Deal rooms became very widely used over the past a couple of years. Enterprises get differing advantages adopting them. So there is no surprise the online deal room market became extremely huge and profitable. Brand new providers come out constantly, and every one of them does its best to surprise customers with original instruments on this eternal battle for the interest of the audience.
But do digital data rooms actually differ that much from ordinary cloud storages? And why would a brand give money for it? Since there are numerous individuals who might ask these questions, let’s understand the technology behind the VDR.
What is a electronic data room?
Let us start with the basics and take a look at the app itself. It is a virtual storage where businesses can store their sensitive information. But although it is the main ability of such technology, the list of its tools doesn’t end on simply being a repository. Deal room offers its users a complete interface for all business interactions. Here team members can share the information, discuss details, get prepared for meetings and some other. Basically, using this technology a business will have a full range of important instruments that will allow to enhance the work of the team and whole corporation.
So, while generic online repositories can only give a virtual space so a firm director can save the data there, virtual meeting rooms are an extensive brand instrument. These tools can be used during Due Diligence, Mergers and Acquisitions, fundraisings, IPOs and other business processes.
Security is vital
For sure, not every enterprise works with the classified data constantly. But although this information can be not very important, any business owner would want to have their data stolen or illegally used. Online storages like widely used Dropbox or Google Drive are not perfectly safe – different cases of data leaks have shown it to us quite clearly.
Thus, the most important difference of virtual deal rooms is the data encryption and various methods of protection. Of course, generic cloud hosting services 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 malefactors.
Electronic data room providers encrypt not only transfer lines but documents as well. There is no way they will be exposed to any kind of threat caused by malicious acts of hackers. Moreover, all virtual meeting rooms have a two-factor authentication. It means that to enter the system the team member will be asked to enter the code that was sent to their smartphone in an SMS while signing in.
Moreover, the owner of the digital data room can control the level of access other partners have. Settings can be changed at any second. And if any extraordinary situation occurs, the room owner can destroy the document remotely or take away the access to it.
Unlike simple virtual storages, electronic data rooms are meant to boost the working process of the company and within parties. So besides that participants can exchange the information with each other, they can also be involved in talks, hold diverse votings, create Q&As and much more. It is very comfortable to have all tools in one interface.
Additionally, leaders of businesses have a possibility to watch the work process of their firms in the deal room . Some providers even offer an artificial intellect implemented in their software. It helps to forecast events and trends and get more detailed insights. Also, leaders of businesses can keep an eye at thpartners and see if there are any issues in the work of the business.
In conclusion, there surely are varied reasons to adopt a VDR in your company and stop using ordinary virtual repositories . When you try a data room, you will never want to stop using it.