Digitalization in the business sphere has given rise to new technological solutions, such as data room software. Lawyers, business persons, accountants, startups, and other professionals use the service as a secure and confidential repository of data and documents. Business owners looking to create safe and efficient business models should also look into dataroom capabilities. Why? Stay tuned to learn more about VDR features and their importance to your business.
Reason 1 — Secure Online Data Storage
In the business sphere, information is of great value for maintaining stability or moving to a new level of development. For many entrepreneurs, VDR is an island of security in a world of virtual threats. You can work with documents through online rooms without thinking that they may fall into third parties. The following are the most common scenarios for using a virtual data room:
- To send documents to an external counterparty while maintaining the ability to control and manage access rights.
- Setting the time of use of access rights for design organizations or companies.
- Protection of valuable data from company employees who are at risk or are subject to staff turnover.
- Control of the conscientiousness of the fulfillment of obligations by the second party during the conclusion of the transaction.
No cloud service can fully protect your data from risks like VDR. A decade ago, negotiations and deals were accompanied by labor-intensive paperwork, which resulted in extended transaction times. At the same time, paper copies were often lost or damaged during postal shipments. Therefore, we recommend reading reviews about data room providers before choosing one of the services.
Reason 2 — Budget Savings in Working with Documentation
When using paper copies of documents, you will eventually face the question of where to store them. The larger your business, the more space is required to organize paperwork. You also need to have physical rooms to negotiate with partners or investors. Online data room software greatly facilitates these tasks and helps the company save money. As a result, you will be able to:
- save company resources through the use of data deduplication;
- reduce external and intranet traffic;
- circumvent restrictions on the size of mail attachments;
- create a single web interface for managing the platform’s capabilities: data backup, information protection on mobile devices, collaboration with documents;
- easily and conveniently use software without staff training.
Suppose you have a meeting with an investor scheduled, and you need to negotiate. Without a VDR, this task becomes more complex — finding and renting a suitable room, travel expenses, printing paper copies of documentation, etc. The possibilities of data room services help avoid unnecessary waste of time and save your budget. To organize such negotiations in the virtual space, you will need a computer (or mobile device) and a few minutes to set up access to the room.
Reason 3 — A Perfect Way to Keep Reporting
Business reporting plays a key role — statistics, accounting, marketing, etc. A VDR has a set of tools to keep records of data, control employee access, or keep detailed records of company activities. In addition, the secure storage of information in one place makes you a more promising partner in the eyes of investors. Integrating an electronic data room, you get:
- reduction of incidents related to the leakage and compromise of company data;
- storage of data with the history of every employee’s work with each document;
- managing access to data and the ability to revoke previously granted rights.
When choosing a service, read the data room review to ensure the quality of the provider’s services. Pay attention to the availability of additional tools and the possibility of a free trial period. Finally, try to call the provider to clarify the details and the relevance of the cost of tariff plans.
Reason 4 — High Security Is Attractive to Investors
Using a VDR, you open up new opportunities for your business, which will be of interest to a more significant number of potential investors, in addition to a transparent reporting-keeping policy. This saves time and gives additional directions for further development. Most international corporations use virtual data rooms to store their information library. The ease of use of VDRs is also due to the following factors:
- The possibility to integrate with DLP solutions to provide additional levels of data protection.
- Protection during the exchange of data between the workstation and the server without the use of a VPN.
- Detailed reports on the use of corporate data.
Businesses can use secure online storage with additional features thanks to virtual rooms. Do you need to restrict access or use a meeting planner? A VDR can offer it. Use digital signature tools and watermarks to authenticate documents. At the same time, the DRM protection component is integrated into the service. It guarantees the safety of data throughout the “life” of the document.