Virtual Data Rooms: Not Just Another File Storage ServiceAuthor: Matt Hattam
Every PC user needs some form of file storage. Both for personal files and business documents, the demand for cloud storage has grown exponentially over the last decade and especially in the last 5 years. It has led to the introduction of a number of new services, such as Dropbox, Google Drive, Box, etc. They allow everyday users to store and easily share their personal files. On the other end of the spectrum are virtual data rooms (VDRs) built with an everyday business user in mind. Aimed at corporate companies who need to store their confidential data, VDRs are purpose-built around business information security. Vastly different from other file sharing data storage, here’s why virtual data rooms take precedence:
VDRs find themselves completely on their own in terms of what they are created for. While most file storage systems are generally made just for average consumers to store their data, VDRs are made specifically for corporate file storage. They support many features designed to maintain the integrity of your documents while providing uninterrupted access to them24/7/365. In terms of physical security, a virtual data room is already exceptional. The data centers hosting information are protected by experienced personnel, security cameras, backup generators, and even backup servers in remote locations that will run in the case of disaster. Not any other cloud file storage service can offer that. In terms of digital security, servers are protected by multi-layered firewalls and all documents get encrypted by the best commercial-grade, 256-bit encryption software available at each instance of use. All this makes VDRs much safer than any other file storage and sharing service.
Data and access controllability:
No other file storage and sharing service can give you the same level of control over user access levels. In most cases, you can invite people to view your data but you cannot control what files they see and therefore have to continuously add or remove uploaded data. Also, you will probably only be able to have one party viewing your data at a time. With a virtual data room, however, it’s a far more controlled and simple process. They give you, as the administrator of the data room, the power to control what information different individuals can see and even for how long they can view it. This means that you can run multiple deals at any given time in the same data room while maintaining full control over each deal. No other service will provide you with the same level of control; that is of particular importance for large businesses running many transactions concurrently. Moreover, if compared with physical file storages where potential clients or investors have to be present, the opportunity to access a virtual data room from anywhere and at any time adds a whole new level of convenience in a business transaction for your company.
Designed to handle thousands of documents, virtual data rooms offer features that help efficiently handle all that data. For example, VDRs will automatically number and index your documents when you upload them. This streamlines navigation through the plethora of documents within the data room. Other features include advanced document searching, ability to integrate the format of the data room into a windows explorer-like aesthetic for maximum compatibility, and smaller features sometimes taken granted like bulk upload, drag and drop and support for over 25 different file formats. It’s all well and good to also understand the benefits of these features over a generic file storage system. Increased ease of use and simple navigational tools will help you and the users of your VDR find necessary documents quicker, and therefore will spare more time for making critical decisions. This increased efficiency results in a better number of deals and more revenue in a given year.