Virtual Data Room for Secure File Sharing
Date: 11 September 2018 Share on Twitter Share on Facebook
Every business that values their intellectual property needs security. The corporate world has always needed a secure way for file sharing with clients or potential investors. It meant setting up physical data rooms and inviting the parties to view the data in such rooms. That was too slow and expensive, so there was a need in digital methods.
Enter the virtual data room (VDR), a secure and efficient method of digital data storage and file sharing. This tool has since become an invaluable one for many large corporate companies working in almost every sector. VDRs are the safest and most efficient way to share digital data. So here’s why they are much better than any of their competing storage and sharing solutions.
Why a VDR is the best file sharing service on the market
First, what might be competing with VDRs in the market for data storage and sharing solutions? Well, physical data rooms are necessary to store data for information-sensitive processes. Often, empty office spaces or storage rooms are converted to house cabinets upon shelves upon piles of documents.
Businesses would have to pay for potential investors or clients to physically come in and view the data, while security would control the access into and out of the room. This meant hefty transport costs, extra rent costs, and even wages for additional security personnel. It’s not difficult to figure out that this process is expensive and inefficient, so a faster and cheaper method was necessary. The email was out the door as it was not secure enough. And there were no other real options until the creation of cloud computing in the last decade.
Secure file sharing solution for M&A and IPO due diligence
On the back of this creation of cloud computing was the birth of VDRs. They were the method that corporate companies were looking for to securely share their confidential data. Not only that, but they also allowed companies performing cumbersome and expensive processes, such as the due diligence process (either in M&A or when doing their IPO), to complete such processes in a fraction of the time. The main features that many VDR solutions on the market offer are superior security, organizational tools, and access control.
The VDR security features for file sharing processes
The main function that we concern ourselves with in the case of “secure file sharing” is, of course, the security features. Starting at the data centers themselves, the VDR providers employ both physical and digital security measures. As for the physical security, experienced personnel patrols the grounds 24/7, while security cameras watch at the same time. Furthermore, they will have backup power generators in case of a cut or some other emergency.
Along the same lines, but for more drastic situations, they will also have offsite backup servers that will run should the main ones go offline. All of this is to ensure that you have access to your VDR at any time of day, and from anywhere. When choosing your VDR provider that they do actually have such features, as some of the lower-end solutions might not offer the same level of physical security.
Since you can be sure that the servers will be physically secure, you might only worry about outside attacks of your actual data. However, the servers that house your data have multiple firewalls at any given point in the storage and file sharing process. This ensures that no prying eyes get access. Furthermore, the data is encrypted with the highest commercial-grade 256-bit encryption software available. You can trust me when I say that your data will never be safer than when stored in a VDR.
What other file sharing, access control, and organizational tools VDRs can offer
The only features that you need to concern yourself with are the ones you can control. They are access control and organizational geatures. Virtual data rooms allow you to set unique protection levels for each and every party that enters into the data room. These protection levels range from just being able to view documents, to being able to print and download them as well. This is important because setting the wrong levels for certain parties might lead to a leak of your data, so be careful!
Finally, the data organizational tools that are offered, when used right, can mean huge increases in efficiency of decision making by either side of the transactions in which you find yourself. Not only is it more efficient, but a well-organized data room will give possible investors a better impression of your business and, hopefully, lead to greater transaction value!