What Are Virtual Data Rooms?

fiona November 9, 2018 No Comments

To know about virtual data rooms first we have to understand what is data rooms? Data rooms are places used for housing data, They can be virtual data rooms, physical data rooms, or data centers. A virtual data room also known as a VDR it’s an online storehouse of information that are used for sorting, distribution and storing the files. All this process done by internet connection but it’s a controlled access. These connections are very secure and supply by vendors or authority responsible for disabling or enabling, the secure log-on at any time. Because of this features and terms these rooms are also known as a virtual deal room.

They are used for a variety of purposes, including data storage, document exchange, file sharing, financial transactions, legal transactions and more.

In the beginning, Virtual data rooms were used by some limited profession like lawyers to meet with their clients. But now a day’s this is not limited for some communities. So many professionals, accountants, doctors, attorneys, lawyers, engineers and businessmen are using VDR facility. It’s very efficient methodology to view documents without requisite of any hard copies or a physical meeting room and this methodology is also cost-effective.

The virtual data room has very secure and limited access facility for confidential data. All these are controlled access for every action of copying, sharing and viewing. They also have times limits and scheduled for viewing the documents and confidential data. Virtual data rooms allow only authorized user to be access during the allowed time period.

Comparison of Physical Data Room V/S Virtual Data Rooms

Physical data rooms are time consuming to manage, maintains are more compare to VDR. User has to suffer traveling and paper demanding. Virtual data rooms easily allow multiple buyers, dealer and users to access and view data and these results are around 30% higher than physical data rooms. Though a true Virtual Data room’s data might not be downloaded but may be viewed with right permissions by administrator.

After reading this much may be one question defiantly comes in your mind why we can’t use Google drive, Dropbox and other cloud storage. They are also secure according to their policy, just kidding, they are secure but not that much level. Here we are talking about highly confidential data. I will explain you this later on.

If you are looking for virtual data room companies then first have look on below companies’ reviews.

Top most Ranked VDR companies

  • iDeals Virtual Data Room – Rating: 5/5
  • IntralinksDealspace – Rating: 4.6/5
  • Merrill DataSite – Rating: 4.5/5
  • Brainloop Secure Dataroom – Rating: 4/5
  • SmartRoom VDR – Rating: 3.9/5
  • WatchDox by BlackBerry – Rating: 3.9/5
  • Box Virtual Data Room – Rating: 3.5/5

How Virtual Data Rooms Save Time and Money

With help of Virtual data rooms you can save time and money because user interface are very quick to build and you can running it immediately and start your secure data sharing with your users. In VDR some functions are so easy you just have to drag and drop your data and documents with built in electronic signature.

Most of Virtual data room providers are paid service some of them are also provide free service for few weeks then if you like the service you have to pay for that. But before buy any service you have to check that virtual data rooms include some necessary and basic things. Like as,

  • Electronic signature included
  • Unlimited users and unlimited documents
  • Free data room archiving upon completion
  • Free implementation and 24/7 support
  • Indexing Bulk upload/download
  • Permission-based user roles (including view only, no printing)
  • Customizable NDA
  • Audit log
  • Water marking
  • Two-factor authentication
  • Privacy blind

Let’s understand in a simple way why would I pay for virtual data room instead of using free Google drive or Dropbox? Dropbox Google and Virtual Data rooms are built for totally different purposes.

When you want to send out data or public information to huge groups of people then Google Drive and Dropbox is perfect. It is amazingly useful to spread material quickly in no cost. In short here it’s very easy to share data, documents and photos.

However when it comes about sharing or storing sensitive and confidential information (cap reports, client lists, financial records, employee personal records and other documents of company) that need to be kept secure and not be open for publicly for the company’s or client safety. And in this scenario virtual data rooms are must. It’s not feasible to store data on cloud storage. So for security, compatibility, reliability there is no other option then VDR.

In Dropbox and other free cloud storage security levels do not guarantee of privacy and protection for your data. These systems were not built for properly organizing and controlling data and limited access for users. So it’s hard to track which user has access to which data.

While you wants to store very confidential documents and don’t wants to access by the wrong people who can be harmful for a company and clients. So final conclusion if you want safety, security and access control for your critical data then chose Virtual data room.