Virtual Data Room Reviews
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The data room began as a physical storage location where companies stored their essential information. However, that has changed with the introduction of the virtual data room. A virtual data room is a web-based platform where documents are uploaded with several security features implemented to prevent unauthorized access to such documents. VDRs are similar to the free cloud storage offered by Apple, though they are more intricate, and yes, they are not free
What’s the connection between a virtual data room and information? The conventional practice of storing information on a hard disk puts such information at risk. It’s worse if the information stored is highly sensitive and when hackers breakdown the security of the computer on which such information is stored, the outcome is the information is leaked to a rival firm for a fee or perhaps exposed. Wikileaks has exposed sensitive information in this manner, equating to cyber theft.
The use of virtual data rooms isn’t limited to storing information but also sharing it with only privileged individuals. This explains why it’s becoming a common feature among different establishments. Institutions like banks and law firms engage their clients through such virtual data rooms. A virtual data room can be used for transactions which involve the sharing of sensitive information. One of the common uses of the virtual data room is mergers and acquisitions. Mergers and acquisitions come to mind due to the different phases in a merger which involve sharing highly sensitive information. This increases the outlay of the entire process.
However, the use of a virtual data room eliminates the cost of assembling experts in a physical deal room a common occurrence in the past. It also reduces the stress common with such deals which are important for any business transaction in the 21st century. The use of a virtual data room isn’t limited to transactions of the merger and acquisition variety, other industries like the health sector and law firms would find the virtual data room of immense benefit.
Besides information sharing with clients, corporate bodies can share sensitive information with their employees in far away locations. This saves companies the resources they would otherwise spend on transporting a messenger to the location of the branch in question. This is exclusive of the increased risk of compromise of such information. Also, virtual data room providers cater to the storage needs of users. Companies can store information in a virtual data room for necessary procedures in that may occur future. The storage option provided by virtual data rooms is perhaps one of the safest, and it’s convenient. This can be explained by the numerous security and several other features typical of renowned VDR providers.
We live in a time where information is probably one of the biggest assets a company can have. Some companies go as far as paying for some sensitive information which could be instrumental towards an increase in profit. However, with the value attached to information comes problems which could affect the operations of a company regardless of its size.
One of the main issue companies face in this era of informatics is information theft. A lot of unscrupulous people are aware of the value of information, and many steal such information and sell same to the highest bidder. Others blackmail the management of the company with a request for money else they could lose their sensitive information which could leave their company in ruins. While physical storage of information comes with the risk of fire outbreak and similar incidents which could render the information useless, storing information in devices such as a computer or mobile phone comes with its fair share of risk.
Cloud storage is meant to tackle the risk associated with information storage. Typical cloud storage options such as Dropbox, Google, iCloud, and Samsung have their inherent flaws in the lack of sufficient security which is needed for the sensitive information companies aim to protect against unauthorized persons. This leaves virtual data room providers with no rivals in this aspect as they come with the necessary security and other gimmicks to ensure clients store their previous data without any form of discomfort whatever.
Virtual data room providers are not only important for the storage facility they provide firms; they also serve as platforms through which business transactions and collaborations take place without fears of interception or the expenses associated with such interactions. The issue a lot of companies face when engaging with the services of a virtual data room vendor is the features which many of these VDR providers have incorporated into their virtual space. Some Virtual data room vendors prioritize mergers and acquisitions; a few are centred on ensuring their storage facility and collaborations propelling efforts is seen as standard around the globe.
This means a company will have to scrutinize the virtual data room provider and find out its strengths regarding the services it renders and if it matches with the needs of the company. Should you intend to engage the services of a VDR provider, below are some factors you would want to take into consideration:
For businesses on a budget, this would take precedence over other factors, while more established firms with adequate resources, pricing takes a back seat. Some virtual data room providers have a fixed rate pricing module with zero limitations regarding the number of users and the amount of data transferred using their platform. Others have caps on the number of users and quantity of data transferred with fees attached if you want such caps removed.
Also, like every other industry, the virtual data room sector exhibits discrepancies in price since entry firms can’t possibly operate a similar price module to a well established VDR vendor. A typical instance of such a situation is the huge gap in price offered by Intralinks and Box virtual data room provider. So, if you’re a company with limited funds with a need for a virtual data room provider, you might want to pay special attention to pricing.
Virtual data room providers always ensure their VDRs are secured against unauthorized access. There are a handful of VDR vendors which have the latest technology to prevent an organized attack against their virtual space. One of the security protocols you might want to consider in a virtual data room is the popular 256-bit encryption which should provide protection against interception of sensitive information you send across to a user in a VDR. Another is ensuring the VDR provider is ISO 27001 compliant and has is in possession of data centres.
Virtual data rooms with permission management are also worth considering since it gives you control over user access which could become important in the long run. Personalised watermarks also add some layer of security to a data room, so it’s another noteworthy security feature.
A virtual data room provider which operates beyond the traditional 9 – 5 working hours typical of a lot of organizations is one of the factors businesses consider in engaging VDR providers. It gets better when the usual cliché week days only aren’t applicable. Some virtual data room vendors operate around the clock customer support while some others only provide such service during business hours which excludes weekends. You might want to consider this factor before using a virtual data room provider.
Language is another factor which you would need to consider before engaging a virtual data room provider. Some virtual data rooms only cater to a few languages, while others support much more languages which would come in handy if your collaborators are from a different region.
If you’re unsure of when to use a data room then perhaps a little recap of what has been said above should provide some insight. Virtual data rooms provide avenues where representatives of companies can think for either collaborative purposes or mergers and acquisitions. Virtual data room eliminates the cost associated with physical deal rooms and still provides sufficient security for the information shared on the platform.
Though there are no restrictions on the kind of industries which can use a virtual data room, some industries have become more accustomed to it. Examples of such industries include Legal firms, Investment banks, Pharmaceutical companies and several others.