The evolution of software in the business world has streamlined many complex business processes. As a result, it has increased the productivity of companies and greatly simplified their existence. However, modern technological solutions have long since begun supplanting traditional case management, such as document management and sharing. And what’s more, using outdated methods can make a company uncompetitive in the marketplace. This article will define how modern virtual data room solutions differ from traditional document storage and use methods.
Definition of a physical data room
A physical data room is a designated physical space for companies to store important confidential documents needed to further a transaction, such as a merger and acquisition, or an investment transaction. Potential partners must visit the DA until they have completed due diligence during the transaction process, regardless of location. Sellers, in turn, must ensure that experts have access to the documents they need while at the same time taking care to keep their data confidential. It is not an easy task because, with many potential buyers involved, it becomes impossible to keep track of every action, even with surveillance cameras and security guards. Using a PDR, the transaction process drags on for weeks, and the deal team is forced to perform constant duplicate tasks. In addition, the physical vault only operates on specific schedules and is not resilient against fires, floods, and other unforeseen circumstances. These and many other factors have encouraged companies to move to more flexible popular data room sites.
Definition of a virtual data room
A virtual data room is an improved version of a traditional data warehouse. VDR is an online tool that allows you to securely store the most sensitive documents needed for the transaction in its space. In addition, they have all the necessary solutions and features in their arsenal to start and complete a transaction without using any additional software. In this way, VDR limits the external impact on privacy. At the same time, its advanced security technology also allows full control over the activities of other users and protects data from the internal threat of data leakage. In addition, VDR is a more convenient, cost-effective, and efficient solution.
Virtual data room vs. traditional document storage
VDRs excel in almost all characteristics compared to physical storage; for example, with a data room, you can count on:
- On-demand access
Using a data room, an authorized user can log into the space and work with the information they allow from any time of the day or night. And VDRs support all devices and operating systems.
- High security
VDRs are certified devices that meet international security standards. They are excellent at preventing cyberattacks, using data encryption, multi-step verification, dual authentication, automatic virus scanning, and watermarking. VDR also has a permanent backup feature, so your data is guaranteed to stay intact, no matter the circumstances.
- Shorter paperwork
All documents are in digital mode, which prevents any confusion, loss, or damage to the paper. Plus, with drag-and-drop, bulk loading, smart search, automatic display, and conversion, data management is easier than ever.
- Limited Access
Space administrators can limit other users’ access to the smallest detail. This way, you customize access to your data based on the user’s role. For example, you can set partial visibility and prohibit copying, printing, downloading, and other actions on the document.
- Saving
Maintaining a VDR is much easier than an entire physical building. For potential partners, you don’t spend money on printing paper and other office supplies, devices, travel, and lodging.