What is a virtual data room?
Virtual Data Room (VDR) is secure online storage of documents related to business, legal transactions, or litigation. An electronic data room uses a central server and an extranet connection with highly controlled access. It uses a secure login provided by the relevant supervisory provider or authority responsible for disabling or enabling secure login at any time.
The need for a virtual data room
The due diligence data room plays a vital role in securely managing mergers and acquisitions, bidding, and contract negotiations. This will help streamline and secure the deal management process.
According to research conducted by Intralinks, 90% of VDR users believe that a quality solution plays an important role in the success of an M&A deal.
If you compare virtual data rooms to common file-sharing programs (such as Google Drive), VDRs are designed to handle thousands of documents and protect them from hacker attacks. Using VDR will be easier because of its structured folders and great security.
File sharing systems are a cost-effective and intuitive solution for storage and sharing functions. This solution has cross-enterprise functionality. However, virtual data rooms provide greater data protection.
It provides more security features for file sharing, such as timeout or automatic expiration, document activity reports, and document viewing, printing, and saving restrictions.
Prices for virtual data rooms will vary by provider. This is similar to a cell phone or internet pricing plan. You have to pay the basic fee and then additional costs can be paid based on the extra features required. Some providers also offer unlimited rates at a predictable cost.
Here are the most popular functions of data room software that every business needs and uses.
- UPLOADING FILES BY DRAGGING
Populate a new data room with one click. Drag files and folders from your computer to the download window. No plugins are required.
- BULK DOWNLOAD TO SAVE TIME
Instantly upload documents to the data room with no file size or number limits. They will be downloaded in seconds.
- DOWNLOAD FILES IN ANY FORMAT
Upload files in any of the over 25 formats. No special file preparation is required before downloading. They are converted to a secure PDF format that can be viewed in any web browser, so you don’t need any additional software.
- FAST SEARCH FOR FILES USING LABELS
Labels perform a dual function. They help sort your documents and can be used as search filters. Use multiple tags to organize files according to the needs of your project.
- INTEGRATION WITH WINDOWS GUIDE
VDR automates the uploading and downloading of data. It will help you easily synchronize the contents of your desktop, shared folder, FTP server, or corporate file storage with the data room, and integrate the data room operation with corporate content management systems.
- AUTOMATIC INDEXING
Thousands of documents and folders are automatically numbered when you upload or move them. The data room index does not need to be created or edited manually.
- FULL-TEXT SEARCH
Quickly search for information using keywords or various search filters. The text recognition system looks for a word or phrase in any document contained in your data room.
- SIMPLE MANAGEMENT OF FILES AND FOLDERS
Upload, delete, merge, move, browse, download, restore and rename files and folders with ease. Combine the contents of multiple files into one PDF file.
- BUILT-IN DATA EXTRACTION FUNCTIONALITY
Quickly remove text, images, or an area of a document to protect sensitive data and save time using third-party tools.
- REMOTE ACCESS
Access to files is controlled by encrypting documents when opening and downloading. Entry rights can be revoked even when the document has already been downloaded.
- DYNAMIC WATERMARKS
You can add a watermark to your document, which will be displayed when you view, print, or download it. Personalize watermarks by adding username, IP address, time, and date of document access.
- SAFE VIEWING WITH PROTECTIVE NETTING
Restricted View mode protects confidential data. The user can see only the central part of the document, and the rest of the information will be covered by a movable protective grid.
- DETAILED PERMIT SYSTEM
Configure access rules for each document and folder you have added to the data room. You can choose from eight permission levels: Restricted View, Download Encrypted File, Print, Download PDF, Download Original, etc.
Secure document exchange
After all, in any scenario where a company needs to securely exchange documents with service providers, potential investors, other third parties, and even your own employees, a secure data room with strong security measures already in place will greatly simplify the process. Perhaps best of all, participants don’t have to worry about information being stolen or misused.
So VDR can be useful for executives who need to share confidential files and data with each other, HR departments responsible for maintaining employee files, project managers responsible for various aspects of business operations, and a host of other scenarios.
The information of dataroom software is often stored in different places depending on where the provider’s data centers are located. Providers invest in security to protect customer data.
Depending on the server provider, some people make multiple copies of their data and store it in different locations to ensure that it is not destroyed or inaccessible in the event of a natural disaster.
The ideal VDR is one that meets all your requirements. Some virtual data rooms are known for their collaboration tools, while others stand out for their security features.
However, some elements are required no matter which data room provider you choose. These might include file security, collaboration tools, ease of use, customer support, compatibility, etc. Do not forget that you should also review data room services to make a clever choice.