What is A Data Room?

Today’s companies are increasingly faced with the problem of secure data storage and sharing. Since most data today is stored digitally, organizations are in search of not very expensive and reliable online storage facilities. Regardless of their goals, whether it’s for M&A deals or everyday data storage, a virtual data room is ready to provide you with all the comfort you need. In this article, you will learn what a data room is and what its main characteristics and features are.

What is a virtual data room?

A virtual data room is a special business space that is equipped with the most secure methods of protection and data management features, which allows you to store an unlimited number of confidential documents in your space, as well as to exchange them within the program between employees within the company and with third interested persons, who can enter the space only after an invitation from the administrator.

With the help of virtual data rooms, it has become much easier for companies to conduct various transactions, due diligence, and M&A, as the program automates many processes and allows you to conclude transactions even remotely. This not only saves you time and costs but also minimizes the risk of data breaches, strengthens relationships with potential partners, and provides easy access to data wherever you are and whatever device you use.

Why and who might need a virtual data room?

A virtual data room can be a universal solution for all those companies who are concerned about the integrity of their data, especially those organizations that often deal with sensitive documents. They may need the assurance of security standards to keep their operations running smoothly, and the data room can provide that assurance. The best VDRs use the best certificates and security protocols so that your company can exchange contracts, financial and accounting reports and decisions, real estate documents, and so on without any risk.

Some people falsely believe that the exchange of documents can also be done through the usual social networks or platforms like e-mail. networks or platforms like email, but they probably do not know that 80% of all hacks and data leaks happen via email because it is not secure.

The main advantages of a virtual data room

Virtual data rooms have essentially the same base, but their additional features may differ, below we highlight the main features that are most common in data room operations:

-Secure security methods – For data room providers, space security is the number 1 priority, so virtually all of them provide the best current security methods, which include data encryption, dual authentication, and password protection, protection against external viruses, and data backups. Also, additional data room security methods allow the administrator to control access and interaction with all documents that are in the space.

-Easy access to information and save time – Paper documents are becoming more and more irrelevant every day. This type of document can be easily lost, damaged, stolen, etc. Digital data in one place can not go anywhere. Plus you do not need to carry huge stacks of documents and manually search for the necessary file, with the smart search system you can find the right document in no time. 

-Functionality and Transparency – VDRs are extremely flexible, they allow you to browse and share files from anywhere, they are not time-limited, and they perfectly support any device. VDRs also provide transparency of activity with user activity tracking.