Virtual data rooms are an iconic addition to data storage and management systems. The advent of cloud technology itself is one of the greatest inventions of this century, and virtual data rooms are a prime example of it.
Data room software is acknowledged as the most secure technology for data safety. Is it true or is it just hype? Keep reading if you want to find out.
What are online data rooms?
Online or virtual data rooms are secure, online data repositories where businesses can store and manage their important or regularly used documents and files. A few years ago, data rooms were mostly used during mergers and acquisitions, but now they are part of almost every business sector.
An online data room allows the users and management to upload, access, edit, share, download, or print documents within a secured environment. Data rooms even allow multiple users to work on some shared documents.
Top 5 benefits of virtual data room software for businesses
Traditionally, data rooms were mostly used as data repositories, but the introduction of AI and other amazing tools made them mega business solutions. Today, businesses of all types use virtual data rooms as virtual workspaces and online deal rooms. Most importantly, the level of data security they provide is simply unparalleled.
In a nutshell, here are some top benefits of data room services for your businesses.
1. Centralized data storage
A corporation or enterprise comprising numerous departments usually maintains separate databases. For example, the finance department may have a separate database from HRM or marketing department. In short, the data is in dispersed form.
Online data rooms are cloud-based, remotely accessible, and centralized platforms. That means businesses can store all their data on one single platform, which is easily accessible for all employees from different departments.
2. Data security
Let’s just say it; data security is indeed the biggest advantage of using a virtual data room for your business.
The best thing about data room software is the data protection they provide from external and internal threats. External threats mean an unauthorized intrusion such as hackers breaking into the data rooms. Internal threats include your own employees misusing your business data.
Here are some amazing data security features in data rooms and their benefits:
- Multi-factor authentication provides protection against unauthorized entrants.
- Data encryption allows data room users to store or share the encrypted version of data. With VDRs, you can encrypt the document and the data inside it; this feature is rare in other data storage tools.
- Digital watermarks are very effective in preventing copyright problems. Digital watermarks can be an image, audio, text, or video. With digital watermarks, you can easily trace the creator of any document.
- Audit logs give you detailed reports on every conversation, document edit, Q&A sessions, all log-ins/log-outs in the data room, and every other activity.
- The device tracking feature helps the administration locate the IP address of any device logged into the data room.
- Remote purging is a unique feature that allows the data room administration to remove any device (and data room files in it) at any time. Remote purging helps protect data when a logged-in device is compromised (stolen or lost).
3. Controlled data access and sharing
Safe data storage is one aspect of virtual data rooms, and secure data sharing is another. A secure VDR gives you complete control over your important business documents. That said, you can control how and when the users in your data room can access your business data.
For instance, the management can set user access permissions according to the needs and roles of data room users. Admin can restrict any user or group from accessing restricted folders, documents, or even parts of documents. Admin can even limit document access for a specific time period.
Activating “fence mode” ensures that nobody can edit, download, or print that specific file. It also prevents users from taking snaps or screenshots of the VDR screen. What’s more, the administration or creator of any document can revoke access anytime, even if other users have opened that file.
4. AI-powered data analysis
Modern enterprises use virtual data rooms for bigger business transactions like IPOs, fundraising, asset acquisition, mergers and acquisitions, real estate sale and purchase, partnering, etc. These transactions are highly data-driven, and businesses make decisions on the basis of previous data and future forecasting.
Modern AI-powered virtual data rooms make the data analysis process more efficient. Based on previous information, data rooms recognize the data patterns and use them to predict future trends, ultimately helping businesses to make informed decisions.
Dataroom software is not only a secure and smart business solution, but it is also cost-effective. With a virtual data room, large-scale businesses such as enterprises and corporations can save more money than medium or small businesses. These giant corporations have to deal with a voluminous amount of data that requires massive storage space. That means these businesses have to spend more on expensive hard drives for storage and backup purposes.
Many virtual data room vendors provide unlimited storage space, which eliminates the need to maintain expensive hard drives and servers. Apart from that, data rooms help businesses save thousands of dollars yearly by minimizing or eliminating:
- Paper costs
- Printing costs
- Courier expenses
- Cost of printers, cartridges, folders, and other stationery items
On average, corporations in the USA spend almost $400,000 on the above-mentioned expenses per year; data rooms can minimize these costs.
Data rooms were initially remote data storage platforms, but AI and tech advancements have turned them into mega business solutions. Modern businesses use them as virtual deal rooms and workplaces. Despite being high-end tech business software, virtual data rooms are very budget-friendly and cost-saving; this is what makes them a desirable asset for businesses.
Here is more about virtual data rooms: https://data-room-software.org/.