are diverse reasons to get a virtual data room in your corporation and stop using generic online storages . Once you try this technology, you will never want to get rid of it.