In this article, we will discuss what is a Virtual Data Room and how to deal with it.
Virtual Data Room as a tool for sharing and saving information
In today’s economic environment, business processes are increasingly becoming global and becoming international. This, the Virtual Data Room (VDR) is a new milestone in the development of enterprise cloud services and one of the most promising business segments in the field of storage and data exchange. Today, the technology of the VDR is quite convenient, as it allows you to create an online workspace. The processes that used to take a few months now can be done in a matter of days. Because documents are online and available from anywhere there is a connection to the Internet.
The use of documents in VDR has greater security guarantees. Participants should register in the VDR by entering their password, and accordingly have different access rights to documents: some can download the document, and some – only read on the screen. This means that the person providing the documents for review will not have to physically monitor the movement of documents – the program will take care of everything.
VDR is used as a tool:
- due diligence of corporate transactions (loan syndication, bankruptcy and disintegration, real estate sales, acquisitions, mergers etc.);
- external financial and technical audits;
- implementation of a technical solution by an external company;
- joint projects of companies;
- merger / acquisition process of companies.
Virtual Data Room or Cloud Storage?
Very often, the functionality of VDR is compared to the capabilities of conventional public cloud storage (for example, DropboxBusiness), which are cheaper and easier to use. However, these two technologies cannot be named substitutes in the world of IT.
In addition, almost all modern VDRs, in contrast to public cloud storage, have two delivery options: “hosted” and “on-premises”, which allows you to use the solution and store data both at the service provider and within the organization. This is definitely more beneficial for companies that are aware of the value of their data and the amount of risks associated with their leakage.
The benefits of using VDR for business
The virtual data center, as a universal solution, is suitable for tasks of any format and provides business with the following advantages:
- VDR opens up global markets for acquisitions, mergers and acquisitions, and real estate contracts versus direct and paper-based transactions;
- it is available 24/7 from any web browser;
- this helps increase the number of business transactions due to greater availability;
- these rooms provide good information security, no one can download or take information from these VDRs;
- it is a product of combining elements of a web content management system and a document management system;
- important information can only be seen after authentication and authorization.