Whether it is the banking sector, financial institutions, government organizations, service providers, consultants, or mega enterprises, virtual data room software benefits them in different ways. Some businesses use data rooms as their main document storage facility, while others use them for easy data sharing. In a nutshell, data room software is a part of the modern-day corporate culture.
But do you know a secure dataroom is much more than a simple data storage or sharing platform? The word “secure” itself somehow explains that VDR software is different from free online data management tools. It provides the highest levels of data security to your confidential documents.
Read on to learn more about online data rooms and their benefits for businesses.
What is an Electronic Data Room?
An electronic or virtual data room is a multi-purpose, cloud-based solution used for secure data storage, sharing, and management. What makes data rooms different from free data-sharing tools is their ability to share thousands of files easily. Moreover, you can edit or annotate documents in real-time, and most of the data rooms make sure you don't need an external app for that purpose.
Virtual data rooms are already serving businesses from different industries, including marketing firms, oil and energy, healthcare sector, investment banking, IT industry, corporate sector, non-profit organizations, government agencies, pharmaceutical companies, law firms, financial institutions, etc.
Top 5 Virtual Data Room Benefits for Businesses
1. Central data storage
One of the greatest advantages of using storage platforms is you can store your business data centrally. In traditional corporate settings, especially in big-sized firms, data is stored or managed by the departments. That is, the finance department will have its own database while HR or marketing maintains data separately.
However, a central data repository allows you to store every single document in one place. You might be thinking, how is it a wise move? Or how will different corporate departments be able to protect their confidential documents? Virtual data room software is remotely accessible, which means employees can access it from anywhere.
But how to restrict users from accessing documents that are not relevant to them? The answer is "document access control."
2. Document access control and security
Central data repositories may give unauthorized or unnecessary access to business data. However, virtual data rooms have an answer for that. You can organize your business documents according to their categories.
Then you can add your employees or management from all departments and give them document access according to their roles. For instance, if the HR department has nothing to do with financial records, you can restrict HR from accessing those files or vice versa.
That’s not it; you can even restrict any of your employees from accessing a specific section or a page. Any user can be restricted from downloading, editing, printing, or saving a document. You can even restrict someone from taking photos or screenshots of your confidential documents.
Moreover, data rooms have features like digital watermarking or file tracking. Last but not least, document access can be revoked anytime.
3. Data security
Virtual data rooms have security features for data room security. For starters, online data rooms are hosted by certified service providers. The protection starts at the very beginning; the two-step verification feature employed by data rooms ensures only authorized users have access to VDR.
Any secure dataroom like iDeals, Firmex, Datasite, or SecureDocs offer features like two-step verification. Apart from that, these data rooms usually provide a "device deletion" feature which allows you to delete any device connected to the data room and documents downloaded or saved from VDR.
And by the way, you can read the full iDeals, Firmex or SecureDocs review here.
4. Transparency
It is very difficult to ensure transparency in any organizational culture. Not every employee has the same work ethic; that is why maintaining full control is difficult.
Data rooms help you ensure 100% transparency with the help of audit logs. Audit logs are detailed reports that allow the management to monitor all the activities in your VDR. You will have every minute detail about every file opened, edited, saved, or downloaded and who made those changes. Every activity is reported with a detailed timeline.
With detailed logs, you can hold your employees accountable for their actions, and it helps you avoid any internal data thefts. This feature is also very useful to win the trust of your investors or partners because transparency is appreciated by everyone. Transparency also boosts the trust factor during dealings with external bodies or organizations.
5. Cost-effectiveness
It doesn’t matter if you run a small business or a large-sized firm, the importance of using your financial resources is the same. Virtual data rooms help you save a hefty amount of funds which can be used in better ways.
As data rooms are paperless solutions, you can save up to $400,000 annually. Yes, this is what a company (on average) in the United States spends on paper and printing-related costs.
You can use data rooms for your major business meetings and save the expenses incurred in on-site meetings.
Businesses also use data rooms to get their documents audited online. This not only saves time, but the company won't have to bother about the residential and other expenses of external auditors.
Final Words:
Virtual data rooms are business assets, and an asset can be fruitful in different ways. A data room provides you with a central place to manage your business documents and protects them from internal and external threats. VDR software also provides secure online communication channels and reduces your administrative expenses.
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