Data leaks or thefts not only make a business lose its competitive advantage it can have legal complications as well. A telecommunication company experiencing customer data leaks means thousands of customers are vulnerable to phishing attacks and misuse of personal details. Can you imagine something like that happening to your business?
But how can you make sure that you have the right security measures for your business data protection? Well, one way to keep your business data safe is by integrating a secure data room into your business operations.
If you are yet to discover the benefits of virtual data room software for businesses, then here is a comprehensive guide for you.
What is a data room?
A virtual data room is an online, cloud-based business solution that performs multiple functions.
For starters, it is a certified and highly secure data repository where professionals, businesses, government organizations, firms, corporations, enterprises, nonprofits, etc., can store their confidential and daily-use documents.
Second, an electronic data room is a centralized platform where a large number of employees, colleagues, managers, project teams, investors, and stakeholders can communicate in a controlled environment. They can share, upload, edit, create, and exchange documents. Data room users can communicate in real-time through different channels.
Third, VDR software is one of the most secure online deal rooms available in the market. Whether it is due diligence in mergers/acquisitions or secure & organized data presentation in fundraising, virtual data rooms are trusted worldwide. Apart from that, VDRs are commonly used for joint ventures, strategic partnerships, real estate transactions, capital asset acquisitions, and clinical trials.
Is virtual data software suitable for every business?
Are virtual data rooms good enough for every business? Virtual data rooms are used by businesses of all types and sizes. In fact, data room vendors have started offering industry-related solutions.
For instance, DealRoom data rooms are specifically developed for bigger transactions like M&As, fundraising, IPOs, etc. Similarly, iDeals data rooms have a large legal form library that helps lawyers during litigation and trials.
Apart from that, the majority of the data room providers have all the basic data room features that are necessary for any business type. That is why virtual data rooms are used in various industries and by different professionals, including:
- Lawyers and law firms
- Financial advisors and consultants
- Oil and energy sector
- Private equity firms
- Healthcare industry
- Pharmaceutical companies
- R&D firms
- IT firms
- Investment banks
- Senior managers
How does VDR software protect business data? What are its benefits?
Business data protection is one of the primary benefits of virtual data rooms and the most important one too.
- Centralized data storage
As VDRs are cloud-based solutions, you can store all your business data (from every department) in a centralized place. That means your financial documents, marketing plans, product designs, research findings, human resource records, audited statements, contracts and agreements, etc., will be kept in one place.
Centralized data storage has two major benefits:
- It is easier to protect your business data because you don’t have to handle multiple databases.
- It helps save money because data stored at multiple places is an expensive way to manage your business data.
- Data protection
Data rooms have bank-grade security, which provides data protection at various levels. For instance, data rooms protect unauthorized entries with the help of features like two-step verification.
If there is an unauthorized login attempt using user credentials, the concerned user will be immediately notified through SMS or email. Similarly, two-step verification makes sure that a user logs in after entering the correct password and new, one-time generated code.
If a user accidentally deletes a file or document, it can be retrieved from the backup maintained by data room vendors. Certified virtual data room providers have multiple servers installed in different locations. That means any damage to one data server will not affect your business data.
Data rooms employ the latest data encryption models (256 bit); the data you store in encrypted form is only accessible by you or authorized users.
- Safe data sharing
Data sharing has been made safer and more controlled by VDR software. Any high-end electronic data room software allows the users to share documents in encrypted form. That means only the intended recipient will be able to get the decoded version of the file.
Data room users can also share documents for a specific time period. As soon as the time expires, the document is either self-destructed or the access is withdrawn. In fact, data room administration or file creators can revoke document access anytime.
The “fence view” mode restricts users from scanning a document or taking a photo or screenshot. The “view only” mode prevents any user from editing, altering, downloading, saving, or printing that specific document.
The file owners can add dynamic digital watermarks to stamp their copyright. Digital watermarks can be used to trace any changes made in the documents and details of the users who make changes.
Data room administration can also purge a device and all the VDR documents in it. So, if you lose your laptop or mobile connected to the data room, the data will be deleted from the device.
Business data safety must be a top priority of every entrepreneur, service provider, and business owner. Investing in reliable data management software like virtual data rooms always produces solid results. Besides, data rooms are equally useful for enterprises and small businesses.
You can read more about online data rooms here https://vdrsolutions.org.