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Virtual datarooms provide your business with a secure place to work, store corporate data, conduct transactions, and much more.
In addition, they can act as a current repository where corporate administrations can quickly access any necessary information.
A virtual data room can be used on its own or as an addition to tools for accounting, legal, tax issues, etc. At the same time, all VDR providers make a serious emphasis on the security and protection of confidential data.
This was the main reason for such wide use of these tools in large corporations, which deal with merging and acquisition.
For example, among the information that should be especially protected are intellectual property, copyrighted data, trade secrets, and so on.
Considering that lately cyber attacks on organizations with the aim of illegally seizing information are of a global scale, VDR tools have become especially widespread and are used all over the world, offering a plethora of advantages for companies striking deals.
Scroll down to learn more about key features of virtual data rooms, their advantages compared with FTP servers, and much more.
VDR Benefits for Business Deals
Currently, there are a lot of online data room providers on the global market, each of them comes with a specific set of features, which can distinguish their products.
However, there is also a set of standard options which are a must-have for any VDR software. Scroll down, to learn more about them.
Security
As already mentioned, security is a priority for any user of the VDR solution. That is why many providers implement first-class encryption systems (not only 128 but also 256-bit keys for AES encryption), two-factor authentication, dynamic watermarks on documents, an extended system for accessing files and folders according to the hierarchy.
This significantly distinguishes VDR from, for example, physical data room. In addition, VDR product providers offer an advanced anti-phishing system and protection against man-in-the-middle attacks.
All activity can be tracked thanks to audit logs, secure browser connections, and more.
End-to-end Functionality
An equally important task any VDR resource faces is a comprehensive solution for the entire transaction process. It can save both time and money resources.
As a result, you get a smoother integration due to the seamless flow and exchange of the necessary data.
Individual Permissions
Using VDR, users can control file visibility, access, and permissions. Most tools provide the ability to define permissions at various levels, namely document, folder, group, and user to manage access control.
As a result, you can change the terms of sharing, printing, and downloading information.
A deep level of control allows you to have an idea of who is using documents at any time period. Also, VDR resources allow you to set up notifications, alerts, and audit trails to track project activity.
Questions and Answers
Thanks to this option, any user can quickly find answers to the main questions regarding the functionality and technical side of using the resource. It also helps you quickly search for files, saving time and getting rid of any confusion.
Integrated Document Management
Timely VDR resources offer the option of integrated document management. This allows you to comment and modify files, add notes, set user permissions, and more.
Friendly Interface
One of the main tasks of any VDR product is to provide a modern and at the same time intuitive user interface. The software should be used just as easily as on a desktop computer as well as on a tablet or even a smartphone.
This gives users maximum flexibility and the ability to work on the go.
In addition, all modern VDR solutions implement the possibility of a drag and drop option, which significantly saves time required for working with files, importing and exchanging documentation, and so on.
Also, a high-quality VDR should support most file formats, be responsive and fast in uploading/downloading content.
Differences Between FTP Servers and Virtual Data Rooms
From one point of view, FTP servers and virtual data room resources have a lot in common. However, this is only at first glance. Below are the main points that significantly differ between these two ways of managing information.
- Simple implementation. Unlike an FTP server, a VDR does not require special knowledge or the involvement of IT specialists for installation and configuration.
- The level of security of FTP servers directly depends on the IT team. To keep files secure when using FTP servers, you need a good IT team. When utilizing online data room software, you do not risk security, since the data is protected at the e-banking level in accordance with the GDPR and AES standards.
- Multitasking VDR resources. FTP servers only provide basic file transfer. VDR, in turn, offers the ability to change the rights to work with documents, create reports, use the advanced search, and so on.
Who Uses Virtual Data Rooms?
Electronic data room software is wide-used in any sphere of activity. Below, you can check the most popular areas which already implemented data room technologies.
Life Sciences.
VDR software is especially popular among biotech, medical and pharmaceutical organizations that store large amounts of information related to intellectual property.
These companies often cooperate with other organizations that license intellectual property, raise funds, and more.
Investment Activities of Banks.
Investment bankers are always in need of a reliable tool that will simplify the process of closing deals. M&A processes are complex, so a user-friendly and reliable tool with due diligence is essential.
Private Equity and Venture Capital.
Private equity and venture capital firms conduct a large number of transactions that require the sharing of information with multiple parties. This dictates the need for a high level of transaction security and data confidentiality.
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