Data rooms became truly viral over the past several years. Businesses get numerous advantages using them. So there is no surprise the virtual deal room market became rather big and profitable. New providers are created constantly, and every one of them is trying to amaze users with interesting tools on this endless battle for the interest of the audience.
But do virtual meeting rooms actually differ that much from virtual repositories? And why would a business give money for it? Since there are many individuals who will ask these questions, let’s find out the technology behind the virtual deal room.
What is a digital data room?
Let’s begin with the basics and talk about the application itself. It is a virtual storage where businesses can store their sensitive data. But although it is the most important feature of such technology, the list of its instruments doesn’t end on simply being an archive. VDR offers its users a complete interface for all firm interactions. Here employees can share the information, talk about details, get prepared for meetings and many other. Basically, using this technology a company will have a broad range of various instruments that will allow to improve the work of the team and whole business.
So, whilst generic online repositories can only offer a virtual space so a company owner can keep the information there, data rooms virtual data room services are an extensive company tool. These tools can be used during Due Diligence, Mergers and Acquisitions, fundraisings, IPOs and other business interactions.
Protection is important
Of course, not each firm interacts with the classified data all the time. But even though this data can be not quite valuable, any CEO would want to get their files stolen or illegally used. Online repositories like widely used Dropbox or Google Drive are not that protected – varied cases of data leaks have shown it to us rather clearly.
So, the main difference of VDRs is the data encryption and diverse methods of protection. Of course, generic virtual repositories encrypt their transmission lines too – but not exactly the transferred information itself. And if someone else has a direct link to the file, it can be easily stolen by hackers.
Data room providers protect not only transfer lines but the information as well. There is no way they will experience any kind of threat caused by malicious acts of hackers. Moreover, all electronic data 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.
Also, the owner of the electronic data room can control the amount of access other parties have. Settings can be changed at any moment. And if any extreme situation happens, the room owner can destroy the file remotely or stop the access to it.
Unlike simple virtual storages, online deal rooms are made to develop the working process of the enterprise and within parties. So besides that participants can exchange the data with each other, they can also get involved in discussions, handle different votings, manage Q&As and much more. It is extremely useful to have all tools in one interface.
Moreover, CEOs have a chance keep an eye on the work process of their enterprises in the online deal room . Some providers even offer an artificial intellect implemented in their software. It allows to forecast situations and tendencies and get better insights. Also, entrepreneurs can track thparties and notice if there are any flaws in the workflow of the brand.
In conclusion, there definitely are different reasons to implement a electronic data room in your company and stop using generic virtual repositories . Once you try an online deal room, you will not want to stop using it.