Everything is going digital; businesses, communications, and even customer preferences are based on online channels. Big brands mostly use emails or other similar channels to communicate with their customers. Businesses are also switching to digital routes for communication, collaboration, or data management. Remote teams, work-from-home regimes, and across-the-border business ventures have created room for secure communication platforms.
Modern-day businesses and data room software
Corporations, firms, enterprises, or private equities needed such a business solution that could help them automate the communication and data management process. Fortunately, virtual data rooms have filled that gap, allowing businesses to handle their secretive and general affairs in a most secure way.
Do you know that cybercrimes peaked during the year 2021, and 2022 isn’t different either? Even after revolutionary tech advancements, data protection is still the biggest threat for businesses. That’s why online data room software is a frontline software in the business fraternity.
Why does a business need a virtual data room?
As an entrepreneur or a business owner, it is obvious that you would consider all aspects before making an investment. Virtual data rooms are also long-term business assets, and here is why you should invest in them.
1- Secure business data storage
The problem with the paper documents is they start decaying, forcing you to create backups. Backups need more space, and their protection becomes even more difficult.
Data room software can help you get rid of maintaining those backups and preserving your business documents from thefts and natural disasters. All you have to do is subscribe to any certified data room services, set up your data room in 15-20 minutes, and start uploading your business’s documents to it.
Choosing certified virtual data room providers means you are protecting your business data with the latest and most robust data security systems in the world. Here are some notable and commonly found VDR data security features.
Two-step verification
Although it’s a basic feature, it prevents intrusions and unauthorized entries into the electronic data room. Users can log in after entering the correct password and one-time generated secret code.
Multi-factor authorization
When a user tries to log in from a new device or with a different IP address, the multi-factor authorization feature makes sure that the user’s device or password is not compromised. The user still has to verify their identity in different ways. For instance, the data room software may ask the user to identify their latest activities in the VDR.
Document access settings
Controlling who is or isn’t allowed to access specific files, pages, documents, or folders is also another great feature of virtual data rooms. You, as your data room administrator, can decide how much access should be given to VDR users.
Remote purging
Do you know that you can revoke document access anytime or delete a device linked to your VDR? In fact, you can also purge the VDR documents from that device.
2- Remote access
Moving out of town, traveling, or having a recreational trip, doesn’t mean you are cut off from your business. As an entrepreneur, it is important for you to stay updated, and virtual data rooms help you do that.
As virtual data rooms are cloud-based platforms, they are accessible from anywhere. You can access your data rooms from your laptop, tablet, or mobile phone too. Some of the best virtual data room providers give you the luxury of accessing VDRs via dedicated mobile apps.
Remote accessibility gives investors or stakeholders a better chance to connect with the businesses they have invested in. Nowadays, you can access VDR data without the internet—data rooms can amaze you in many ways.
3- Accountability
Do you want your business data and operations safe from internal threats too? How would you know if your employee copied an important file from your database?
With virtual data room software, you can hold every user in your data room accountable for their actions. The data room does not let blacksheep escape easily. That’s because you can generate detailed audit reports of your virtual data room.
These reports include every activity or action performed in your VDR. You can track document edits, group chats, and who did what when and where. And it is no secret that accountability boosts transparency.
4- Reduced business/administrative expenses
VDR vendors provide data backup, so you don’t need paper documents to create a backup. Maintaining paper-based documentation can cost you hundreds of bucks every month. Paper, printers, cartridges, clippers, folders, and other stationery expenses can be minimized or reduced to zero with the help of data rooms.
Final words
Virtual data rooms have so much to offer to modern-day businesses. Safe data storage & management, online communication, remote accessibility, ease of use, and last but not least, their cost-effectiveness make data rooms a handy business asset. However, compare virtual data rooms before you choose one for your business; read online reviews, look out for your desired features, and compare their pricing models.
Featured image by Manuel Geissinger from Pexels