Online data room software is a term well-known in the business world. Still, a major section of professionals is yet to discover the amazing benefits of virtual data room software. In this guide, you will learn about data room software, how it works, and what are its benefits for business.
What is a virtual data room?
A virtual or electronic data room is a cloud-based business solution that is mainly used in three ways:
- For data storage where businesses or professionals can safely store business data and retrieve it remotely whenever needed.
- For online collaboration between employees, project teams, investors, counsellors, managers, and third parties. The collaboration may include data sharing, online meetings, and other forms of communication.
- For online business deals such as capital investment, joint ventures, business partnerships, real estate asset trade, fundraising, initial public offerings, and mergers and acquisitions. Online data room software allows all concerned parties to communicate online and complete the legal paperwork within the data room.
In a nutshell, virtual data rooms:
- Safely store private or important business data
- Ensure safe communication and data sharing with internal and external parties
- Help track deal progress
- Connect investors and stakeholders with the business
Top virtual data room providers in 2022
It is essential to compare virtual data rooms before buying one for your company or personal use. To make things simple for you, here is a list of some of the best virtual data room providers:
- DealRoom
- Merrill
- iDeals
- Firmex
- Google Workspace
- Sharevault
- Box
- ShareFile
- Ansarada
- SecureDocs
You can read more about the DealRoom data room software at: https://dataroom-providers.org/dealroom/. The website contains many other data room reviews, with objective, data-driven conclusions about each competitive solution on the market.
Are virtual data rooms secure?
In the text above, the word "safely" has been used multiple times. What does the word "safely" mean in this context? Virtual data rooms are not casual data storing or sharing solutions like the ones available on the internet.
VDRs have a bank-grade security system, and online data room services are offered by certified data room vendors who strictly comply with local and international cybersecurity standards.
As a matter of fact, if you are looking to hire a data room service provider, make sure it complies with the following data security standards:
- ISO 27081
- ISO 27001
- FINRA
- SOC2
Key benefits of virtual data rooms
Virtual data rooms assist businesses and professionals in many ways. Here are some prime benefits of an electronic data room.
1. Central data storage
Data rooms, being cloud-based solutions, allow businesses to keep their private documents or their routinely used data in place. A central data storage system means your employees from all sections or departments will be able to upload or retrieve their required documents from one place.
2. Data security
Data security is the most premium benefit of using virtual data rooms – and this is the biggest reason why businesses use them. Cyber crimes are not new to any of us, as so many businesses across the world have suffered at the hands of hackers and cybercriminals.
However, when it comes to data security, online data rooms are the top choice of thousands of companies worldwide. A virtual data room protects your confidential information at all levels.
For instance, data protection starts by preventing unauthorised entries in the data room. Features like multi-factor authentication make sure that only recognised users can get through the initial security barriers.
3. Document access control
Apart from the initial security barriers, data room software provides unparalleled document protection in different ways. For example, VDR management is allowed to limit the access of any user in the data room to specific folders or documents.
Similarly, if the administration doesn't want any data room user to edit, print, or download a file, it can put the document in "view only" mode. Also, the owner of the file protects their copyrights by using digital watermarks.
4. Safer data sharing
Data sharing has been made easier and safer by electronic data rooms, especially data sharing with external parties. Depending on their access rights, data room users can edit or annotate documents in real-time. They can share documents with more than one user simultaneously or work on shared documents.
When sharing data with external parties, data room administrators can set data access restrictions according to their needs. They can avert temporary users from stealing documents through "fence view" mode, which prevents users from taking photos or screenshots of a document.
Summing it up
VDRs are cloud-based data repositories and virtual workspaces specifically designed for safe data storage and business communication. Data room software ensures you have complete control over the data flow in your VDR. Most importantly, they are certified by globally recognised data security standards and therefore are completely safe and easy to use.
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