Digital data rooms became extremely widely used during the past several years. Firms get vast benefits using them. So there is no wonder the virtual deal room market became rather huge and profitable. New providers come out often, and every one of them does its best to surprise clients with interesting instruments on this endless battle for the interest of the audience.
But do deal rooms really differ that much from generic virtual storages? And why would a company give money for it? Since there are a lot of people who might ask these questions, let’s learn the technology behind the data room.
What is a virtual deal room?
Let us begin with the basics and take a look at the software itself. It is a virtual repository where companies can store their sensitive files. But even considering that it is the main feature of such technology, the list of its tools doesn’t end on just being a repository. Digital data room offers its users a complete interface for all firm interactions. Here employees can share files, talk about issues, get prepared for meetings and much more. Basically, using this technology a enterprise will have a vast range of various instruments that will allow to develop the performance of the team and whole enterprise.
So, whilst ordinary online repositories can only give a virtual space so a brand owner can keep documents there, virtual deal rooms are a complete firm instrument. They can be used during Due Diligence, Mergers and Acquisitions, fundraisings, IPOs and other processes within the company.
Safety is important
Of course, not all enterprise interacts with the sensitive data on the every day basis. But even though this information can be not quite important, any entrepreneur would want to get their files stolen or illegally used. Online repositories like popular Dropbox or Google Drive are not really safe to use – diverse cases of data leaks have shown it to us quite clearly.
So, the main difference of VDRs is the data encryption and various methods of protection. Of course, generic virtual repositories encrypt their transmission lines as well – but not exactly the transferred data itself. And if anyone has a direct link to the document, it can be easily stolen by hackers.
Online meeting room providers protect not only transfer lines but the information as well. There is no way they will be exposed to any kind of threat caused by malicious acts of thieves. Besides that, all deal rooms have a two-factor authentication. It means that to enter the system the team member will have to enter the code that was sent to their smartphone in an SMS while signing in.
Additionally, the owner of the VDR can manage the level of access other parties have. Settings can be changed at any second. And if any extreme situation happens, the room owner can destroy the document remotely or take away the access to it.
Unlike simple virtual storages, virtual data rooms are made to boost the teamwork of the company and within parties. So besides that users can share documents with each other, they can as well get involved in discussions, handle various votings, create Q&As and much more. It is quite comfortable to have all tools in one interface.
Also, leaders of businesses have a chance keep an eye on the performance of their companies in the electronic data room data room software . Some providers even have an artificial intellect implemented in their programs. It helps to predict events and trends and get more detailed insights. Besides that, directors can see thteam members and notice if there are any flaws in the workflow of the enterprise.
In conclusion, there clearly are varied reasons to get a digital data room in your corporation and stop using generic virtual repositories . Once you try a data room, you will never want to stop using it.